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Yes, but before you produce one million physical objects it's good to do a test run with one to see how strong the market demand is. It's not a foregone conclu
by OnlineGladiator 7y ago
Yes, but before you produce one million physical objects it's good to do a test run with one to see how strong the market demand is. It's not a foregone conclusion that their product will sell at high enough margins and quantity to be successful. You don't automate something before you validate it. Even Tesla made this mistake - they tried to automate their assembly line before they had the assembly line figured out. It's one of the few things Elon Musk did that he later admitted was stupid on his part.
Tesla didn't start with a mass-market vehicle. They started with an extremely high margin, low volume sports car. They then transitioned to a not-quite-as-high margin, not-quite-as-low volume luxury car. They are currently trying to make moderate margin, high volume sedans with the Model 3, but it's uncertain they can currently sell those profitably.