Why Tesla is in maker's Hell
The Tesla story represents the biggest tech investment opportunity over the next five years as cars transition to electrics, but the EV maker still has some way to go and is currently in ‘manufacturing hell’, according to a report from research firm Loupventures.
The firm points out that the bear case on Tesla is built around the belief that the company will not be able to ramp up production in a profitable way, and eventually run out of money. But it believes Tesla is actually taking the right steps to prevent a cash crisis by metering some of its investments.
Currently, Ventureloup is lowering its Dec-17 Tesla Model 3 deliveries from 5,400 to 2,500, while for Mar-18, it is lowering deliveries from 35,000 to 10,700.
And while Tesla is struggling to produce the Model 3 in numbers, it firmly holds on to pole position in EV and autonomy. “In 10 years we expect three to five companies will own the market for EV and autonomy, compared to eight major auto companies today,” the firm says. Of the three to five winners of the future we expect two to three to be tech companies.”
Tesla’s real competition in autonomy is Waymo, which has been making progress and is now testing in several states. “But Tesla has all of the hardware (they think) being added to their vehicles today for autonomy. No other car manufacturer makes a claim close to that.”