History was very unkind with “Bigger is better” schemes. There is an ideal size where cost and the derived benefit are at an equilibrium. Build too big and you lose flexibility. So far, Tesla has not cut a return and as the ball needs to keep rolling, the bubble needs to be inflated to ever more grotesque proportions. This one will hurt big time when it pops.
What Tesla TSLA, -0.12% has built in the Nevada desert is impressive. Five years ago, the Gigafactory was merely an expanse of rocks and dirt, CEO Elon Musk bragged to shareholders on June 11.