Since 2017, Tesla’s capital expenditure per incremental unit of capacity has improved from ~$84,000, when the Model 3 was ramping, to ~$7,700. While these improvements indicate that Tesla could continue to increase margins, the more important takeaway is that capital no longer is a bottleneck limiting its growth. Instead, Tesla should be able to gr... See more

To achieve Model 3 volume production, Elon spent 3 years sleeping on the factory floor, in the trenches, with his team and workers. “It was the longest period of excruciating pain in my life […] but it had to be done, or Tesla would be dead” “I think at this point, I know more about manufacturing than anyone currently alive on Earth” – Elon Musk

Tesla doesn’t want to limit the scale of battery manufacturing to the number of cars it can produce. So Tesla is selling its batteries to other car manufacturers. This is pretty astonishing. Tesla has developed a material technology advantage over its direct competitors. Rather than using that to differentiate its product, Tesla is selling that tec... See more