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$50M worth of Tesla equipment sits unused in a Wheatfield warehouse

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Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#111
post #45
post #39

Earlier quoted context omitted.

I think the point is tanks in general have little use in the vast majority of modern American battles.

Is that really true when modern American battles seem to always evolve into endless occupations?

They should be building something that more closely resembles an armoured RV with a gun. Perfect for achieving and maintaining occupation.

Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#112
post #78

Earlier quoted context omitted.

You imagine healthy companies just having 17% of total investment sitting around in warehouses because they might need it someday? I encourage you to read up on Lean Manufacturing and just-in-time delivery, which swept the US in the 1980s. Even to an MBA, over-ordering gear by $50 million is pretty obvious waste.

>You imagine healthy companies just having 17% of total investment I imagine healthy companies keep enough manufacturing parts to be able to repair/replace/scale as needed. Particularly a company like tesla which is well known for scaling rapidly. > I encourage you to read up on Lean Manufacturing and just-in-time delivery, which swept the US in the 1980s. These are only efficient when you are pushing all your extern…

Your first bit is just tautological. Yes, healthy companies are healthy. The questionable part is your notion that 17% of investment is healthy.

As to the bit about Lean Manufacturing, you're just wrong. Toyota in particular is known for close relationships with suppliers where they are well supported and trained in Lean approaches as well.

Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#113
post #13

I'm slightly confused; is the story that the state of New York bought equipment for Tesla worth $300 million dollars, and a sixth of it is currently unused (meaning five sixths of it is being used currently)?

The history of the Buffalo "gigafactory" is rather sordid... In a nutshell, Tesla and its subsidiaries made large employment and economic growth promises to the state of NY in exchange for massive subsidies (almost $1B total). The state wanted to stimulate growth in an economically depressed region, but those growth expectations have not materialized at all. And now, at least some of the NY state taxpayer financed eq…

How much of these subsidies are cash, and how much are tax breaks? Cash subsidies from taxpayers are bad, I agree, but at least with the tax breaks, the taxpayers are not worse off: if the alternative is no factory at all, then they don't lose anything on the tax breaks, because that tax revenue wouldn't have had existed anyway.

Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#114

Earlier quoted context omitted.

https://www.govliquidation.com/ Looks like the site moved to https://www.go-dove.com/

Have you used that site in the past? I see a lot of listings saying something like “24 ea” to describe a lot of 24, but can’t find what the ea means. I’d think it might mean “bid is per item,” but that makes no sense (I’m seeing bids at multiples of what the individual items are worth).

Exactly. I look at a lot like this:

https://www.go-dove.com/asset/65/17113

And see monitors of various sizes and vintages, listed as "24 ea". Do you win all the monitors if you win, or is it first come first serve for the 24 highest bidders?

I'm guessing it's the former, but it's not like any of the FAQs on the site are going to clue you in. Instead they tell you that their web guys don't know how to scrub input properly:

  Message received:

  "Your bid is not in the correct format"

  This means you have entered a dollar sign, or comma. 
  Here is an example: (Correct) 1000 (Incorrect) $1,000.00
I found another doc that may have the answer:

2. Items that have no tag number and are of identical kind and condition may be grouped on one SPMD-1A. Example (25 ea. chairs, wood w/arms).

https://publications.tnsosfiles.com/rules/0690/0690-02.pdf

Suggests that you are bidding on all items with one bid--if you win you get all of them.

Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#115
post #101
post #97

Earlier quoted context omitted.

Why would have Elon Musk been involved? Did he actively participate in SolarCity management before the acquisition?

Yes. Solar City was a Musk (nee Rive) family business from the start. https://en.wikipedia.org/wiki/SolarCity#History > SolarCity was founded in 2006 by brothers Peter and Lyndon Rive, based on a suggestion for a solar company concept by their cousin, Elon Musk, who is the chairman and helped start the company. https://en.wikipedia.org/wiki/Lyndon_Rive > Rive is a cousin of SolarCity investor and entrepreneur Elon Mu…

> (That means that Rive and Musk are genetically half-siblings.)

Apropos of nothing, I'm now imagining a world with forms of address based on the natural logarithm of shared genetic material.

Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#116
post #41

Earlier quoted context omitted.

Reminds me how the US continually produces tanks despite the armies recommendations, to the point where we have enough tanks to essentially fight WW3 with purely tanks and still have some left over, just so some congressmen can keep jobs in their constituency. At least that was the situation in the 2000s, no idea if that wackiness is still continuing

The production of armaments is a bit of an economic anomaly, to be honest. All businesses, including arms manufacturers, require a constant flow of business in order to cover their fixed costs and remunerate their investors (debt holders and shareholders). If governments only order weapons when they need them to fight a war, then the arms manufacturers would shut form at the end of a conflict and would take ages to “…

And what happens to those stockpiles...do they get smuggled around the world, feeding the arms race?

Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#117
post #13

I'm slightly confused; is the story that the state of New York bought equipment for Tesla worth $300 million dollars, and a sixth of it is currently unused (meaning five sixths of it is being used currently)?

The history of the Buffalo "gigafactory" is rather sordid... In a nutshell, Tesla and its subsidiaries made large employment and economic growth promises to the state of NY in exchange for massive subsidies (almost $1B total). The state wanted to stimulate growth in an economically depressed region, but those growth expectations have not materialized at all. And now, at least some of the NY state taxpayer financed eq…

This is just not accurate. The Buffalo plant economic stimulus package had a clawback provision if Tesla doesn't meet employment milestones. They have been meeting those milestones and so will not have to pay the fee: https://buffalonews.com/2020/02/13/tesla-looks-like-a-good-b...

I know people want to make this into some corruption scandal (blaming it either on the state or on Tesla or both), but the state did their job by putting these employment requirements in their contract WITH PENALTY, and Tesla is doing their job by hiring enough people to avoid the penalty.

What's really the problem, here? 5/6ths utilization of capital equipment seems pretty good, particularly in a fast evolving field like solar power (where things like bifacial panels and Tesla's integrated solar roof weren't really a thing when the deal was first signed).

Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#118
post #37

As usual, Tesla's involvement in the original deal is reported incorrectly. Tesla had no involvement in the original deal. Nor did Solar City. In fact, Silevo did the deal, was then acquired by Solar City which was then acquired by Tesla.

Well, let's be clear about the timeline. Silevo was planning a factory in upstate New York, and the State of New York was planning to invest $225 million in that project. In June 2014, SolarCity agreed to acquire Silevo. Three months later, with Elon Musk's personal involvement, the Cuomo Administration agreed to increase their investment to $750 million, in a much-expanded deal. Construction of the factory began und…

Interesting info. If they got 750 million statewide investment, the factory used $700 million of it then? 50 mil left over? I hate state investments in businesses via direct or tax cuts. But this couldn't be worse than Washington state's massive tax cuts for boeing, which proceeded to move more production and jobs to their east coast factory right after they got the tax brake.

Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#119
post #115
post #101

Earlier quoted context omitted.

Yes. Solar City was a Musk (nee Rive) family business from the start. https://en.wikipedia.org/wiki/SolarCity#History > SolarCity was founded in 2006 by brothers Peter and Lyndon Rive, based on a suggestion for a solar company concept by their cousin, Elon Musk, who is the chairman and helped start the company. https://en.wikipedia.org/wiki/Lyndon_Rive > Rive is a cousin of SolarCity investor and entrepreneur Elon Mu…

> (That means that Rive and Musk are genetically half-siblings.) Apropos of nothing, I'm now imagining a world with forms of address based on the natural logarithm of shared genetic material.

Isn't this roughly how people talk about their relationship with Native American tribes? They don't do the log2 math, but they're happy to hit you with the fraction.

Re: $50M worth of Tesla equipment sits unused in a Wheatfield warehouse

#120
post #45

Earlier quoted context omitted.

Is that really true when modern American battles seem to always evolve into endless occupations?

They should be building something that more closely resembles an armoured RV with a gun. Perfect for achieving and maintaining occupation.

You're describing the Stryker Combat Vehicle, and it has a remotely operated weapons turret. However, it can only carry 9 infantryman (in addition to its crew).

https://en.wikipedia.org/wiki/Stryker

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