Maybe The Traditional Auto Makers Know What They’re Doing After All
In a surprising admission this week, Musk said that he was open to merger talks with the right auto company. After lambasting traditional automakers for years and stating that Tesla was revolutionizing the auto manufacturing world…now this? Ha! This is just too funny.
Tesla was supposed to wow the world with their new approach to making cars. They were supposed to save auto customers from “stealerships”. They were supposed to show how parking lots of inventory didn’t make sense in today’s world. It was all BS.
If Tesla is open to merger talks with a traditional auto maker it means that they are throwing up the white flag. They are admitting that they tried it their way but they just can’t build cars anywhere as well as companies with near 100 years of experience. Which we all knew to be true but Musk wouldn’t admit it until now.
It also can’t hurt that experienced high level professionals don’t want to work for Musk. Tesla has been a revolving door of highly experienced geniuses like Apple’s Chris Lattner who leave because they just can’t handle working with Musk. Maybe Musk has to resort to buying good talent?
It turns out that building cars is harder than Musk thought. Ignoring how the old line automakers did it wasn’t the smartest thing to do. There’s a reason why quality engineers across all industries use the “Toyota Method”. Rejecting this paradigm was probably the height of hubris from Musk. And the most consequential for his poor customers.
If Tesla is open to merger talks with a traditional auto maker it means that they are throwing up the white flag. They are admitting that they tried it their way but they just can’t build cars anywhere as well as companies with near 100 years of experience. Which we all knew to be true but Musk wouldn’t admit it until now.
It also can’t hurt that experienced high level professionals don’t want to work for Musk. Tesla has been a revolving door of highly experienced geniuses like Apple’s Chris Lattner who leave because they just can’t handle working with Musk. Maybe Musk has to resort to buying good talent?
It turns out that building cars is harder than Musk thought. Ignoring how the old line automakers did it wasn’t the smartest thing to do. There’s a reason why quality engineers across all industries use the “Toyota Method”. Rejecting this paradigm was probably the height of hubris from Musk. And the most consequential for his poor customers.
It also turns out that having a countryside dotted with dealerships run by motivated entrepreneurs was a great way to deal with customer service on a large scale. Especially when a company like Tesla has more defects per car than anyone else according to JD Powers.
Another day, another way the Tesla Bears were proven right. Really, except for Tesla’s ability to raise money to escape bankruptcy, the Bears have been proven right at almost every level. Tesla remains over-valued at an exponential level and they are incapable of rectifying a culture of poor quality.
Like a 6 year old kid relinquishing the stove and letting his mom finish the pancakes. Tesla needs some adults to waltz in and take over.
Another day, another way the Tesla Bears were proven right. Really, except for Tesla’s ability to raise money to escape bankruptcy, the Bears have been proven right at almost every level. Tesla remains over-valued at an exponential level and they are incapable of rectifying a culture of poor quality.
Like a 6 year old kid relinquishing the stove and letting his mom finish the pancakes. Tesla needs some adults to waltz in and take over.
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