Elon Musk Automated The Assembly Production of Tesla Cars

Has used the sale of stocks of their main way of financing its activities. In the first semester of 2017 shares went up 65%, which means that Tesla’s share is more valuable, and it becomes more attractive for investors. Another financing strategy is selling bonds. In 2017, Tesla raised $1.5 billion by issuing bonds (para. 7-13). Tesla’s strategy to raise funds has made them create bigger debt, which can become a burden in the future because instead of profits being used to be reinvested, they must be destined to pay back shareholders and bond owners.

Tesla is said to run like a software company – implementing changes and upgrades to their computer systems with an agile approach. In addition, some of the most innovative mechanisms Tesla uses for vehicle assembly are the upwards of 570 Fanuc and Kuka robots – custom pieces of equipment used solely for the newer model vehicles, such as the Model X. (Lambert, 2017) Synchronically, 15 robots could be working on a vehicle at a single time.

While technological advancement has allowed Tesla to have eliminated excess assembly time with their robots, critics argue that Elon Musk has over-automated Tesla’s vehicle assembly production. Many other car manufacturers have the approach of perfecting the process first, utilizing humans, and then bring in robots and automation for replacement; Tesla skipped perfecting the process first and went straight to automation.

In 2015, Tesla was named at the top of The World’s Most Innovative Companies list, published by Forbes’s. (In 2017, Tesla’s research and development spending exceeded .

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378 billion. Although this is only a fraction of the amount of General Motor’s $7.3 billion research and development expenditures, Tesla still spent approximately 12% of its total revenue on research and development. As of early 2018, Elon Musk has an established plan to create a research and development enter in Athens, Greece. Three of Tesla’s top designers graduated from the National Technical University of Athens, and by opening a research and development center in Athens, Greece Elon Musk has illustrated the capacity for showing a vote of confidence for the debt-stricken country. (Smith, 2018) A few reasons Tesla has been known to be one of the most innovative companies is because of clear massively transformative purpose (MTP), whereas other companies aren’t so precise and direct. In addition, having an outspoken leader such as Elon Musk also garnered a reason as to the current innovation of Tesla.