[j15e]

Optimistically, those over-the-industry-ratio of line investments in automation will be profitable after more models are introduced for the mainstream audience.

Other car makers take no risk in the short term by not investing to automate more final assembly. But 2 times more is not like 10 times more. It is very probable that Tesla will get to have lower production cost & better capacity than other car makers in just a few more years.

Yeah I know they may need more cash very soon and are way under their targeted rate, but Musk still has lot of money in the bank I think?

I always think of Tesla of a company with a more long-term vision than other car makers. I think analysts sometimes just want a lower the price so they can get more of it.

[erk__]

There is a reason most big car makers have not been selling electric cars yet, it is not very profitable, they believe that around 2020 batteries are becoming cheap enough to sell them. And if those companies can produce more and cheaper cars than Tesla they are going to have a problem.

[ggm]

There are only four or five significant old school car manufacturers and India and China bought some technology and are ramping up. The complex non linear investment decisions they have to make are just that: complex. If Tata or somebody succeeds in stealing mindshare and then market share leaving their run until after 2020 could turn out to be as suicidal as investing in cocaine to make the Delorean

[kristianp]

I don't think Musk has that much money in the bank. I think most of his net worth is in his Tesla shares.