Tesla’s captain, Elon Musk, thinks that shifting to the “machines that make machine” is the formula by which he can make his company as valuable as Apple.
A report from MarketWatch confirms that three of Tesla’s manufacturing facilities across the U.S. will begin utilizing company’s advanced robotics machinery and software in its highly awaited Model 3. One of Tesla’s manufacturing plant in California, which was capable of producing somewhat 100,000 vehicles per year before being shut down for renovation, will be able to produce as much as five times of the previous count by the end of 2018, after the installment of new machinery, says Musk.
The Tesla CEO also believes that this could well be what is needed in order for the company to move ahead of its competitors for good.
Musk said;
I think this is just going to be a very difficult thing for other manufacturers to copy. I don’t know what to do if I were in their position.
Apple is known for manufacturing most of its products in other countries on contract, and this is where Musk thinks his company may surpass the former by gaining mastery on automation. Tesla also relies on the contract manufacturing for few of its parts, however, the maintenance service of both these companies is very similar, and is provided through walk-in locations and remote digital updates.
Tesla recently revealed its first quarter earnings and it appeared to point to good goings for the company. The company also recently re-affirmed the production debut of its Model 3 this July.
Back in 2015, Musk said;
If we’re able to maintain a 50% growth rate for 10 years and achieve 10% profitability number and have a 20 P/E, our market cap would be basically the same as Apple’s is today. Now, that’s going to require a bit — on the order of $700 [billion].
