Tesla To Produce 'a Few Million' Electric Cars a Year By 2025
HughPickens.com writes: Reuters reports that Elon Musk, speaking at an industry conference in Detroit, said Tesla may not be profitable until 2020 but that Tesla plans to boost production of electric cars to "at least a few million a year" by 2025. Musk told attendees at the Automotive News World Congress that "we could make money now if we weren't investing" in new technology and vehicles such as the Model 3 and expanded retail networks.
Musk does not see the Chevrolet Bolt as a potential competitor to the Model 3. "It's not going to affect us if someone builds a few hundred thousand vehicles," said Musk. "I'd be pleased to see other manufacturers make electric cars." On another topic, Musk said he was open to partnerships with retailers to sell Tesla vehicles, but not until after the company no longer has production bottlenecks. "Before considering taking on franchised dealers, we also have to establish (more of) our own stores," said Musk adding that "we will consider" franchising "if we find the right partner." Musk did not elaborate, but said Tesla "is not actively seeking any partnerships" with other manufacturers "because our focus is so heavily on improving our production" in Fremont. Last year, Tesla delivered about 33,000 Model S sedans and said the current wait for delivery is one to four months. Tesla has already presold every Model S that it plans to build in 2015. "If you ordered a car today, you wouldn't get it until 2016."
Musk does not see the Chevrolet Bolt as a potential competitor to the Model 3. "It's not going to affect us if someone builds a few hundred thousand vehicles," said Musk. "I'd be pleased to see other manufacturers make electric cars." On another topic, Musk said he was open to partnerships with retailers to sell Tesla vehicles, but not until after the company no longer has production bottlenecks. "Before considering taking on franchised dealers, we also have to establish (more of) our own stores," said Musk adding that "we will consider" franchising "if we find the right partner." Musk did not elaborate, but said Tesla "is not actively seeking any partnerships" with other manufacturers "because our focus is so heavily on improving our production" in Fremont. Last year, Tesla delivered about 33,000 Model S sedans and said the current wait for delivery is one to four months. Tesla has already presold every Model S that it plans to build in 2015. "If you ordered a car today, you wouldn't get it until 2016."
If the current wait is one to four months... considering it's January 2015 right now... and if I ordered one now I wouldn't get it until 2016...
Time travel?
I've fallen off your lawn, and I can't get up.
We were hoping we found a giant killer, a veritable David against Goliath, a David on our side. Now you eh, tu! Elon? Don't. Break their back. Bring national direct auto buying directly from the manufacturer to the nation that deserves it. It is long past time, we let the free markets to be free.
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
Yeah, I can see why Musk would like to see a few more EVs out there. Heck, I can see him wanting them to use his charging technology.
More manufacturers making and selling electric cars helps justify the creation of more infrastructure, which increases the value of the cars he sells without costing Tesla money.
If the extra cars means that businesses, restaurants, and stores 'all' install a charging point, that's a good value boost.
Also, 'current wait' is 4 months, yet if you ordered one today you wouldn't get it to 2016? That's a 12 month wait. I can understand why they don't want to consider franchising yet if that's the case. Still, I consider the idea that Musk is even willing to consider franchising/dealerships to be a massive change in stance. Previously he pointed towards being massively against the idea. Maybe he's starting to hit organizational issues?
I don't read AC A human right
Typo... the link says it's the Model X SUV that's presold-out for 2015. So you only have to wait months for an S Sedan.
What does Elon know that we don't know in regards to oil prices? He ain't selling that many cars if oil stays under $50 a barrel, the demand just won't be there.
I'll be buying a Tesla for my next car, whether or not gas prices go back up. It is worth several thousand dollars to avoid the damn car dealer experience, and at the moment Tesla is the way to do that.
I have tremendous admiration for Elon Musk and Tesla, but ramping up production to that of a top five or even top ten automobile manufacturer is almost unrealistically ambitious. Building up the supply chain for the materials, hiring and training workers, setting up factories, etc... these are things that take years to do even under ideal circumstances. The fact that they're having difficultly with numbers and quality at such a small batch just makes it more complex.
I've also talked with a few industrial engineers that specialize in this type of manufacturing, and at least based on the videos released, the way his assembly lines are setup right now are not going to scale up well. For him to meet his production goals, he's going to have to completely redo the way he does fabrication and final assembly. Should also be pointed out too that the NUMMI plant they're operating out of produced at its peak 6,000 vehicles a week: a healthy number, but an order of magnitude lower than his goals. He will have to expand, probably build more factories, and that will take time. Again, these are just the issues of the factory, it doesn't even go into the other issues.
Must sell only Tesla/EVs: Probably could. However, the dealer could also simply set up a second LLC right next door and open another. IE: Blarmy's Tesla dealership is right next to Blarmy's Honda dealership.
Retain the right to sell directly: Very unlikely - most state laws, even those that don't require an 'independent' dealer, forbid the manufacturer from directly competing with the dealerships for customers.
Standard automakers: See the state non-compete laws, laws requiring dealers(Texas), and yes, a very big chunk of history with already signed agreements.
Clean Slate: It's already shaken out in many states that except for already built sales points, they're not allowed to expand without going to dealers. In other states the only reason they're allowed to sell directly is indeed because they don't have any dealerships(in state, at least).
Defense against NADA: Right now it's only real power is continuing to boycott them.
I don't read AC A human right
I love the idea of electric cars, and Tesla is on my "lottery win" shopping list. With that said, if you apply hard numbers these cars do not make any sense at the current gas prices. Tesla's battery mega factory may change these numbers, but as of right now electric car premium substantially overshadows any and all gas savings. This is even before we start talking about hidden costs of scaling electric car ownership up.
As to mass-producing these cars, I have doubts that infrastructure could handle mass-adoption. The key issue is time it takes to charge, with gasoline one fuel pump can get driver in and out under 5 minutes. With charging stations you need 30 minutes or so. So Tesla has to build lots and lots concurrent "charging slots" and then develop congestion-mitigating techniques at the popular sites. Then they will have to invest into electric grid to support massive loads incurred by charging stations (ironically, the cost effective way to do this is by building 'load balancing' natural gas generators). Then they will have to mitigate inevitable increase in electricity costs due to supply&demand curves. Imagine what will happen to electricity costs during peak usage when everyone runs AC AND charges electric cars at the same time!
So we have following major roadblocks: a) cost of batteries b) cost of expanding charging stations network c) cost of electric grid infrastructure upgrades d) cost of accommodating increased load during peak times . Could all of these challenges be met? Sure, but it is unlikely achievable without public funds.
Chevy just introduced a concept car called the Bolt. http://cleantechnica.com/2015/...
Not to mention that Musk still has that 4 month waiting period for every car Tesla can produce, so no, the AC's just being butthurt that richer people can get a Tesla before him. Musk is intending to release a $30k car just as soon as he can provide batteries for them(see gigafactory). Battery prices at 1/2 to 2/3rds of what they are now should really help there. I've seen some articles that suggest that Tesla is already producing batteries far cheaper per kWh than any other maker.
I don't read AC A human right
Either a Tesla C or a Chevy Bolt.
Or maybe the iBMW.
Not picky. Electricity is dirt cheap and 100 percent green at both my workplace and my home.
(and before you coal and fossil fuel guys criticize it, I mean that literally, I own solar PV cells on the Seattle Aquarium and pay for 100 percent Green electric through the 100 percent level at Seattle City Light, yes I know Eastsiders in Bellevue pay for 1/3 coal but they're deadenders, Seattle rules!)
-- Tigger warning: This post may contain tiggers! --
Does that mean that when they finally made a car with comfortable seats, it sold out? :)
(My main problem with buying an S is that the seats actively hurt my back. Maybe because I'm 6'4. I don't know.)
Also, does Tesla need systems developers? :)
And long for city with only pedestrian and bicycle paths and clean mass transit. Cargo and shipping is handled by an automated cart network hidden from public view.
I can dream :(
Which makes GM's claims about the Bolt very suspicious.
"Tesla To Produce 'a Few Million' Electric Cars a Year By 2025"
If man is still alive, if woman can survive...
Don't blame me, I voted for Baltar.
Which makes GM's claims about the Bolt very suspicious.
Not really if you figure that GM's planning to use the Bolt like it did the EV1: In order to meet CAFE requirements. If not rolled back, that could mean subsidizing each Bolt to the tune of several thousand dollars because you need to sell 1 Bolt for every 20 Yukons or some such.
I don't read AC A human right
when they bother to make enough to matter get back to us; clue: even they say it wont be for sale until 2017
I agree with everything you say.
He's also making a lot of assumptions:
You are both making the mistake of trying to find the used car equivalent to the new car you bought.
Nope. My main requirement was 'Truck, capable of towing X', along with a few other requirements/desires. I looked at both new and used models, not to mention the paper for 'for sale by owner' vehicles. New happened to not only fit my desires list better, but they offered a better price as well.
A new car is just about 100% of the time a bad financial decision
Indeed, very dogmatic. Me, I broke out the spreadsheets. $10k@5% = $500/year. $10k@8% = $300 more, and my loan was for more than $10k.
Penny wise, pound foolish. I already said that the NEW truck worked out to be cheaper than a used one. My situation may not be the same as most, but it was my situation. Probably because most people who buy trucks like mine don't willingly give them up within a decade.
Cars should last over 250K miles.
That requires doing the proper maintenance, including during their formative(new) period. Guess what people who ditch their cars after 2-3 years often don't do? My Tacoma is coming up on it's 80k maintenance period, and it's still chugging along great. I know it's gotten every oil change with quality oil, that the fluids have been checked, etc...
If you don't have enough cash on hand for a cheap used car your emergency fund is non-existent and you are screwing up your personal finances badly before you even make the mistake of buying a new car and hanging a car payment millstone around your neck.
Cheap used car isn't a reliable used car. All things being equal, my next vehicle WILL be purchased with cash.
The disposal value of a cheap used car is less than the purchase&outfitting cost on it if you're not going to keep it. It worked out cheaper to just get the loan.
I don't read AC A human right
The Chevy Bolt is should be a 200 mile $30,000 electric car. The price estimated was, after the $7500 tax credit. Elon Musk said yesterday, that the model 3's price tag of $35000 is before the $7500 tax credit. Making the model 3 about $2500 cheaper.
Of course this is all speculative at this point. Chevy's car is only a concept car, and as we could see by looking at the volt concept may have nothing to do with the actual production model. The same can be said about the model 3 which we haven't even seen concept drawings of
once more into the breach