The ongoing fall of Tesla stocks and why automation and AI aren’t replacing humans anytime soon – March 4, 2019,
Tesla Stock continues to experience volatility and the main reason behind it revolves around automation. Tesla is having a hard time figuring out how to make a quality car inexpensive. If you’ve been following the Tesla story you’d know that the current problems facing Tesla revolve around finding an efficient automation model. Paying humans to do things especially in California is expensive and the moment those government subsidies are completely removed from Elon Musk, Tesla will become a financial sinkhole. Many will argue that the mistake Tesla made was building their Cars in California, however, I think it could be an advantage for them if Musk is successful.
The Tesla inside and out is a beauty, but in the modern economy you’re punished for producing quality, the goal of Tesla is, of course, to be a global leader in electric cars, while most in the political Left would rather use the power of the government to enact climate change, Elon instead used the power of the mind to manufacture change. The problem, however, is that because Leftism, has taken over western culture, deflation in prices isn’t allowed anymore and therefore when you’re building a manufacturing business in the modern era, you’re in a race to find an efficient way to automate.
Because Tesla is taking the path least traveled Elon is pretty much making it up while he goes along. He sets an objective and tries to meet it. Now my issue with people who believe in climate change is they also believe in welfare and price controls(btw I consider minimum wages a price control). The truth is what’s making Tesla uncompetitive is Elon’s inability to use the free market, the subsidies for the Tesla exist because regulations in the U.S economy make a lot of manufacturing businesses bad investments.
So what comes to my mind is eventually Tesla no longer being an American company. I’m sure I’m not the only person who sees this. German cars have history on their side, they’ve been around longer if one BMW model doesn’t sell another will cover its shortfall, Tesla currently doesn’t have that luxury, which is why it’s basically moving backward, starting off with the higher end cars and now making its way down to the lower end models. In the end, I suspect Tesla will be a success no matter what, it’s just that I’m not entirely sure what their long term success will look like. For a person like me who wants a more robust energy economy, my dream scenario would be hyper-deflation which would allow us to remove price controls from every sector of the world economy.
The barrier to entry is too high for everything and it’s stunting the growth of the planet, I also have a huge problem with the financial education being taught at most public schools, obviously, there’s a lot I would change about economics if I could because the reality of the matter is if the price of labor wasn’t so high in order to pay for welfare spending, the entire planet would be shifting to electric cars, it’s not even to say that Gas powered cars wouldn’t exist, it’s just that people would have more options, which would produce more jobs and via apprenticeships create a more aware middle-class which of course is the fuel the world needs to create the next economic boom which will make space travel more common, which of course will equate to a more prosperous planet as we find cleaner fuel sources.
As you can probably tell, the way this world economy is currently structured really annoys me, because the world could be so much richer right now if old politicians weren’t holding onto old world views. AI is too expensive in the modern era, AI would make more sense if the world economy was allowed to deflate, even automation requires mechanics, anytime a new machine is built there needs to be a human present to fix the machine when something goes wrong. Also too often is the case that when a new machine is built the builder inadvertently leaves out an important component that would allow the machine to work more efficiently. Now if humans began doing a task, then the machine would be built around replacing the human, but in the modern era, machines are often made prior to humans even doing a particular task, which is why in Tesla’s case, he’s having to replace certain equipment, when it comes to is attention that the machine isn’t a financial sinkhole.
It’s really sad in my view that global growth is being prevented because people what to repeat ideas that failed in the past.
Tesla stock drops 10 per cent after shortfall in deliveries – CBS
Interesting times ahead.