“Tesla’s Resource Allocation and Performance Strategy”

Tesla has revealed it has two Optimus bots working autonomously on its factory floor. In a recent post on X, the official Tesla shared a lengthy list of what it had achieved under Elon Musk’s leadership since 2018. The list ran year-by-year, noting important milestones for the company, such as the unveiling of the Cybertruck in 2019, hitting record annual revenue of
$53.8 billion and record annual profit of $5.5 billion in 2021, and marking one million Tesla vehicles on the road in Europe in 2023. The very final item on the list, from this year, is: “Deployed two Optimus bots performing tasks in the factory autonomously.”

Although no details of what the Optimus bots are working on have been revealed, just last month Tesla shared a clip of one of the robots performing a ‘useful’ task at a Tesla factory. In the video, Optimus was tasked with sorting out battery cells and could also be seen taking a stroll around the office, while human workers looked on. According to Tesla, the Optimus robot uses an FSD computer to run an end-to-end neural network trained to sort the battery cells. The computer uses only 2D cameras, hand tactile, and force sensor data to generate the necessary joint movements for the task. Tesla has previously shared footage of the humanoid robot performing tasks like squatting, dancing, and boiling an egg. However, not everyone who saw the recent clip was wowed by the bots, with some commenting on how slowly the robot moved.

In April, Musk told investors that Optimus would be able to perform factory roles by the end of this year and could go on sale as early as 2025. He’s previously suggested that the bots could go on to become a bigger seller for Tesla than its cars. “I think Tesla is best positioned of any humanoid robot maker to be able to reach volume production with efficient inference on the robot itself,” he shared.

Musk added, “Optimus stuff is extremely underrated.” Tesla is not the only player in the humanoid robot game. Nvidia has also unveiled fully humanoid robots set to rival Tesla’s Optimus robot. Then there’s OpenAI which has joined hands with Microsoft, Nvidia, and Jeff Bezos to develop human-like robots.

Source: https://supercarblondie.com/tesla-deploys-two-optimus-robots-to-work-in-its-factory/

Based on the case study, answer the following questions:

1. Elaborate ONE (1) justification to rationalise how Tesla’s deployment of Optimus robots aligns with its overall resource allocation strategy. [Important Notes: Students MUST support their answers (the justification to rationalise) with relevant reference(s). Answers MUST NOT exceed 80 words]. (5 Marks)

2. Identify ONE (1) potential long-term financial implication from the deployment of Optimus robots and explain your answers. [Important Notes: Students MUST support their answers (the explanation part) with relevant reference(s). Answers MUST NOT exceed 80 words]. (5 Marks)

3. Considering the concern about the slow movement of Optimus robots, determine ONE
(1) performance enhancement strategy that could be adopted by Tesla to improve their market competitiveness. Rationalise your answers. [Important Notes: When rationalising your answer(s), you MUST support it with relevant reference(s). Answers MUST NOT exceed 80 words]. (5 Marks)

4. Elucidate how Tesla’s introduction of humanoid robots, impact labour resource allocation in its manufacturing facilities. [Important Notes: Students MUST support their answers with relevant reference(s). Answers MUST NOT exceed 80 words]. (5 Marks)

5. Explain ONE (1) operational challenge that could be encountered by Tesla in scaling up the deployment of Optimus robots and how should the company mitigate the operational challenge. Justify your answers. [Important Notes: When justifying your answers, you MUST support the answers with relevant reference(s). Answers MUST NOT exceed 80 words]. (5 Marks)

Answers to Above Questions on Performance Strategy

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