MemberSeptember 1, 2021 at 4:39 pm
The other side of the production equation is demand. Forecasting, planning, resourcing, and scheduling production is based on accurately forecasting, tracking, and adjusting to demand. Producing more or less than the demand in any given timeframe is a no-no and either wastes resources or fails to generate expected revenue/margin. Ideally you want both to match (“Just in time – a lean manufacturing concept) but that seldom happens because of all of the variables that you have to juggle.
An example. The Honda Insight Generation 1(Revolutionary at the time because of its aerodynamics, light weight, and electric assist producing unheard of MPG) sold a total of 17,020 world wide from 1999 to 2006 (Average of 215/yr) They planned to sell and sized production for 6,500/yr. An oops for Honda, a well established and successful car company.
I have confidence Aptera will do much better with the demand curve and will build a production capacity to match demand closely regardless of the volume. They will manage production as efficiently as they engineered their vehicle. I believe that demand curve will grow. Maybe not exponentially, but polynomialy.