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With all those battery innovations(at the research stage) we keep hearing in the news, how can building a huge factory be considered a stable investment ? at so
by minthd 12y ago
With all those battery innovations(at the research stage) we keep hearing in the news, how can building a huge factory be considered a stable investment ? at some point in the future,won't something come that will need different manufacturing methods ?
- cschwarm 12y agoIn my opinion, something like the Gigafactory only makes sense in the context of (expected) innovations. The usual way to lower costs is to specialize, and to have a diverse network of suppliers. The Gigafactory is meant to do everything under one roof, so it's the opposite of specialization (and low costs). The advantage of something like a Gigafactory, however, is the ability to coordinate actions in-house. Transactions costs are lower, and Tesla is able to "upload" innovations rather fast (compared to a diverse specialized network of companies).