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Tesla Factory Racing To Retool For New Models
An anonymous reader notes this story about what Tesla will have to do in order to double production every year for the next several years as Elon Musk intends. "Having just reported a $107.6-million fourth-quarter loss that sent its stock tumbling, Tesla Motors Inc. intends to double vehicle production in the next year as it finally introduces its Model X sport utility vehicle — after about two years of delays. Meanwhile, Tesla is racing to finish the design of its Model 3, the "affordable" Tesla, expected to sell in the $30,000 range after government subsidies. Musk's company is chasing General Motors Co., which plans a 2017 release of its all-electric Bolt, with a similar price and 200-mile driving range between charges."
And peddling too... ;-)
Seriously, we've heard this gripe before, and gotten over it just fine. They used to complain that it couldn't be done. Then the Roadster proved them wrong. Then they said it couldn't be repackaged for the "mainstream" luxury market, until Tesla started shipping the Model S. Then they said Tesla would never be able to ramp up Model S production to meet demand, until... well, they're still trying to catch up with the backlog of orders, but they are making progress.
And simultaneously they are also (finally) bringing the Model X to market and investing heavily in the Giga Factory to enable high-volume production of ALL electric vehicles, especially their own Model 3.
FTFA: "Tesla has lost its luster, he said, and could soon lose credibility."
Any investor who is so short-sighted as to sell off Tesla shares based on the incidental losses last quarter had no business buying those shares in the first place. Elon has been crystal clear about his plans for Tesla's development right from the beginning. If you're freaked out about strict GAAP losses at such an early stage of growth, then you don't have a realistic understanding of how such large (huge) capital-intensive enterprises bootstrap themselves. Such investors were just looking for a short-term capital gain, and wet their pants at the first sign of slow-down in Tesla's meteoric rise. Good riddance to them.
Bottom line: Tesla has a multi-thousand-customer waiting list for the Model S, and 20K reservations for the Model X... If you do the math, that's a couple BILLION in pent-up demand for a product that only Tesla currently provides. And lucky for them, they haven't even built those factories yet. So unlike the "major players" in the market, they don't have to "re-tool"... they're building from scratch, which gives them an advantage at least as big as the disadvantage you claim.
XML is like violence. If it doesn't solve your problem, you're not using enough of it. --AC
I am currently working as a skilled tradesman in the fremont tesla plant. installing a massive body line that will be able to manufacture 3 body styles. Tesla is paying upwards of 12 million to get this line finished by fall. So they can ramp up production. Anyone that says it won't happen should take a tour of the plant on Wednesdays. The new line is massive and we are doing our best to finish it.
The cost of the car is the combination of the purchase price, and the price of fuel, maintenance over the life of the car.
The "average American" spends $3,000 per year on gas. That is $30,000 over ten years. Tesla supercharger stations are free. And, electricity is cheaper than gas.
That Tesla will never need an oil change.
Interestingly, ignoring the recommended maintenance does NOT void your Tesla warrantee.
Just something to think about.
Just another "Cubible(sic) Joe" 2 17 3061