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Since they are now in the insurance business as well they will soon figure this out. Even was mentioned at the last conference call, they’ve admitted to making
by mcot2 6y ago
Since they are now in the insurance business as well they will soon figure this out. Even was mentioned at the last conference call, they’ve admitted to making a lot of mistakes in the past about manufacturing for repairability.
The transcript is not great but you get the point:
“ It's like if you want to pay more for insurance, you can. But if you want to pay less, then please don't drive so crazy. Then people can make a choice. Like, OK, they want to drive aggressively.
In that case, it'll be higher insurance. Or they want more capital enter driving and pay less. This was actually very helpful for us to have a feedback loop to see what is driving insurance expense. A lot of it is just -- it's like a little fender bender and the net fender bender because of the way that the body collision repair is being done.
It costs like $15,000 or something crazy and like -- and then we can actually adjust the design of the car and adjust how the repair is done to actually have the fundamental cost of solving that problem would be less.So this has helped us under a whole bunch of facility things that we were doing basically without realizing it. But this is a problem with -- in general, with insurance is like if the insurance is, like, all you can eat, then the feedback loop for improvement is sweet. So this gives us a great feedback for improvement because it's basically a fundamentally better insurance product. I'd also like to say, I'm inspired of recruiting because if there's one thing I'd like to come out of this call, it's that a lot of great people want to join Tesla.”
https://www.fool.com/earnings/call-transcripts/2020/07/23/tesla-tsla-q2-2020-earnings-call-transcript.aspx https://www.fool.com/earnings/call-transcripts/2020/07/23/te...
- Alupis 6y agoFrom my understanding, Tesla has been offered help by many major automotive manufacturers such as VW, and rejected it. Perhaps that was foolish in hindsight, since most of their quality, workmanship and repairability problems stem directly from having to learn (through trail-and-error) all the same things the other manufactures learned long ago. The parallels with McDonalds taking Chipotle under their wing to teach supply chain management, distribution, food safety and more are undeniable. Chipotle's founders famously scoffed at learning _anything_ from McDonalds... which may have resulted in the numerous food safety handling issues they had a few years back (not washing raw produce that was transported through multiple handling facilities and then into stores), and legendary portion control variance (totally depends who makes your burrito... it may weigh a 1/2 lb, or 2lbs... a total coin flip). It's difficult to scale these complex organizations - why make it harder on yourself? Learn from other people's mistakes and try not to repeat them. foisting large insurance bills onto Tesla customers because Tesla couldn't design their car to be repairable, even by Tesla themselves - doesn't seem fair either.