Elon Musk has emphasized that Tesla's greatest advantage would come from fast-paced innovation in manufacturing. Tesla Investor Day
In an effort to improve manufacturing prowess, Tom Zhu, head of Tesla’s China operations, said the company follows a process at each of its factories to “question, delete, simplify, accelerate, [and] automate” at every opportunity. In essence, Tesla examines each step in its manufacturing process and cuts out anything non-essential prior to working out how to speed up the process and automate it.
Looking to the future, Elon Musk noted that “affordability” was the biggest barrier to Tesla reaching a far bigger market. Before Tesla’s recent price cuts for its electric vehicles, he said, “we weren’t sure about what the price elasticity of demand was for Tesla … [but] we found that even small changes in price have a big impact on demand — very big.”in China, Zhu confirmed Musk’s point by noting, “we generated huge demand, more than we can produce really.
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