Does Tesla Deserve to be The World's Most Valuable Automaker?: Economies of Scale

The video explores the concept of economies of scale, explaining how unit costs decrease as production increases due to fixed cost mitigation, efficiency, and negotiating power. It highlights the benefits of economies of scale, such as reduced variable costs and increased output, but also discusses the challenges, including increased costs at high production levels. The video concludes with a discussion on Tesla's valuation, questioning whether it is a car company or something more.

How does Tesla's production scale compare to that of Toyota, and what implications does this have for their profitability?

What are the potential downsides of economies of scale in production?