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I'm no expert on Tesla's economics, but on the "running close to the edge" point I would think it's not about being forced to be there, it's just the leadership
by kreetx 8y ago
I'm no expert on Tesla's economics, but on the "running close to the edge" point I would think it's not about being forced to be there, it's just the leadership trying to innovate as much as possible for each of its products -- the result of which being close to the edge is. In other words: they could have spent much less -- but why not do as much as possible if you know you'll survive. This strategy might, of course, back-fire if you fly too close to the sun but thus far it apparently hasn't. And now is payoff time I guess :)
- thewhitetulip 8y agoThey are lucky and capable enough to pull this ou5 that's why it is a good time for them. If even one thing had gone wrong they'd be in big trouble.
- kreetx 8y agoI don't really agree with you. I think there were a million things to do, and in how many you can try something new and untested depends on how much buffer you have. Some of these new things come in batches, like the automation thing they tried with Model 3 that didn't work out and was reverted. And even this was probably a calculated risk.
- thewhitetulip 8y agoWasn't it my point? They took a big risk and they are lucky it worked out well for them!