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Elon Musk On Tesla Rivals' Numbers Says 'Manufacturing Is So Hard' And Companies Have His 'Respect'

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Benzinga
Benzinga
 2021-06-17
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Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk said that companies building things have his “utmost respect” as manufacturing is “so hard.”

What Happened: Musk was responding to a post on Twitter that focused on the planned electric vehicle production numbers of Tesla’s new rivals like Lucid Motors, Aamzon.com Inc. (NASDAQ: AMZN)-backed Rivian Automotive Inc. and Ford Motor Company (NYSE: F).

Lucid Motors is set to go public via the special purpose acquisition company Churchill Capital Corp IV (NYSE: CCIV) in the second half of 2021.

The post noted that the combined production numbers of Tesla’s rivals were less than 10% of the Palo Alto-based company’s 2021 installed capacity.

Why It Matters: Musk has earlier too noted that building prototypes are easy, while production on a massive scale is hard.

In November last year, Musk revealed that Tesla was “about a month” away from bankruptcy just as the Model 3 sedan was readying for mass production. Musk had described the time period from mid-2017 to mid-2019 when the Model 3 ramp commenced as a “production and logistics hell.”

Companies with little experience in car manufacturing are finding scaling up production extremely difficult. In addition, most automakers are also grappling with the ongoing global semiconductor chip shortage this year.

Price Action: Tesla shares closed 0.9% higher in Wednesday’s trading session at $604.87.

Photo by Heisenberg Media on Flickr

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