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by andeka 6160 days ago
If musk can do with his cars what he did with spacex he will be able to produce items for his vehicles himself and overcome the fixed cost dilemma. I recall him making some of the parts for his vehicles in the spacex plant. Most of (90 some percent) of his rockets are made in house, which is why he can undercut orbital, lockheed, and the russians by a factor of 3. Last I heard theyare building a tesla manufacturing plant in san jose. Let's wish them luck.
2 comments

Definitely! I'd love to see a big Tesla plant driving down 101.

It does worry me that if he builds a large portion in house, does it then scale as well as say a Toyota? Is supply chain management somewhere in his background?

I think supply chain management is less of a problem now that a single CnC machine can make a wide range of parts. The goal of any supply chain should be balancing the number of suppliers with the overhead costs. And I think that's been shifting to fewer suppliers for a while now.
If Musk can combine Tesla and SpaceX so I can buy a single stage to orbit roadster that gets 300 miles on a charge for 100k I'd be very happy. I'd even sell my Moller stock.