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April 16, 2018

‘Humans are underrated’ — Musk admits that Tesla was too reliant on robots

by John_A

In a recent interview with CBS, Elon Musk discussed the future of Tesla and the problems the manfucturer was having producing enough Model 3 vehicles to meet growing demand. One of the issues that Musk touched on was the company’s over-reliance on robotics, saying that they had slowed the company down.

“Yes, they did … ” Musk said in response to questions regarding whether or not the company’s use of robots delayed production. “We had this crazy, complex network of conveyor belts … And it was not working, so we got rid of that whole thing.”

Musk followed up these statements on Twitter by admitting that “humans are underrated.”

Yes, excessive automation at Tesla was a mistake. To be precise, my mistake. Humans are underrated.

— Elon Musk (@elonmusk) April 13, 2018

Tesla has been under an increasing amount of pressure due to its failure to produce enough units of the Model 3 to meet demand. While Musk did admit that the company’s over-reliance on robots had led to delays, he said that customers should not be worried about getting their cars. He said it might take up to nine extra months, but customers would get them.

“There shouldn’t be a question mark as to whether somebody’s gonna get their car, it’s just, yes, you’ll definitely get your car,” Musk told King. “It’s gonna be six to nine months longer than expected.”

Musk also pointed out that three of those months have already passed, so customers don’t have too much longer to wait. That being said, he did admit that some customers had canceled their orders. He believes that most of them did so simply because they needed a car right then and there, and Tesla didn’t have it.

The low production levels have taken a toll on Tesla’s stock. Last month, share prices fell from $340 t0 $252, but things are improving according to Musk, who noted this in a tweet to the Economist.

The Economist used to be boring, but smart with a wicked dry wit. Now it’s just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money.

— Elon Musk (@elonmusk) April 13, 2018

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