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Good article, but the title is a bit misleading on first glance. Comes across like they are "cutting costs" to try to stay solvent or something. The body of the article makes clear it's about redefining how to build an auto factory (at least for EVs), thereby avoiding the traditional high costs of a plant.
The reporter writes the article, and no doubt suggests a title, but the editor decides on the title. That's why there's often a huge disconnect between headline and content.
The reporter writes the article, and no doubt suggests a title, but the editor decides on the title. That's why there's often a huge disconnect between headline and content.
Yes. The editor's motive is so have a sensationalistic headline to generate page views. We don't have such a motivation, so I've changed the thread title to something more boring.
Yes. The editor's motive is so have a sensationalistic headline to generate page views. We don't have such a motivation, so I've changed the thread title to something more boring.
Yes. The editor's motive is so have a sensationalistic headline to generate page views. We don't have such a motivation, so I've changed the thread title to something more boring.
Didn't they have to show a profit for some purpose at the time? Getting the DOE loan?
Anyway, it's easy enough in just about any business to jigger things to show a one-month profit. Simply delay ordering some stuff for a few weeks, and slide a couple of sales from the previous month, and bingo!
Profit is best avoided, for tax purposes only. :tongue:
I believe they had to show a path to profitability and they said they were on that path if it weren't for Model S development which is why they were seeking the loan.
It is somewhat paradoxical that Tesla's potential for profitability was ultimately enhanced by the recession-based challenges in the automotive industry and the resulting availability of an inexpensive NUMMI facility.