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Tesla Is A 'Gift To U.S. Manufacturing'

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Tesla Is A 'Gift To U.S. Manufacturing'

Trip Chowdhry of Global Equities Research is a big believer in Tesla Motors Inc (NASDAQ: TSLA)'s business outlook and its CEO Elon Musk.

In a research report Monday, Chowdhry argued that Musk and his Gigafactory plan is the "poster child for the new USA manufacturing" and the "blueprint for the modern manufacturing."

Elbowing Aside The Competition

Chowdhry stated that Tesla's "GigaScale" is essential for the USA to retain its manufacturing leadership. Meanwhile, some of the largest and most notable tech companies are falling well short of Musk's vision.

Specifically, Apple Inc. (NASDAQ: AAPL)'s new headquarters in Cupertino, California, is just 2.8 million square feet, while Boeing Co (NYSE: BA)'s Everett factory is 4.3 million square feet.

And Tesla's Gigafactory? A staggering 10 million square feet that boasts the following:

  • Designed for volumetric efficiency.
  • Optimized for density.
  • Twenty (20) percent of workers require similar skills to Apple's chief design officer Jonathan "Jony" Ive but are designing the actual factory, parts and curvature.
  • Another 30 percent of workers are process engineers who are tasked with rethinking every production step using the first principle thinking.
  • A new "Modern Supply-Chain-as-a-Service" thinking powered by Microsoft's Azure Cloud.
  • A tight vertical integration system that provides real-time visibility on supply, zero transportation costs, zero packaging costs and zero tariffs, among others.

Paving The Way For Trump's Dream Come True

Bottom line, due to the factors above the analyst believes that Tesla's Gigafactory is 10 times more efficient than any similar hypothetical factory and is "essential for the USA to regain its global leadership in manufacturing."

Latest Ratings for AAPL

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Dec 2019MaintainsOverweight
Nov 2019ReiteratesBuy
Nov 2019MaintainsOverweight

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