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New 'Tent' Assembly Line Is 'Way Better' Than Conventional Factory, Says Tesla CEO (arstechnica.com)

A few days ago, Elon Musk announced a "new general assembly line" made with "minimal resources." As Ars Technica reports, this new tented facility "is seemingly the first phase of an entirely new building, dubbed 'Factory 2.0.'" From the report: The tent is easily visible from the nearby Warm Springs BART station platform. When Ars visited on Monday afternoon, there appeared to be cranes and forklifts moving around the site. We could not easily see inside the long white temporary structure, but there did not appear to be any newly completed vehicles rolling off the lines in the adjacent parking lot. Still, one automotive expert that Ars spoke with said that a new temporary manufacturing facility on the same site as conventional automotive factories was unprecedented in the industry. Dave Sullivan, an analyst with Auto Pacific, told Ars that he wondered what was wrong with Tesla's existing facilities, if Musk decided the company needed more capacity. "It's almost a sign of desperation," he said. "It's a sprint to be profitable in the third quarter." Ars notes that "each tent is 53-feet-high by 150-feet-long -- there seem to be several connected in a long line, mounted with aluminum framing." In a tweet, Musk said: "It's actually way better than the factory building. More comfortable & a great view of the mountains."

289 comments

  1. Tents. by msauve · · Score: 0

    And, they all sing Kumbaya around the campfire on breaks.

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
    1. Re: Tents. by Anonymous Coward · · Score: 0

      Is it possible he has lost his mind?

    2. Re:Tents. by Anonymous Coward · · Score: 1

      And, they all sing Kumbaya around the blazing battery packs on breaks.

    3. Re: Tents. by Anonymous Coward · · Score: 0

      Geniuses are all psychopathic murderers and schizophrenic maniacs, didn't you know that, monkey?

    4. Re:Tents. by haruchai · · Score: 1

      And, they all sing Kumbaya around the campfire on breaks.

      I think they had a campfire marshmallow roast on top of the Gigafactory last fall

      --
      Pain is merely failure leaving the body
    5. Re:Tents. by PolygamousRanchKid+ · · Score: 1

      And, they all sing Kumbaya around the campfire on breaks.

      If they make their production goals, all employees will get their "car maker merit badges".

      To raise capital for Tesla, they plan to go out canvasing selling "Muskscout" cookies . . .

      --
      Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
    6. Re:Tents. by Rei · · Score: 4, Informative

      Congratulations, you're the thousandth immature male to make that joke :P

      Concerning the article, some of this is head-smackingly stupid. E.g.:

      Dave Sullivan, an analyst with Auto Pacific, told Ars that he wondered what was wrong with Tesla's existing facilities

      *facepalm*

      There Is No More Space At Fremont. Something that has been discussed endlessly in the conference calls and at the investor meeting. Tesla applied for a permit long ago to build a new building, but it's still in progress, and meanwhile, they've been filling up Fremont at a rapid clip as they expand Model 3 production alongside the existing S and X lines. They could build a new line in a temporary building, get it up and debugged and running and turning out vehicles, or they could sit around waiting for months (or more) for a new building. Gee, I can't imagine what's the right choice here, hmm...

      The current building (still being improved, but with the line in place inside) is permitted for six months, but given that they've been liking it, it may become permanent.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    7. Re:Tents. by Anonymous Coward · · Score: 0

      You're basically saying that Grimes's boyfriend is discovering the consequences of bad planning, and is fighting them with more of the same. Sure sounds like a winner.

    8. Re:Tents. by LynnwoodRooster · · Score: 1

      NUMMI built about 7,000 cars and trucks per week; Tesla isn't even to that level yet. And Tesla loves to talk about how much simpler EVs are to build than ICEs, so perhaps Tesla simply isn't as space efficient at GM or Toyota - needing the same space to build half the number of vehicles?

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    9. Re:Tents. by Anonymous Coward · · Score: 0

      Thanks for the update comrade Rei. We trust that whatever is going on at Tesla, the media has it all wrong and the accurate picture is the rainbow and unicorns that you're painting.

    10. Re:Tents. by Peter+P+Peters · · Score: 1

      NUMMI built about 7,000 cars and trucks per week; Tesla isn't even to that level yet. And Tesla loves to talk about how much simpler EVs are to build than ICEs, so perhaps Tesla simply isn't as space efficient at GM or Toyota - needing the same space to build half the number of vehicles?

      I think you are confusing simple with small...

    11. Re: Tents. by Anonymous Coward · · Score: 0

      Did he ever really have had one?

    12. Re: Tents. by Anonymous Coward · · Score: 0

      Simpler => fewer moving parts => fewer assembly steps => less space.

      However one doesn't know all components that Toyota made on site vs tesla, although the battery pack is made in sparks, nv, so that should give a lot of space

  2. Better TODAY... by Brett+Buck · · Score: 1

    The temperature topped out at about 75 degrees today. Let's see how much better it is when its 105+.

    1. Re:Better TODAY... by Anonymous Coward · · Score: 1

      No union = no problem.

    2. Re:Better TODAY... by Brett+Buck · · Score: 3, Insightful

      Union or no, you don't increase productivity by having people keel over from heat prostration!

    3. Re:Better TODAY... by Brett+Buck · · Score: 1

      Thanks for that very helpful contribution, posts like this are why slashdot is held in such high regard.

      Kudos, sir.

    4. Re:Better TODAY... by Anonymous Coward · · Score: 0

      He's in the us bro F not C.

    5. Re:Better TODAY... by Brett+Buck · · Score: 3

      He knows that, he's just an asshole.

    6. Re:Better TODAY... by Bruce+Perens · · Score: 2

      I've been in lots of air-conditioned tents. However, any time it gets to 105 in Fremont, you can expect it to be front-page news.

    7. Re:Better TODAY... by Brett+Buck · · Score: 1

      Less than a year ago, as I recall. That's Fremont, same day it was *111* here in Sunnyvale.

    8. Re:Better TODAY... by dgatwood · · Score: 1, Funny

      Considering that the hottest temperature ever recorded on Earth was 56.7 degrees, you're sitting somewhere else. If that's the alleged final destination of trolls who make completely out-of-topic posts, that place has not frozen yet. This is plausible considering that Elon Musk still has weird ideas, politicians still lie, everything seems to be going as usual.

      Whoa, there. If Earth were really only 56.7 degrees, it would be a frozen hell already. I think you mean that the hottest temperature ever recorded on Earth was 331.15.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    9. Re:Better TODAY... by Anonymous Coward · · Score: 0

      Someone pretending to be you a few days ago for your lawsuit story.. Said they had a family computer and looked up porn on it.

    10. Re:Better TODAY... by Bruce+Perens · · Score: 1

      If it's a temporary tent they'll buy AirPac. If it's permanent, normal building air conditioners.

    11. Re:Better TODAY... by Bruce+Perens · · Score: 3, Funny

      Someone pretending to be you a few days ago for your lawsuit story.. Said they had a family computer and looked up porn on it.

      I saw that photo of eight blazing Core i9 CPUs, bathing in heat-sink grease and wet with cooling water, nestled in a motherboard carrying an entire 256 gigabytes of RAM. I'm still panting today!

    12. Re:Better TODAY... by AbrasiveCat · · Score: 1

      Considering that the hottest temperature ever recorded on Earth was 56.7 degrees, you're sitting somewhere else. If that's the alleged final destination of trolls who make completely out-of-topic posts, that place has not frozen yet. This is plausible considering that Elon Musk still has weird ideas, politicians still lie, everything seems to be going as usual.

      Whoa, there. If Earth were really only 56.7 degrees, it would be a frozen hell already. I think you mean that the hottest temperature ever recorded on Earth was 331.15.

      Hmm, you said degrees, so you aren't talking K. I wonder which scale you are using?

    13. Re:Better TODAY... by MightyYar · · Score: 3, Funny

      Since the highest temperature ever recorded was in 1913, but the degree wasn't removed from the Kelvin standard until 1968, I think you are shaky ground here.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    14. Re: Better TODAY... by Anonymous Coward · · Score: 0

      If they are good enough for the Musk, they are good enough for the imm grant children, right, libs?

    15. Re: Better TODAY... by Anonymous Coward · · Score: 0

      Celcius, dudes. Jeesh.

    16. Re:Better TODAY... by Anonymous Coward · · Score: 0

      we use celcius here, but even I know in the US when they say degrees they mean Fahrenheit. In the US they nearly always qualify Celsius by saying Celsius

    17. Re:Better TODAY... by Anonymous Coward · · Score: 0

      If they had money to spend, they'd buy a factory. And better management.

    18. Re:Better TODAY... by SWPadnos · · Score: 1

      Someone pretending to be you a few days ago for your lawsuit story.. Said they had a family computer and looked up porn on it.

      I saw that photo of eight blazing Core i9 CPUs, bathing in heat-sink grease and wet with cooling water, nestled in a motherboard carrying an entire 256 gigabytes of RAM. I'm still panting today!

      Heh - nice :)

      You think that's cute, check out a real computer: the 2123BT-HNR from SuperMicro. Yeah, baby! In 2U, you can get 8x 32-core CPUs, 8TB RAM, and 24x NVMe SSDs. Plus some M.2 boot drives and multi-gigabit connectivity.

      --
      - The Sigless Wonder
    19. Re:Better TODAY... by Anonymous Coward · · Score: 0

      If they had money to spend, they'd buy a factory. And better management.

      which worked out so well for GM & Ford

    20. Re:Better TODAY... by sexconker · · Score: 1

      Any measurable scale can be referred to as being measured in degrees.
      Kelvin is a (nearly) open ended scale that starts at 0 and goes up, up, up (probably to the Planck temperature).

    21. Re:Better TODAY... by Anonymous Coward · · Score: 0

      All American crap is the same, hence the trade deficit.

  3. Didn't they read his letter from yesterday? by Narcocide · · Score: 1, Troll

    "What is wrong with the other production lines?"

    Sabotage, that's what. We've been over this.

    1. Re:Didn't they read his letter from yesterday? by Anonymous Coward · · Score: 2, Funny

      I can't stand it, I know you planned it
      I'mma set it straight, this Autogate
      I can't stand driving' when I'm in here
      'Cause your auto drive ain't so auto stear.

  4. More room for manual assembly? by Pinky's+Brain · · Score: 2

    Didn't they say they tried to automate too much? If so all this room is probably needed to allow more manpower to work in parallel.

    Whatever works.

    1. Re:More room for manual assembly? by Bruce+Perens · · Score: 4, Interesting

      Didn't they say they tried to automate too much?

      I think the real problem is they did it too quickly. Too much means that some things can never be automated. Too fast just means they have to take longer to get it right. Some lines that were made manual are now automated again, as they got the process working.

      The main point of manual labor is that you can speed up by hiring more people. With automation, you have to make the machine actually work before you can scale up by buying more machines.

    2. Re:More room for manual assembly? by thegarbz · · Score: 1

      Welcome to the news by Twitter. We are now left to trying to distill the underlying meaning and rebuild the absent press release all out of a 280 character message.

      Musk said he automated too much. What does that mean? Who knows. Maybe too many robots for the number of people too look after them. Maybe too many design decisions for robotic assembly caused problems in car assembly. Maybe he automated things he shouldn't have.

      The world of production problems is far more complicated than a 280 character limit can explain.

    3. Re:More room for manual assembly? by Rei · · Score: 4, Interesting

      Musk said he automated too much. What does that mean? Who knows.

      Um, everyone who listens to the conference calls and the investor meeting knows? Just because you don't know something doesn't mean that nobody does :)

      You want an example? Flufferbot. There's a loose fluff used in the battery packs, and they made a robot to place it. Now, if you're trying to come up with something that would be difficult for computer vision systems to process, and for robotic arms to handle, you couldn't do much better than "fluff". The robot spent most of its time finding new and creative ways to fail to pick up the fluff, as well as to put it in inventive new locations. So you had these expensive robotics technicians both bailing it out of its mistakes and trying to adjust its programming to prevent them, on and on for months on end. When you could just have simply paid people to place the fluff.

      Flufferbot is gone, by the way ;)

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    4. Re:More room for manual assembly? by Anonymous Coward · · Score: 0

      The real problem is they don't have management that can build a factory. Musk has a big mouth and he can make a good show for the faithful, but that isn't the skill set that delivers a product of quality, in number, at low cost and on time. In fact, these are things that Tesla has consistently failed to achieve.

    5. Re:More room for manual assembly? by Anonymous Coward · · Score: 0

      In not so many words, the "strategy" that the "visionary" Musk has been touting all these years has failed spectacularly in numerous ways.

      So, he has to go back to where everyone else has been years ago, trying desperately to catch up, mostly with more costly and ineffective experiments that will also fail.

      You know what's funny? That he, and later his fan base are about to find out that everyone is much better than Tesla at that.

    6. Re:More room for manual assembly? by Rei · · Score: 1

      In not so many words, the "strategy" that the "visionary" Musk has been touting all these years has failed spectacularly in numerous ways.

      Not at all. They just went too far too fast. It's still a very heavily automation-focused facility.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    7. Re:More room for manual assembly? by Anonymous Coward · · Score: 0

      Not at all? There is not a single Tesla product that is made on schedule, and they are going back to where everyone else is. But then denial isn't a river in Egypt -- it is what happens in Muskland.

    8. Re:More room for manual assembly? by Rei · · Score: 1

      Not at all? There is not a single Tesla product that is made on schedule, and they are going back to where everyone else is. But then denial isn't a river in Egypt -- it is what happens in Muskland.

      1. The conversation was about automation.

      2. You can view the general market's view of the company in its stock price. Hint: people very strongly disagree with you. Also hint: most of Tesla's stock is held by large institutional investors.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    9. Re:More room for manual assembly? by Anonymous Coward · · Score: 2, Funny

      You want an example? Flufferbot.

      That is not a job I would trust to robots just yet. At least not until the Westworld bugs get worked out.

    10. Re:More room for manual assembly? by Anonymous Coward · · Score: 0

      The people that invest in Tesla a retards like you. Their opinions are invalidated by that fact.

    11. Re:More room for manual assembly? by Rei · · Score: 2

      The lion's share of Tesla's stock is owned by major institutional investors.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    12. Re:More room for manual assembly? by whoda · · Score: 1

      Flufferbot went away when they stopped putting fluff in the battery packs.

    13. Re: More room for manual assembly? by Anonymous Coward · · Score: 0

      It's customary to back up a claim like that with a citation link. Especially in instances where you just double down and repeat the claim.

    14. Re: More room for manual assembly? by haliburns · · Score: 0

      Eat your shorts - Elon Simpson

    15. Re:More room for manual assembly? by rogoshen1 · · Score: 1

      Pretty neutral towards musk and tesla -- but SpaceX seems to be doing pretty well no?

    16. Re: More room for manual assembly? by Rei · · Score: 1

      Is teh Google too hard for you?

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    17. Re:More room for manual assembly? by Anonymous Coward · · Score: 0

      Flufferbot is gone, by the way ;)

      Relegated to the domain of fluffing on porn sets. What a disgrace.

    18. Re:More room for manual assembly? by Anonymous Coward · · Score: 0

      Yes, corporate socialism is very good for big business.

    19. Re:More room for manual assembly? by Anonymous Coward · · Score: 0

      Of course they do, they buy a bit from everything. More to the point, however, Tesla accounts for fractions of a percent of the total holdings of its top few institutional investors. That is, it is a totally insignificant part of their portfolios.

  5. Carnie's gonna bark by Scareduck · · Score: 2, Funny

    We already know who the clown is, now we've got tents for this circus. Very good, Elon.

    --

    Dog is my co-pilot.

  6. Makes sense by Patent+Lover · · Score: 1

    Hey, it worked for circuses for years. Why not car production?

    1. Re:Makes sense by fozzy1015 · · Score: 0

      Hey, it worked for circuses for years. Why not car production?

      It's very appropriate; Tesla is quite the circus of a company.

    2. Re:Makes sense by 93+Escort+Wagon · · Score: 2

      Hey, it worked for circuses for years. Why not car production?

      And, if he gets a better tax offer from another state - easier to roll up, load onto a train, and move (again, like the circus).

      --
      #DeleteChrome
    3. Re:Makes sense by vtcodger · · Score: 1

      FWIW, back in the 1980s one of the PC makers -- can't recall the name -- had an assembly line in a circus tent next to Interstate 5 in Carlsbad, CA. Apparently, it worked out OK as the tent was there, and apparently in use, for several years.

      --
      You can't see ANYTHING from a car, You've got to get out of the goddamned contraption and walk...Edward Abbey
    4. Re: Makes sense by Anonymous Coward · · Score: 0

      Sorry broham, I have a patent on lame jokes. You're now required to pay me $900,000,000,000,000,000.00.

    5. Re:Makes sense by Rei · · Score: 2

      Huh, that part never occurred to me. That's ingenious.

      Since these buildings are standardized and designed for assembly and disassembly, with stockpiled components for them, you don't even have to use the same building. Just wait until your new building is ready then disassemble the old one.

      Just have to make sure that the line is easy to take down and set back up. Wonder if the sizes of components on their next line will be based on what fits into a shipping container? ;)

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    6. Re:Makes sense by Anonymous Coward · · Score: 0

      That's not all! Once Grimes's boyfriend overcomes production line size restrictions and begins making those trucks in number, Tesla will be able to move the factory tent on top, and not only save on land, but also keep producing even as they chase the handouts states provide to manufacturers. This is the future now, man!

    7. Re:Makes sense by dgatwood · · Score: 1

      Hey, it worked for circuses for years. Why not car production?

      I don't know about circuses, but the whole thing sounds like a comedy routine. I figure this is how it went down:

      Minion: We're at maximum capacity.
      Musk: Well, we have to double our production in the next three months.
      Minion: Are you nuts? Ramping up that fast would be intense.
      Musk: Sounds good. Start building them.
      Minion: Building what?
      Musk: Tents.
      Minion: Brilliant!

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    8. Re: Makes sense by Anonymous Coward · · Score: 0

      No, Elon, you go get that on the financial markets. Badum-tsssssh.

  7. Humans take space by reanjr · · Score: 2

    Not surprising. Tesla has been shifting to humans over automation. They probably had some difficulty working around the existing layout and instead of reworking much of their factory floor I'm guessing they decided to move people outside. Heat from bodies may also make the factory uncomfortable if it wasn't designed for it.

    1. Re:Humans take space by Anonymous Coward · · Score: 0

      The Elon Musk Reality Distortion Field 2.0 (powered by his musky scent) doesn't work on machines.

    2. Re:Humans take space by sexconker · · Score: 1

      Weak. Luke Skywalker was able to send a projection of himself to a distant solar system and it was so strong it convinced his force-sensitive twin sister, once of the strongest (and most emo) force wielders in the universe, AND his favorite droids.

  8. Check back after the first run by sunking2 · · Score: 0

    And let's see what the quality guys think of assembling exposed to in the open wind swept air with no humidity control. There's a reason people don't have production lines in tents. He's trading quality control for quickly ramping production. I'll have to agree this seems like a desperate move.

    Oh, and ya, great view there of those graffiti stricken trains.

    1. Re:Check back after the first run by Brett+Buck · · Score: 1

      I would think dust and dirt would be a bigger problem than humidity. This time of year, dew points are in the 50s and during the day the humidity is reasonably low, and fairly consistent. As above, the first problem is going to be the temperature - so far this year, temperatures have been abnormally cool, but its going to be consistently in the 90s and up into the low 100s as far as the temperature goes before too long. The last week has indeed been really nice, cool with some wind. But that will not last all summer.

    2. Re:Check back after the first run by vtcodger · · Score: 5, Insightful

      I've never been in a modern auto factory, but I've spent a lot of time in places where complex weapons systems were assembled. Temperature and humidity control wasn't an issue. In California, there wasn't any of either although the sheer mass of the facility tended to moderate temperature swings. In colder areas elsewhere there was some heating.

      We're not talking a semiconductor fab facility here.

      --
      You can't see ANYTHING from a car, You've got to get out of the goddamned contraption and walk...Edward Abbey
    3. Re: Check back after the first run by Anonymous Coward · · Score: 0

      You, sir, did no such thing.

    4. Re:Check back after the first run by Barsteward · · Score: 1

      are you describing a tent they use for camping? its looks a bit more robust than that

      --
      "The hands that help are better far than lips that pray." - Robert Ingersoll (1833-1899)
    5. Re:Check back after the first run by whoda · · Score: 2

      Hundreds of casino's in the US use this same style tenting, none have rusting and ruined slot machines, nor do they have standing water by the craps table.

      People in the business of making money love the tents.

    6. Re:Check back after the first run by Anonymous Coward · · Score: 0

      I have to agree. I worked in a Kawasaki factory for a while. The only AC they had was for the offices upfront. They manufactured 4 wheelers, jet skis, and rail cars (mostly subway cars) there, and the heat and humidity never impacted anything I was aware of.

    7. Re:Check back after the first run by Comrade+Ogilvy · · Score: 2

      Which makes sense because individual components may (or may not) need careful climate control for manufacture, but if the assembly of the whole vehicle is so fussy that cleanish non-wet conditions can be a problem, then those components probably have no business in a car that must survive weather.

    8. Re:Check back after the first run by Peter+P+Peters · · Score: 1

      I would think dust and dirt would be a bigger problem than humidity....the first problem is going to be the temperature ...

      Because no-one else thought about this until now...quick get Elon on the phone!

  9. Explains the gaps by Anonymous Coward · · Score: 0

    This explains the strange gaps you experience in Teslas, trim not fiting right, strange squeeks and rattles, etc.

    If you don't assemble in a temperature controlled environment all kinds of stranger things will turn up in the final product.

    1. Re:Explains the gaps by Rei · · Score: 4, Interesting

      This explains the strange gaps you experience in Teslas, trim not fiting right, strange squeeks and rattles, etc.

      Meanwhile, if you actually hung out on Tesla forums and watched people take delivery and write about their cars, you'd know that this is a myth. Yes, as with any brand, the occasional vehicle has problems, and needs to be corrected by a service centre. But it's not at all like the shorts portray, in their endless glee sharing every last case that they can get their hands on.

      Tesla has always had the highest consumer satisfaction rate in the auto industry. Back in the Roadster days when they were selling hundreds of vehicles, you all said, "Well, that's only because you have hardcore early adopters - once you get more mainstream, people will stop putting up with it and will hate Tesla!". Then Tesla started selling thousands of vehicles with the early Model Ss. And you all said the same thing. Then they were selling tens of thousands of vehicles. Then a hundred thousand per year. And are now moving into the hundreds of thousands per year. At what point is your "people are going to start hating Tesla" hypothesis going to come true? Did you ever stop and think that the reason people tend to rate them well is that they actually really like the cars after having owned them?

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    2. Re:Explains the gaps by Anonymous Coward · · Score: 0

      Meanwhile, if you actually hang out with Rei and read about his experiences reading what other people write about Tesla on various forums, you'll believe it Elon's cum is sweeter than the honey Rourke poured on the tits of Basinger in that 90s movie.

    3. Re:Explains the gaps by Anonymous Coward · · Score: 0

      While you may have excellent taste in movies, I think you're barking up the wrong tree here. Two of my close family members own a Tesla (one a Model S, the other a Model 3). I have driven both and been driven in both many times, and I would put the quality of the fit and trim at least equal to my wife's lexus ls, and miles better than my mustang (2015).

  10. Today's footage of tent assembly line by fozzy1015 · · Score: 0

    Sure looks like it's rocking at over 700 Model 3s per day, huh? https://www.zerohedge.com/news...

    1. Re:Today's footage of tent assembly line by Rei · · Score: 1

      Those recordings are over a week old. You can tell by counting the number of windows and panels visible on the buildings that they're from earlier in the construction. The building wasn't even fully built yet.

      Contrary to your article's assertion, Tesla has never had a goal to build 5000 cars per week every week in June. The goal is to get the line capacity up to 5000 cars per week by the end of June. They'll want to ideally have one week at that rate by that point, but at least 1-3 days to show that it can be sustained. Of course, the shorts will just insist on pretending that it's a burst rate, just like they did last time (and were wrong).

      More to the point, Tesla has a very strong disincentive not to make too many cars this month, as they don't want to hit delivery #200k and start expiring the US tax credit until Q3. They certainly can stockpile, but cars take up a huge amount of space (5000 cars packed closely together takes up an amount of space about a third of a kilometer by a third of a kilometer), and the longer you stockpile something outdoors, the greater the risk of damage.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    2. Re:Today's footage of tent assembly line by Anonymous Coward · · Score: 1

      Tesla has a very strong disincentive not to make too many cars this month

      Wut? I assume this means Tesla doesn't want to produce many cars, but this is a ridiculous point. With cancellation rates at 1/3 of the preorders for model 3, and with an unsustainable cash burn rate, the only reasonable thing Tesla should be doing is ramping up production with what they've got already, instead of wasting time on bullshit.

      This will make sense if their variable costs are lower than the variable revenues. The only scenario where Tesla doesn't want to increase output is that they lose money on the variable costs - something you Tesla lemmings have been denying is true (although it is).

      What would they be "stockpiling" if they claim orders that have been outstanding for over a year?

    3. Re:Today's footage of tent assembly line by Rei · · Score: 1

      With cancellation rates at 1/3 of the preorders for model 3,

      It was 1/4th. Over the course of two years. With new reservations keeping pace or outpacing cancellations. With a reservation list that even at 5k per week would take them nearly two years to get through. With massive potential for reservation growth.

      Complete. Non. Issue.

      instead of wasting time on bullshit.

      Half a billion dollars from the federal government to customers - some of which will be spent on extra options packages - is anything but "bullshit". Giving that up to move some deliveries forward a couple weeks would be moronic.

      The only scenario where Tesla doesn't want to increase output is that they lose money on the variable costs - something you Tesla lemmings have been denying is true (although it is).

      Meanwhile, Tesla has been upping their capacity from 2k at the start of the quarter to 3,5k in the middle and is now headed toward 5k. Maintaining production through most of the quarter, avoiding tolling the credit by instead saturating the Canadian market of first-production orders.

      But by all means if you disagree, make sure you got those short positions in!

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    4. Re:Today's footage of tent assembly line by sexconker · · Score: 1

      Seek psychiatric help, please.

    5. Re:Today's footage of tent assembly line by fozzy1015 · · Score: 1

      Those recordings are over a week old

      Check out the news paper pic in particular: https://twitter.com/skabooshka... This new line isn't near completion.

  11. There's a lot to be said for agility by Bruce+Perens · · Score: 5, Insightful

    So, Elon Musk and his company just built in 5 weeks, literally from the ground up, what GM might spend 10 years architecting and designing, getting the EIR, hiring the right unions and negotiating their contracts, contracting for an acquiring equipment, actually assembling it, staffing it, and starting it running.

    This race for profitability is actually viewed with contempt by a commentator of the conventional auto industry.

    There is a lot to be said for agility, as any manager or investor in a start-up will tell you. This is simply another difference between Silicon Valley business and the conventional auto business. The same sort of difference that allowed Tesla to make electric cars that could actually compete with gasoline cars on their own turf.

    I hear Ferrari is just starting to introduce one that might compete, after Tesla has had theirs on the market since 2007, with three new models since. But that's it so far. Ferrari is pretty agile as auto manufacturers go, but at the cost of low manufacturing volume. Ferrari won't be selling its cars at even 5000/month. Tesla is trying to get both the volume and the innovation.

    1. Re:There's a lot to be said for agility by LynnwoodRooster · · Score: 1, Interesting

      Those old, slow dinosaur automakers actually make a decent profit. Tesla loses money on each car they sell. Maybe being "nimble" and Silicon Valley savvy isn't all it's cracked up to be?

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    2. Re:There's a lot to be said for agility by Bruce+Perens · · Score: 5, Insightful

      The German folks who disassembled a Tesla showed that the parts costs would allow Tesla to make a nice profit. I'm sure that when they're building an assembly line in 5 weeks they're not making money, but that assembly line is going to keep running, even if they eventually move it into a permanent building. Let' also remember that they are selling a whole lot of electricity storage, solar panels, cars don't even have to be their main income stream.

    3. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Nothing Tesla makes is even in the same market as Ferrari, so I have no idea why you're mentioning them.

    4. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      When Tesla's current form fails and functionally dies (no large business really goes under anymore, they will be bought or spun-off), I wonder if you will self-reflect on all the absurd flattery over the years or will you post-rationalize a way to ensure you can feel you were right despite the damning evidence.

      You will have an opportunity to become a better man. A better and more precise thinker, or to fall into stronger but more pleasant delusions. What will you pick?

    5. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      "The German folks who disassembled a Tesla showed that the parts costs would allow Tesla to make a nice profit."

      On manufacturing costs, ignoring all development costs such as R&D.

    6. Re:There's a lot to be said for agility by MightyYar · · Score: 1, Insightful

      Considering Tesla currently makes the quickest production car ever built, that is a strange statement to make. Claimed top speed of 250MPH would put it in the top 10 fastest cars in the world, well ahead of the fastest Ferrari at 217MPH.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    7. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Tesla loses money on each car they sell.

      Where did you get that from? If you got it from the analysts, please see how they made this assessment. They actually make a lot of money off of each car they sell. The loss is due to expenditures for growth, buildings, superchargers, etc. You can't get net revenue, and divide by product sold. If you do that, Amazon loses money on each product they sell too. Yes, it hurts the "Telsa stock is doomed" narrative, but don't fall for it.

    8. Re: There's a lot to be said for agility by Bing+Tsher+E · · Score: 1

      Nice and fast, going straight ahead.

    9. Re:There's a lot to be said for agility by perpenso · · Score: 2, Informative

      "The German folks who disassembled a Tesla showed that the parts costs would allow Tesla to make a nice profit."

      On manufacturing costs, ignoring all development costs such as R&D.

      R&D, the cost of the land and building, etc are sunk costs. They are not considered in the decision to continue operations, they have no impact on the cost of operations. Now ongoing costs, taxes on the land and building, maintenance of the building, etc will be considered.

    10. Re:There's a lot to be said for agility by perpenso · · Score: 0

      Considering Tesla currently makes the quickest production car ever built, that is a strange statement to make. Claimed top speed of 250MPH would put it in the top 10 fastest cars in the world, well ahead of the fastest Ferrari at 217MPH.

      And that Tesla that beats a Ferrari is a four door 5 seat sedan. :-)

    11. Re: There's a lot to be said for agility by MightyYar · · Score: 1

      All the top track cars have at least some electric component to their drivetrain - why do you think the Roadster will be a poor track car? I can see it having poor endurance due to battery overheating, but on paper it does not have any inherent problems with track performance.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    12. Re:There's a lot to be said for agility by WindBourne · · Score: 1

      No. The Tesla that does 250 MPH is NOT a sedan. It is a 2-door/2 seat roadster.
      IIRC, The MS beats all of the ferraris that are less than $300K, but loses once they hit $500K.
      And the roadster 3 should be beating ALL ferraris in terms of speed/acceleration, and will likely out-do them on the track.
      As to battery overheating, not on the roadster.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    13. Re:There's a lot to be said for agility by shilly · · Score: 1

      Kinda helps to understand concepts such as marginal costs if you want to talk about profitability, no?

    14. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      and probably with little to no climate or humidity control, no air quality control, no pest control, no permanent plumbing, power, etc. how about occupational safety? evac plans? security? environmental impact? other issues that could negatively affect quality of the output product........

      when building stuff where millimeters (and fractions of) matter. where electronics and strict tolerances are vital to the safe operation of the product....

      ya, the products coming off the lines in 'high tech tent' assembly line will be just as good as the stuff coming off the lines for the big 3 anywhere in north america or any of the lines in japan or germany.

      and if musk wasn't butt buddies with trump, this shit would get harassed and shut down so fucking fast.....

    15. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 1

      You actually think Musk's expensive Camry-with-batteries is in the same market as Ferrari, regardless of the speed?
      You think speed is the only thing Ferrari is selling?

    16. Re: There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Lol 500k. Nice.

    17. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Actually the german folk showed EXACTLY the opposite. They showed the car could be assembled for the cost at much higher volumes before tooling, marketing, shipping administration etc. basically the conclusion was they could not build the cars profitably.

    18. Re:There's a lot to be said for agility by Barsteward · · Score: 1

      Except the ones that go bust and need a bailout......

      --
      "The hands that help are better far than lips that pray." - Robert Ingersoll (1833-1899)
    19. Re:There's a lot to be said for agility by cerberusss · · Score: 1

      Those old, slow dinosaur automakers actually make a decent profit.

      Yes, but probably not on electric cars. I'm living in Europe, and there's a shortage on EVs. Meaning, if you order them, you'll have to wait for 6 or more months. Now in that market, some manufacturers are winding down production on EVs. For instance, the Volkswagen e-Golf takes more than 6 months to deliver however its production will be stopped. Volkswagen says they need the capacity for their new series which comes out in 2019. However it's suspected that VW simply cannot make the e-Golf profitable at the moment.

      --
      8 of 13 people found this answer helpful. Did you?
    20. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      For instance, the Volkswagen e-Golf takes more than 6 months to deliver however its production will be stopped. Volkswagen says they need the capacity for their new series which comes out in 2019.

      Citation needed.

      Although it is exactly what I would do if I was in charge of VW; you can probably get 3 GTE batteries out of the cells for one e-Golf battery, and they are desperately behind on GTE production.

    21. Re: There's a lot to be said for agility by Anonymous Coward · · Score: 0

      to be fair, they're making most of their profits on trucks & truck-based SUVs. Cross-overs are popular too. but they tend to not make much profit on cars, for the ones they're selling.

      US car sales have softened to the point that Ford & GM are pondering not making cars (Impala, Malibu, Fusion etc) much here soon.

    22. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 2, Informative

      you fail to mention they don't actually make that car yet so no it is not the quickest production car ever, that is what they intend to make by 2020 which by then I am sure the current top 10 will have also upped their game. current Tesla's do not do 250mph and are NOT in the top 10 fastest cars or anywhere near it. incidentally at 250mph even if they did make it today that would NOT make it the quickest production car ever, still well short of the top.

    23. Re:There's a lot to be said for agility by AvitarX · · Score: 1

      Tesla isn't making any roadsters as a production car currently, so that's can't be what MightyYar was referring to.

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    24. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      exactly. I guess the germans that did it didn't think the uneducated would look at the report and try to claim it showed it was profitable.

    25. Re:There's a lot to be said for agility by Rei · · Score: 1

      It's the standard nonsense people post on Slashdot every time Tesla comes up. They ignore that Tesla was earning ~25% margins before the Model 3 production started, and even with the current scaleup is still getting a net margin of ~19%. They're simply comparing net profit and ignoring all of the capex's contribution to that.

      It's just embarrassing how someone can think that they're doing a "financial analysis" where they compare current sales as cash inflows vs. current expenses designed to produce vastly larger volumes of sales that they're not yet getting the revenue from, and say, "AHA, it's negative!" Well no-freaking-duh, Sherlock. But that's not how you do a financial analysis; you're supposed to estimate at a minimum how much the company would be earning at a steady state, not during a rampup, and ideally where future growth and market trends will take the company, while factoring in risk. And reasonable people can strongly differ about all aspects of the latter. But anyone who doesn't even get as far as considering the companies that they invest in from a steady state perspective.... well, I'll put it this way, I hope you're not making your own investment decisions.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    26. Re: There's a lot to be said for agility by Anonymous Coward · · Score: 0

      you laugh, but the roadster has a base price of around 250k before options and a 50,000 reservation price and won't be built till 2020 at the earliest, even then it seems a bit silly as 250mph wouldn't actually be the fastest production car even today and almost certainly won't be in 2 years time when it is released.

    27. Re: There's a lot to be said for agility by Rei · · Score: 2

      More to the point, if the "SpaceX options package" materializes, the thing should be capable of things like accelerating at high speeds straight sideways from a standing start. No other vehicle could even remotely hope to compete on maneuverability with a car that has an honest-to-god RCS on it. It's like stepping up to a fight, and on one side the person is armed with a knife, and on the other side it's an Abrams tank.

      Without that, though, the Roadster will indeed suffer from being heavier than its competitors (although will have the advantage over 2WD competitors by virtue of being AWD). Its trick will be speed and especially acceleration***. That said, it's important to point out that the Model 3 is not at all a heavy car relatively to its size and performance class. Which probably contributes to why its handling has been getting such rave reviews. Even the famously Tesla-hostile Randy Munroe said that its suspension designer could be a Formula 1 prince.

      *** Well.... it does have one other trick up its sleeve: torque vectoring. It has three motors; it can spin each of its rear wheels not just independently, but even in opposite directions. The car could even pirouette in place. That doesn't replace the impact of weight on maneuverability, but will offer a new set of maneuverability advantages at the same time. It'll be interesting to see which aspect wins out on a windy track.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    28. Re:There's a lot to be said for agility by Rei · · Score: 2

      Minor correction: This is a common myth; it's not battery overheating that prevents S and X from doing sustained track duty, but motor overheating - in particular, rotor overheating. Induction motors mean you have induction currents in the rotor, which means rotor heating. There are limits on how much you can cool a rotor; cooling the stator is much easier, as you can extend alumium or copper vanes from it in all directions and run coolant along them.

      Tesla's new primary motor is PM and thus has no rotor induction currents, and thus can do sustained track duty. Now, with Model 3 dual motor and performance configurations, the front motor is induction - but any time you're not running a 100% throttle, that's the motor it ramps down first, so in almost any realistic scenario, it won't get hot enough to overheat the rotor. The motor config on the Roadster is at this point unknown, apart from the fact that it will use at least some PM motors, and there will be two motors in the back (one for each wheel), one in front.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    29. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      that assembly line is going to keep running, even if they eventually move it into a permanent building.

      How is this kind of garbage modded "insightful"? "Moving" an assembly line means disassembling and reassembling the machinery. It won't "keep runing", it will have to be rebuilt. Virtually from zero. Making real shit ain't quite like making computer animations or blabbering about it, buddy.

    30. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      no idiot, when you are doing a financial analysis, you look at past performance, current performance and expected future performance. you DO NOT ignore current situation and the current situation can kill the company before it reaches future profitable state.

    31. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      This "capex" thing is the standard nonsense that Tesla fans post on Slashdot year after year after every loss report from Tesla, except that it isn't true at all.

      It is very easy to check that the COGS (that is, the stuff Tesla PAYS to make cars, EXCLUDING capex and R&D) have consistently risen more than the growth in revenue. That is, they lose more today then they used to in the past. That is, their "growth" is actually a loss and doesn't scale at all.

      If you add on top of this the "dynamics" of "capex" and interest, Tesla is a zombie, animated purely by the idiocy of its investors, dot-com style.

    32. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Except when the need government bailouts because they are bankrupt.

    33. Re:There's a lot to be said for agility by Rei · · Score: 1

      What on Earth are you talking about? COGS is part of gross profits. Gross profit equals revenue minus COGS. Tesla has generally maintained ~25% gross profits, only dropping recently with Model 3 production start, and that's been going back up as they've been scaling back up, now around 19%.

      I think you mixed up your short arguments. You're supposed to say that Tesla's SG&A is too high, because it's a standard (and false) short pretense that SG&A 1) scales linearly with sales, and 2) has no lag between when you need to start spending and when you get revenue from the associated sales.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    34. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      If they have a 6 month line for e-golf and it isn't profitable, just increase the price till you break even. The line may get shorter that way, but you've found how big that market is.

      Turning a profit on EVs isn't hard. Chances are they have bigger profits on the fuel cars they make on larger scales. And they don't care about having the EV experience as EVs become more popular.

    35. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      No they don’t make the fastest production. Top speed on a shit Tesla is laughable. They don’t hold any lap records anywhere. They are not the fastest production car period.

    36. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Sigh... they do NOT lose money on each car they sell... they don't show profit because they spend so heavily on R&D and infrastructure investment. If they lost money on each car they sold, that would be completely silly. Their margins are actually quite high, please stop with the FUD.

    37. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      So, Elon Musk and his company just built in 5 weeks, literally from the ground up, what GM might spend 10 years architecting and designing, ...........

      No, not at all. First off this was evidently being planned for a while. Second, it is not a new line independent but an extension of the existing lines.

    38. Re:There's a lot to be said for agility by LynnwoodRooster · · Score: 0

      It's not nonsense and you know it. You keep trying to claim gross profit is all-important. Guess what - it's not! Sure, Tesla likes to CLAIM high gross profit, but they LOSE money on each car (and you know it - the financials state as much). Other makes may have lower gross margin - but they TURN a profit. Gross margin without profit doesn't mean a whole lot - it means you're quite inefficient.

      Oh, and as I've shown you MANY times, they LOSE money even before R&D and capital expenditures. SG&A alone makes them money-losers. Then add in interest costs. Tesla could completely cut R&D, engineering, capex - and still lose money.

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    39. Re:There's a lot to be said for agility by LynnwoodRooster · · Score: 0

      Maybe that means EVs aren't ready for prime time. If the demand is there only for vehicles made below cost, then the demand is not supported by the market. But when you have Government forcing you to make some EVs (for example, want to sell in California? You have to offer EVs) then you take a loss on as few vehicles as you can - and let those old, evil ICEs actually fund your company and the EVs themselves.

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    40. Re:There's a lot to be said for agility by LynnwoodRooster · · Score: 1

      I usually ignore ACs, but you're special...:)

      Here are Tesla's financials. Check the Quarterly link. You'll see they had a gross profit of $456MM. Now, let's look at expenditure. SG&A is $686MM itself. So even before R&D or capex, we're already negative. R&D is another $367MM. Interest is $150MM. Heck, R&D and interest alone wipe out all (and then some!) of their gross margin. They lose money on each car they make, just with the cost of the vehicle and SG&A (which is kind of required to sell cars - you need a sales system, administration, and transportation to actually, you know, SELL vehicles).

      --
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    41. Re: There's a lot to be said for agility by WindBourne · · Score: 1

      keep in mind that the roadster's numbers are bottoms, not tops. So, it is possible that musk will see it do 270 mph and 0-100@1.5 .
      I have to say that the acceleration really can be useful on the road, but other than Germany, anything faster than 100 mph is just a waste.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    42. Re:There's a lot to be said for agility by Rei · · Score: 1

      See the post immediately above yours, written three hours before you wrote this.

      I didn't even bother to mention there that, hey, you remember that 9% they cut from the workforce (mostly middle management, and much of the old Solar City sales division, as they're switching that to roofing products)? That's a SG&A cut. But that's actually beside the point.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    43. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Tesla already had two other Model 3 lines, so building a third should not have been a strenuous endeavor.

    44. Re:There's a lot to be said for agility by Rei · · Score: 1

      No matter how many times you make it, that's still a terrible argument. SG&A does not scale linearly with number of vehicles, and much of the costs of scaling up production / sales comes in advance of the actual revenue from them. And R&D is closer to constant than linear with respect to volume.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    45. Re:There's a lot to be said for agility by b0bby · · Score: 1

      OP is probably referring to 0-60 times for the "quickest" claim - Tesla is just behind the Porsche 918 on that metric, and that was a sub-1000 "production" car. Considering the other cars on the list, it's pretty impressive:
      https://en.wikipedia.org/wiki/...

    46. Re:There's a lot to be said for agility by MightyYar · · Score: 1

      Notice I said "quickest", as in acceleration. And they still rank far above any Ferrari in top speed, too. They don't hold lap records with the current Roadster, though that could change with this new one. It rather depends on how good of a thermal management job they do with the battery. One thing is clear - you need electric motors to hold a lap record these days.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    47. Re:There's a lot to be said for agility by MightyYar · · Score: 1

      Right, no one buys a Tesla Roadster for bling. Sure.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    48. Re:There's a lot to be said for agility by MightyYar · · Score: 1

      Meh, it's the announced car's numbers that I used. I'm taking some liberties because I can't have one whether they are "available" now or in 2 years. To me, they aren't available.

      Point is, they are absolutely competing with Ferrari.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    49. Re:There's a lot to be said for agility by WindBourne · · Score: 1

      Thanx for the correction.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    50. Re:There's a lot to be said for agility by LynnwoodRooster · · Score: 1

      Not exactly... Heat in an induction motor increases the resistance of the windings, meaning you get less force (less current) for an applied voltage. Eddy currents are another parasitic which scale linearly with applied current in the windings, and also negatively affect efficiency.

      However, permanent magnet motors are not a panacea. They still have eddy currents (any electrically conductive material will support eddy currents - and all forms of magnets are electrically conductive), and they have heat issues. Specifically the high energy neodymium magnets. Excessive heating (which happens with permanent magnets as well - you are putting a lot of current through the stator) means the magnets will discharge at a lower induced field, often as low as 80 deg C.

      So sustained track performance, unless you add significant amounts of cooling (such as liquid cooling) into the stator, becomes an issue after a lap or two. Heat starts to build up, magnets start to run the risk of being demagnetized, and you have to scale back on the current delivered (and thus the force in the motor) to keep from ruining the magnets.

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    51. Re:There's a lot to be said for agility by WindBourne · · Score: 1

      oh yeah. Ferrari, Porsche, basically, all the top-end car companies. And $ for $ (or € for €), tesla is outdoing them.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    52. Re:There's a lot to be said for agility by LynnwoodRooster · · Score: 1

      Looking at this list, the P100D with the full Ludicrous+ mode, is second only to the Porsche 918 from 0 to 60. But in the 1/4 mile, it's well down the pack... And in terms of top speed, there are a few production vehicles available today that exceed 250 MPH.

      --
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    53. Re:There's a lot to be said for agility by AvitarX · · Score: 1

      Oh,

      I actually lost tract of the thread, and I thought you were erroneously comparing the 0-60 of the Model S with Ludicrous etc. to a Ferrari.

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    54. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      And they still rank far above any Ferrari in top speed, too.

      No they don’t. Not even close retard. The Tesla’s fastest car the model s has a laughable top speed of 130mph. That’s camery territory. A Ferrari f12 will do 210mph. Tesla isn’t even in the same league as Ferrari.

      The roadster? That’s vaporwear.

    55. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      I’m gonna acounce my own car. The AC moters supersport. It will do 0-99.99999999999c in 1.0E-10000000000000s and has a top spread of infinity.

      By your logic, I now have the fastest production car ever.

    56. Re:There's a lot to be said for agility by LynnwoodRooster · · Score: 1

      Cut SG&A by 9% - they still have a loss. Look, they have a LONG way to go before they turn over a $700MM quarterly loss. A VERY long way...

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    57. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      One thing is clear - you need electric motors to hold a lap record these days.

      No you don’t. Current Nurburgring production car record is held by the Porsche 911 GT2. Number of electric motors: 0. The fastest car with an electric motor is the Porsche 918 spyder but it’s only 5th.

      Tesla’s shit cars don’t even make the list.

    58. Re: There's a lot to be said for agility by sexconker · · Score: 2

      keep in mind that the roadster's numbers are bottoms, not tops.

      So are Elon Musk's fans.

    59. Re:There's a lot to be said for agility by rogoshen1 · · Score: 1

      Or maybe build a permanent structure AROUND the assembly line. Steel frame construction isn't beyond the means of a multi-billion dollar company.

      But it's also more than likely an issue Tesla has considered.. But i'm sure they'll consult you, AC next time around.

    60. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      wow, rare dialogue between WindBourne & Rei, even though you both musk cocksuckers

      another rare moment of verboten boypussy love, was when WindBourne absent mindedly but most lovingly referred to Rei as "we", despite strict edicts from master bugger musk himself against fraternization among his minions of boypusssys

      so touching...WindBoune & Rei...I'm starting to choke up a little as I type...

    61. Re:There's a lot to be said for agility by shilly · · Score: 1

      Um, that's not what marginal costs means. You're trying to be witty but you just sound like an ignoramus.

    62. Re:There's a lot to be said for agility by Rei · · Score: 1

      Only if SG&A 1) scales linearly with production volumes (it doesn't), and 2) involves no scaleup time delay (it does).

      Which is why I wrote "that's actually beside the point"

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    63. Re:There's a lot to be said for agility by cheesybagel · · Score: 1

      For how many years did Amazon "lose" money?
      They're ramping up facilities and fabs cost money.

    64. Re:There's a lot to be said for agility by LynnwoodRooster · · Score: 1

      The reality is you basically need to ELIMINATE SG&A to turn a profit. R&D and interest on debt nearly equals SG&A. What combination of cuts would you use to actually start turning a profit? Remember - for just about every dollar in gross profit they make, they lose 2. So You need to slash costs at least in half... Even if they could get SG&A down to the percentage level of Ford, GM, or Nissan, they still lose money.

      --
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    65. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Or maybe build a permanent structure AROUND the assembly line.

      You have no idea how construction and assembly lines work, monkey coder.

      But it's also more than likely an issue Tesla has considered..

      Yep, kinda like they "considered" all other issues that have bogged down every single product release they've tried.

      But i'm sure they'll consult you, AC next time around.

      Actually, Tesla buys equipment we make. So there's that.

    66. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      COGS is part of gross profits.

      No, it isn't.

      Gross profits are what remain from the revenue when you remove the cost of goods sold.

      And the guy above is right, Tesla costs have risen more than their sales have before R&D, which is a strong indication that the stupid story about "economies of scale" that you idiots keep telling ain't happening.

    67. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      SG&A does not scale linearly with number of vehicles

      Indeed. For a normal company, over a broad change of quantity, variable costs (roughly equal to COGS in accounting parlance) increase less than the sales increase, and this phenomenon is called "economies of scale". Or, simply, large volume means cheaper unit costs.

      With Tesla, we have COGS consistently increasing more than the revenue growth before we even consider "sunk" costs like capital expenditure and research and development. So, for Tesla large volume means larger loss - both aggregate and per unit.

      Happens a lot in other mismanaged companies, too.

    68. Re: There's a lot to be said for agility by Anonymous Coward · · Score: 0

      if the "SpaceX options package" materializes

      Will that be before or after the $35k Model 3 materializes? And which year, 2023 or 2032?

    69. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      I tried to buy one just now, but I only got a "reserve" button. So, yeah, no one buys a Tesla Roadster, because there ain't no such thing.

    70. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      The small difference is that Amazon never failed to deliver placed orders. Starting from day 1.

      Musk has never failed to fail to deliver.

    71. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Doh, roughly equal to COGS+general business costs like sales and administration. Should have read before posting.

    72. Re:There's a lot to be said for agility by Rei · · Score: 1

      R&D scaling is far closer to constant (aka no scaling) with volume than linear. For really bloody obvious reasons, and it's embarrassing that this didn't occur to you.

      What combination of cuts would you use to actually start turning a profit?

      Not cuts. Scaling. The very thing Tesla is doing right at this moment. The very thing they've been spending to do.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    73. Re:There's a lot to be said for agility by Rei · · Score: 1

      With Tesla, we have COGS consistently increasing more than the revenue growth

      Gross profits being Revenue - COGS and being generally ~25%-ish before the model 3, dropping (obviously) during scaleup's early phases, and now all the way back up to ~19% and well on their way back towards ~25%, the numbers tell a very different story.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    74. Re:There's a lot to be said for agility by Rei · · Score: 1

      Gross profits are what remain from the revenue when you remove the cost of goods sold.

      Which is why it's part of gross profits. C = A - B. A and B are both components of C.

      And no matter how many times you assert it, Tesla's gross profits - aka, "Revenue - COGS" - are not on a downward tend. Your claims are flatly and plainly contradicted by the quarterly statements. Repeatedly asserting otherwise doesn't make it true.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    75. Re:There's a lot to be said for agility by MightyYar · · Score: 1

      Good luck buying one of those fancy hybrid Ferraris, then.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    76. Re:There's a lot to be said for agility by MightyYar · · Score: 1

      Good point - thus far, production cars do not seem to require "thrust vectoring". I think that will change quickly as formula technology filters into high-performance production cars. I think you'd be a very foolish car company not to have electrics in development for your next generation.

      The old Roadster did not have the endurance. The new Roadster is likely to make the list, IMHO.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    77. Re:There's a lot to be said for agility by MightyYar · · Score: 1

      I'm obviously using the new Roadster numbers. You can call it vapor"wear" if you want to use it as an article of clothing.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    78. Re:There's a lot to be said for agility by MightyYar · · Score: 1

      I'm sorry I posted anything. Car people are worse than VIM/Emacs people :)

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    79. Re:There's a lot to be said for agility by MightyYar · · Score: 1

      The new Roadster isn't actually out yet. Tesla is claiming it to be the quickest (acceleration) production car ever produced, as well as one of the fastest (top speed) currently available. It's academic in a way, as you can't have one for 2 years. But they are taking money, so they are technically competing with Ferrari even without an actual product.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    80. Re:There's a lot to be said for agility by MightyYar · · Score: 1

      Do you have a car company? Your numbers seem less plausible if you do not.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    81. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Yes, it's called LightCar. We make cars out of light itself. We're still working on slowing down the photons so the acceleration doesn't kill everyone onboard, but it's as good as solved once our brilliant engineers can take a look at it.

    82. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      This race for profitability is actually viewed with contempt by a commentator of the conventional auto industry.

      You're talking out of your ass, Perens.

      Tesla been in business for 15 years and hasn't made money selling cars. No excuses. Musk is just incompetent. Even GM could do better.

      You Tesla Evangelicals are just delusional, beyond reason and have no understanding of manufacturing - but you're just a programmer. Musk needs you people to keep dumping money into his train wreck.

    83. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      That's not what I'm saying. If revenue-cogs was on a downward trend, the shorts would have cashed in long ago. What I'm saying the % of "profits" is going down as sales go up, because costs are increasing with volume. Here's a helpful picture of the "profits" and costs vs sales, data is from market watch:

      https://i.imgur.com/lcfwiZol.png

      This phenomenon shown is known as "diseconomies of scale", namely increase in production volume increases the unit cost. This is the reason Musk isn't producing at the volume - he'll be losing even more money then.

      And yes, this is before the cost of sales is applied, and naturally without the "capex" and "R&D". With any of these applied, Tesla is hopeless.

    84. Re:There's a lot to be said for agility by Anonymous Coward · · Score: 0

      Not cuts. Scaling.

      If anything, larger volume is going to put Tesla under faster. They have consistently exhibited diseconomies of scale throughout their brief history. Their unit costs increase with volume, year after year.

      Tesla cannot do large scale and cheap, period. Hence they restructured their model 3 line from "cheap and affordable" to high price. And that is why "scaling" is a myth for the gullible investors.

    85. Re:There's a lot to be said for agility by slashdotwannabe · · Score: 1

      Moving" an assembly line means disassembling and reassembling the machinery.

      Which they did, from scratch, in five weeks. I don't think this is the huge undertaking you seem to think it is.

      --
      This comment is my opinion and does not represent an official position of Donald Trump or others I do not work for
  12. I see by cascadingstylesheet · · Score: 2, Funny

    Who's the shift foreman, Sheriff Joe?

  13. Looks good/makes sense except... by mykepredko · · Score: 1

    Where's the paint shop?

    I don't see any issue assembling parts and, since it's an electric car, you don't have to worry about carbon monoxide when the engines are running (driving off the line).

    But I can't see how you could implement a paint shop in a structure like this in short order.

    Can anybody comment?

    1. Re:Looks good/makes sense except... by Pinky's+Brain · · Score: 1

      Automated paint shops aren't Tesla specific, they might already be perfectly able to run at the originally intended rate.

    2. Re:Looks good/makes sense except... by aaarrrgggh · · Score: 4, Insightful

      Tent in tent, repeat as required. Been in several aerospace composites factories that are little more than tents-- a Butler Building really isn't all that different. Usually the floor slab does a lot to moderate temperatures, but you can easily set up a modular clean room inside if you need to.

    3. Re: Looks good/makes sense except... by c6gunner · · Score: 4, Interesting

      The paint shop would most likely be in the existing structure, not the tents. But there's really no reason why you couldn't put it in a tent; all you need is a positive pressure system. Mobile chemical warfare decontamination units use tents; you just plug some air pumps with filters into them and make sure the pressure inside is higher than the pressure outside. Air will keep leaking out, but that stops any contamination from leaking in.

    4. Re:Looks good/makes sense except... by Rei · · Score: 1

      This isn't a paint shop. It's GA4 (General Assembly #4). Just one portion of assembling a vehicle.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    5. Re:Looks good/makes sense except... by Anonymous Coward · · Score: 0

      Where's the paint shop?

      I don't see any issue assembling parts and, since it's an electric car, you don't have to worry about carbon monoxide when the engines are running (driving off the line).

      But I can't see how you could implement a paint shop in a structure like this in short order.

      Can anybody comment?

      Its not a complete line. They have paint shops elsewhere. It is an assembly line only,.

      Air handling equipment and works in 'tents' just like it works in 'buildings'. Its not rocket science.

    6. Re:Looks good/makes sense except... by drinkypoo · · Score: 1

      Where's the paint shop?

      A paint shop is just a sheet metal box and some fans inside of a building (or, I suppose, a tent.) It's a triviality compared to the rest of this stuff.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    7. Re:Looks good/makes sense except... by mykepredko · · Score: 1

      Interesting the number of people who don't recognize a paint shop as being a chemical process with the need for maintaining temperature, ventilation (including air for workers), humidity, fire safety, etc.

      You *can* paint a car in a sheet metal box, but you won't get the consistent results over time that is required for a quality product. You also probably won't meet governmental health and safety standards.

    8. Re:Looks good/makes sense except... by drinkypoo · · Score: 1

      A paint shop is just a sheet metal box and some fans inside of a building (or, I suppose, a tent.) It's a triviality compared to the rest of this stuff.

      Interesting the number of people who don't recognize a paint shop as being a chemical process

      Interesting the number of people who want to look like they know more about this subject than they really do. One of us has had two years of auto body and paint. What's the other one had?

      with the need for maintaining temperature, ventilation (including air for workers), humidity, fire safety, etc.

      Temperature is handled by the plant. The incoming air comes from inside of the plant. It is pushed into the booth by fans mounted in the ceiling, and it falls through the floor and is exhausted through carbon filters. You blow air into the booth rather than sucking it out in order to maintain positive pressure, to keep dirt out. Since the exhaust doesn't pass through the fans, you don't even have to use explosion-proof motors. Fire safety is ensured by building the booth out of metal.

      You *can* paint a car in a sheet metal box, but you won't get the consistent results over time that is required for a quality product.

      It's time for you to go outside and go look at some auto paint, which is usually terrible. The most typical symptom is "orange peel", where the entirety of the surface of the paint is wavy and dimpled. This is a symptom of putting paint on thick and then literally baking the paint so hot that it reflows, which is overwhelmingly how automobiles are painted. That's why the body has to be painted before assembly, and then protected throughout; that kind of heat would melt plastic and rubber pieces on the exterior.

      You also probably won't meet governmental health and safety standards.

      Relevant governmental health and safety standards are related to what kind of paint you spray, what you reduce it with, what kind of filters you have to have and how you have to maintain them. You can literally buy paint booths out of catalogs, they show up on a truck and you assemble them per the instructions. Someone else has solved all of the regulatory issues per-state, and all you need to put them together is a wrench and a screwdriver. Almost literally — you might need two wrenches.

      Now, it's true that a tiny minority of vehicles are hand-painted, mostly so as to avoid the orange peel problem. A human can actually do a quality paint job faster than a robot, which depends on doing many coats to avoid runs. It can do them quickly (as the vehicle rolls down the line in many circumstances) which is why the consumer has been trained to accept orange peel — maximization of profit.

      In short, a paint booth is a trivial part of a building, and you are off your nut.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    9. Re:Looks good/makes sense except... by mykepredko · · Score: 1

      A paint shop is just a sheet metal box and some fans inside of a building (or, I suppose, a tent.) It's a triviality compared to the rest of this stuff.

      Interesting the number of people who don't recognize a paint shop as being a chemical process

      Interesting the number of people who want to look like they know more about this subject than they really do. One of us has had two years of auto body and paint. What's the other one had?

      18 years experience with my family auto-body shop - set up three booths in my time. One from a kit (which was a disaster) and spec'd out the other two. We specialized in painting vintage vehicles.

      In terms of car painters; I've seen pros and I've seen lots of hacks. The pros treat the booth like one of their tools and insist on a properly managed environment; they won't work in a metal box from Costco.

      As an engineer, I would expect a company, like Tesla, to have a proper manufacturing process, monitoring (and knowing) the critical process parameters as well as calculating and monitoring Cp/CpK.

  14. Thanks for the tip by Anonymous Coward · · Score: 0

    Now see you in the dust! Shouldn't have given away that hot info for free!

  15. It's just terminology by Anonymous Coward · · Score: 1

    Take a close look at the photos of those "tents". That's a tent the same way that my car is a go-cart. Better to call it a soft-sided building

    When sports clubs put these things up for tennis courts or cities put them up over facilities, they can be expected to last quite a few years. You can even get away with fairly decent climate control. In a mild climate like that, I bet it could last a decade with a bit of maintenance.

    1. Re:It's just terminology by Rei · · Score: 0

      The press calling it a "tent" seems to be just another attempt to make a dig at Tesla. Just like when people call EVs "go karts".

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    2. Re:It's just terminology by Anonymous Coward · · Score: 0

      It's a tent. I used to work at a company that used something like this for final assembly and testing of equipment. We called it the tent. Those things are pretty much permanent even in harsh climates. But they're still tents.

  16. Re:please redirect me by Anonymous Coward · · Score: 0

    Tesla-people, please point out where I'm wrong.

    "It's actually way better than the factory building." = "I wasted a couple billion of your money, and will be asking for more soon"

    Bolded where you're wrong for ya. HTH.

  17. Working conditions by rsilvergun · · Score: 1

    this makes me wonder about working conditions. e.g. heat & cold. Also safety. I'd also wonder about environmental concerns. There's a lot you can get away with fume wise in an open air design. I've read somewhere (ars?) that they've got a 10 month limit on the structure's use.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:Working conditions by Anonymous Coward · · Score: 0

      this makes me wonder about working conditions. e.g. heat & cold. Also safety. I'd also wonder about environmental concerns. There's a lot you can get away with fume wise in an open air design. I've read somewhere (ars?) that they've got a 10 month limit on the structure's use.

      Well if you believe the web site, this kind of structure might have R-25 insulation and almost no air leakage. This is likely comparatively cheap to heat and cool compared to a lot of big buildings. I think I saw a 25 year rating as well. It all seems too good to be true. Not sure if there is enough structure there to really trust it for 25 years.

    2. Re:Working conditions by WindBourne · · Score: 1

      DIA/Denver International Airport is basically a tent. It was cheaper than normal buildings to put up and has been MUCH cheaper to operate than normal buildings. For example, the tent is white and reflects the sun. At the same time, it allows a lot more heat out than a normal building would. As such, it is cheaper to HVAC.

      When we built DIA, our temps used to run from -35 to 40C, and still the tent works fine.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    3. Re:Working conditions by djinn6 · · Score: 1

      You know roofs can also be painted white, right? Also, what do you do in case of a tornado or hurricane? Or hail for that matter.

  18. Good sign by Anonymous Coward · · Score: 1

    So Tesla is obviously struggling to keep up with demand, but how is this a "sign of desperation"? It's a sign of how popular the cars are. And they still have money to burn, so where's the problem?

    1. Re: Good sign by Anonymous Coward · · Score: 0

      It is a sign that they won't be able to satisfy demand. And that's usually the end of the business.

      The only question is who'll buy the assets.

    2. Re: Good sign by Anonymous Coward · · Score: 0

      >It is a sign that they won't be able to satisfy demand. And that's usually the end of the business.
      Why's that? If there are a line waiting to buy your product, that means you will sell every item you build. This also mean you can raise the price and make more money. Yes, some part of of the line might start to dissipate, tired of waiting, but if line is moving forward (and it looks like it does), then I do not see any issues with that.

    3. Re: Good sign by shilly · · Score: 2

      Being unable to satisfy all of your demand is literally the opposite of being the end of a business. It's an existential requirement for a business. If you satisfy all the demand, and therefore have no demand left, you go out of business because you're not generating any more revenues.

      Apart from that, you were right on everything. Well done!

    4. Re: Good sign by Anonymous Coward · · Score: 0

      Lol!! Demand is literally it's life force. Thats not the end of a company lol.

    5. Re: Good sign by Anonymous Coward · · Score: 0

      Not if the reason you can't meet demand is rampant quality control problems and production failures, which is why Tesla can't make cars for orders it promised to meet years ago by contract.

    6. Re: Good sign by Anonymous Coward · · Score: 0

      that's only good when your factory is pumping out the expected volumes and you are meeting your production targets. Currently they are a long way under target and the reason the line exists is they are failing to deliver.

    7. Re: Good sign by Anonymous Coward · · Score: 0

      LOL, demand is "life force" if you can deliver. If you can't it's only lost sales and refundable deposits. LOL.

    8. Re: Good sign by LynnwoodRooster · · Score: 1

      It is the end of a business if you lose money on each item you sell trying to meet all that demand. More sales means more losses... And before the Tesla fans come in and say I'm wrong - check the Tesla financials. You'll see they lose money before you even bring in things like R&D and interest payments. Just sales of items and Selling, General and Administration puts them into the red.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    9. Re: Good sign by shilly · · Score: 1

      I didn't say it was sufficient. I said it was necessary.

    10. Re: Good sign by shilly · · Score: 1

      I wasn't making my point in order to defend Tesla. I was pointing out the obvious stupidity of an argument that unsatisfied demand means a business is doomed. In doing so, I also didn't assert that the only thing a business requires to survive is unsatisfied demand. That would have been even more stupid. But there is a difference between necessary and sufficient, which appears to have flown right by you.

    11. Re: Good sign by Anonymous Coward · · Score: 0

      You're just stupid. Tesla is unable to satisfy not some abstract demand, but specific demand - placed pre-orders. Not being able to deliver on your promise has consequences, and they'll catch up with Musk, nevermind the crazy investors.

    12. Re: Good sign by LynnwoodRooster · · Score: 1

      Demand is irrelevant if you cannot meet it, or you lose money by meeting it.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    13. Re: Good sign by shilly · · Score: 1

      I'm really not stupid, and you really are. The consequences of not being able to meet specific demand in the long run will be ... what, exactly? Oh yes, the demand goes away. And at some point thereafter the business fails. Because, per what I said at the outset, businesses need demand for their products if they wish to survive. If the demand dries up, they go bust.

    14. Re: Good sign by shilly · · Score: 1

      Losing money on meeting demand does not make demand irrelevant. Have you really never heard of the investor J-curve? Have you never heard of the concept of runway? None of this is to say that Tesla won't run out of runway. It may fail for any number of reasons. But for damn sure it needs customer demand, along with every other business in the world.

    15. Re: Good sign by LynnwoodRooster · · Score: 1

      I have. I also know that your product has to have a chance to be profitable as well. Right now, COGS (COGM + sales cost) loses them $300+MM a quarter. That is before general administration, R&D, capital expenses, interest costs, etc. I know Tesla hates the dealer model, but there's a reason most companies use it - they can push the end cost of sales to another person, and thus cut their own costs. Tesla just isn't structured right now to make a profit, even with 10X production.

      It's like the old Pets.com or Webvan approach. Yes, you would be profitable if you owned 90% of the market. But to get to that Microsoft-level of market dominance in those markets (or in the car market) is essentially impossible, or will at least take decades. And that means losing money on every transaction for decades...

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    16. Re: Good sign by LynnwoodRooster · · Score: 1

      Just to follow up on my other reply..

      Tesla spends about $686MM on SG&A, and has 109 stores. They have essentially zero marketing as well. Ford spends $11,557MM on SG&A, has 3100 dealerships, and spends a lot on advertising. Let's assume that the SG&A costs are basically all in the sales channel. The cost per dealership - including the cost of advertisement to support them, is around $6.3MM for Tesla versus $3.7MM for Ford. Essentially, Ford is getting dealerships for a lot less money.

      Now, Tesla benefits from selling vehicles at MSRP - the dealer does not take a cut like it does for Ford. That's why Tesla's gross margin appears so good compared to Ford (or other manufacturers). However, total cost for delivery of vehicles is in favor of Ford. They still turn a healthy profit from COGS while Tesla runs a loss at that point. Ford makes that profit, even though they share some of the gross revenue with their dealers. Their cost of customer acquisition is effectively lower - because they do not carry the full (or probably even the dominant) load of sales channel expenses.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  19. Thinking about cars by AHuxley · · Score: 0

    USA? Go with looks and an unskilled production line. Change up the chrome looks every year. Keep profits up with an agricultural engine design for decades.
    UK? Go expensive with hand crafted quality. Want a low cost car? Nationalise the car factory and use parts bins.
    Germany? Make it good. Good parts. Good quality. Good expert workers. Other nations will pay for quality and quality parts.
    East Germany? Steel is too expensive. Use plastic. Make people wait years for their very own car. Try Geschenkdienst und Kleinexporte?
    Japan? Make good cars at a lower cost with robots and support a skilled work force.
    South Korea? Robots and lower costs than Japan.
    Soviet Union? Design a car for unpaved road conditions and a very cold climate. Working heater makes for very good car.

    How do robots and delivered parts change all that in 2000-2030?
    To win your going to need that factory Esprit De Corps of a car production line in Japan with the quality control of a West Germany.
    The design smarts only a France and Italy can educate designers with will create a new car look people crave.
    What does the history of UK car production line offer? Governments are not going to be able to pay for an entire car factory every year for decades.
    Having workers working for the gov building cars from parts bins is not going to get the quality design needed.

    Set up a car design company in Italy and France. Move German experts to Japan to consider new factor design. Have the factory parts, robots made in Japan.
    Build car parts factory in South Korea. Build the car production line in Thailand using the design from Japan.
    Ensure the workers in France and Italy are ready with the next years new look. Tool up in South Korea and have the next years production line ready in Thailand.
    Low costs, real style, parts that fit and work, no gaps. Robots that work. Workers who are happy to work.

    --
    Domestic spying is now "Benign Information Gathering"
    1. Re:Thinking about cars by Anonymous Coward · · Score: 0

      That is one of the least insightful analyses I've ever seen.

      What was the last UK car manufacturer that was nationalised? Go on, name it.

    2. Re:Thinking about cars by AHuxley · · Score: 2

      AC did you forget all the UK government holding company efforts of the 1970's? To try and save the UK car production lines?

      --
      Domestic spying is now "Benign Information Gathering"
    3. Re:Thinking about cars by AmiMoJo · · Score: 1

      1970s Britain's problem was more to do with the cars being shit than anything else. People used to take it for granted that cars were unreliable and disintegrated after a few years. Then better foreign cars became available and they wouldn't put up with it any more.

      --
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      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    4. Re:Thinking about cars by DontBeAMoran · · Score: 1

      You forgot to talk about Canada's new cars. Our new maple-syrup-powered cars can run 25000km on only 1.2 litres of maple syrup.

      --
      #DeleteFacebook
    5. Re:Thinking about cars by AHuxley · · Score: 1

      British Leyland has that timeline https://en.wikipedia.org/wiki/... of gov cars. People went for quality from Japan. Reliable in the cold climate.

      --
      Domestic spying is now "Benign Information Gathering"
    6. Re:Thinking about cars by cheesybagel · · Score: 1

      Another Thatcherite. Had the UK government not injected capital into Rolls Royce when they were developing the RB211 jet engine (a pre-Thatcher Conservative UK government from the 1970s) the company wouldn't even exist today. Yet because of that nationalisation, they survived, and are now the 2nd largest civilian turbofan engine manufacturer in the world with only GE having more share of the market.

      The solution was kinda simple, allow partnerships with Japanese companies, to get their know-how. That's what the Chinese have been doing for quite some time now. A lot of people forget that the UK spent decades after WWII paying war debts to other nations, including the US, so a lot of MAJOR sacrifices were done even post-WWII to repay that debt inc. rationing to reduce imports.

      Fact is all car manufacturers end up getting subsidized to a degree regardless of their country of origin.

    7. Re:Thinking about cars by AHuxley · · Score: 1

      The EU tried that "allow partnerships with Japanese companies". The results did not sell.
      EU car company worker quality made good design from Japan totally fail when that was attempted.
      Re " subsidized to a degree regardless of their country of origin.
      All the UK tax payers money that was lost into 1970's UK production lines?
      People wanted good cars from Japan. With real quality control and working electrical systems.

      --
      Domestic spying is now "Benign Information Gathering"
  20. Screw you cheap fucks by Anonymous Coward · · Score: 0

    This is just another way be cheap at the expense of the workers. I lived in a tent in the desert for 2 years (Hi, Iraqistan!). It was miserable. Now imagine working your ass off in one. Some union people need to go burn his tent down.

  21. California isn't Michigan by Anonymous Coward · · Score: 0

    Yeah, you need a big building in Detroit, where it snows. In most places in coastal California, a tent structure will work just fine. Temporary AC is available to rent if you need it (conventions, parties, Easter church services), but most of the time you won't. You don't have to worry about snow loads on the roof in the Bay Area, either.

    Heck, I've been to conventions in Las Vegas in temps >40C (at night!) in large tents.

    1. Re: California isn't Michigan by Anonymous Coward · · Score: 0

      But, of course, a car factory, which has to reliably churn out thousand cars a day is like a 3 day church convention.

  22. In the tent? by Anonymous Coward · · Score: 0

    Have you never painted in a tent? Never hung plastic sheeting to make one? My current booth (I only do small things) is one of those 10x12 greenhouses from Lowes. I mean, I don't know for certain that thiers is inside that tent, but there's little reason it couldn't be. All you have to do is keep the dust away.

  23. Tents by AlanObject · · Score: 5, Insightful

    Have you guys ever been in Denver International Airport main terminal? It's a tent. It gets as hot in Denver as it does in Fremont.

    Snark all you want but just because something is a quote TENT unquote doesn't mean it isn't a robust and practical structure.

    1. Re:Tents by Anonymous Coward · · Score: 0

      Snark all you want but just because something is a quote TENT unquote doesn't mean it isn't a robust and practical structure.

      I agree. Matter of fact, in California, a tent can be safer than a regular brick or concrete building.

      That Tesla factory is just west of the Hayward Fault (earthquake fault line). During a big earthquake, I'd rather be in a tent than in a brick building, because I'd rather have a tent fall onto me than a brick building.

    2. Re:Tents by Rei · · Score: 1

      I just like arches ;) I'm a big fan of structures in compression, not so much of structures in tension.

      --
      I was watching this thing on TV about some guy named Hitler. Someone should stop him!
    3. Re:Tents by samwichse · · Score: 2

      This is a Sprung Structure:

      http://www.sprung.com/structur...

      The people at Sprung call it a "building."

    4. Re:Tents by mjwx · · Score: 1

      Have you guys ever been in Denver International Airport main terminal? It's a tent. It gets as hot in Denver as it does in Fremont.

      Snark all you want but just because something is a quote TENT unquote doesn't mean it isn't a robust and practical structure.

      Note to self, don't fly to Denver.

      Tent indicates its a temporary shelter, using one permanently is very problematic as canvas or synthetics will give way to the elements (wind, rain, sun) long before metal, wood or concrete. So you either need to be replacing them on a regular basis or using them on a temporary basis. In Perth, Western Australia (and you thought Fremont was hot) shade sails are a common thing as they provide shade to a large area for minimal cost, the biggest problem is that they need replacing every few years and maintenance several times a year.

      I'll get modded down for daring to question THE MUSK... but it seems they haven't thought about this long term and that seems to be an endemic at Telsa.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
    5. Re: Tents by Anonymous Coward · · Score: 0

      You should get modded down for pointing it something so basic, and thinking it's insightful. I really hate that. You really think you are so smart that you thought of this, and no one else did? Wow. Just because you can't think of any future plans, doesn't mean no one else can either.

    6. Re: Tents by Anonymous Coward · · Score: 0

      By that logic, since everyone here is a genius, we never need to comment again. Everyone would have already considered every angle, so no need to discuss, right?

    7. Re:Tents by aicrules · · Score: 1

      If the runways were made of tents, then perhaps that would make sense. Nothing about the terminal being a tent implies any safety concerns for flights into and out of that airport.

    8. Re:Tents by dgatwood · · Score: 1

      Tent indicates its a temporary shelter, using one permanently is very problematic as canvas or synthetics will give way to the elements (wind, rain, sun) long before metal, wood or concrete. So you either need to be replacing them on a regular basis or using them on a temporary basis.

      Lots of food courts in shopping malls are under translucent tents. And Google's Charleston East campus is going to be a giant tent. Do you suppose all those folks might know something that you don't? Like the fact that the cost of a few thousand bucks in canvas every ten years is a lot less than the cost of, for example, glass? :-)

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    9. Re:Tents by Anonymous Coward · · Score: 0

      If Tesla is using these, they are in good company. Intel uses them too at their D1X fab.

    10. Re:Tents by rogoshen1 · · Score: 1

      i'd rather be well away from multi-ton robots and cars in various stages of assembly. But that's just me.

    11. Re:Tents by nasch · · Score: 1

      In the case of the DIA terminal, the "regular" replacement interval is expected to be over 50 years.

    12. Re:Tents by samwichse · · Score: 1

      Interesting. Didn't know that...

  24. You're all wrong by raymorris · · Score: 3, Informative

    Brookhaven National Laboratory is on Earth. They achieved at least 4 trillion degrees Celsius.

  25. Cars are OK in the open air ... by perpenso · · Score: 3, Insightful

    Its an assembly line for a product that will live in the open wind swept air, rain and mud, snow and salt, etc. Things that need to be sealed were likely sealed at the subassembly plant before delivery to Tesla. Plus they will still have a clean room for steps where there would be an issue, such as painting. For many stages, bolting in instrument panels, consoles and seats, bolting on doors, etc what is the issue? Is there an issue for welding frame components, given the material thrown into the air during welding I kind of doubt it?

    What are the open air and humidity problems that you are referring to?

    1. Re:Cars are OK in the open air ... by Anonymous Coward · · Score: 1

      Jeez, Tesla fans are really idiots.

    2. Re:Cars are OK in the open air ... by Anonymous Coward · · Score: 0

      Jeez, Tesla fans are really idiots.

      Other than having to take a swiffer to all the visible surfaces to collect dust, what are the tesla fans missing in terms of exposure to wind blown air during manufacturing?

  26. Tents can be air conditioned by Anonymous Coward · · Score: 1

    This is just another way be cheap at the expense of the workers. I lived in a tent in the desert for 2 years (Hi, Iraqistan!). It was miserable. Now imagine working your ass off in one.

    Obviously you were not Air Force, otherwise you would be aware of the fact that tents can be air conditioned too.

  27. Europe's coming factory by WindBourne · · Score: 4, Interesting

    Since most of the robotics come from Germany, I am guessing that the next factory will be in Europe, possibly Germany or France. It should be easy to set up a quick and inexpensive tent, followed by robotic lines.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:Europe's coming factory by EnsilZah · · Score: 2

      Yeah, Elon recently tweeted this:
      'Germany is a leading choice for Europe. Perhaps on the German-French border makes sense, near the Benelux countries'

    2. Re: Europe's coming factory by Anonymous Coward · · Score: 0

      Yeah, the German-speaking bit of France. Germanic quality for French prices. French assholes.

    3. Re: Europe's coming factory by stooo · · Score: 1

      >> Yeah, the German-speaking bit of France. Germanic quality for French prices. French assholes.
      Yep. And swiss customers.
      Win-Win-Win.

      --
      aaaaaaa
    4. Re:Europe's coming factory by Oxygen99 · · Score: 1

      That could be fun given the differing attitudes of Elon Musk and Western Europe toward trade unions...

      --
      I had a dream, bright and carefree, but now there's doubt and gravity
    5. Re:Europe's coming factory by bgarcia · · Score: 1

      Tesla has already stated (at the 2018 annual shareholders meeting) that they're close to an agreement to put the next factory in China.

      --
      I'm a leaf on the wind. Watch how I soar.
    6. Re:Europe's coming factory by Anonymous Coward · · Score: 0

      LOL, Aren't you in for a surprise.

    7. Re:Europe's coming factory by WindBourne · · Score: 1

      No, they said 'factory', NOT 'next factory'. That is a huge difference. And considering that Tesla sells a great deal more cars in Europe than in China, I would be amazed if China comes first. Keep in mind that if a factory is cheap to put in Europe, that he has just as much, if not more, incentive to go with Europe. And with all the gear there, it would be cheap, easy, and fast.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    8. Re:Europe's coming factory by WindBourne · · Score: 1

      I wish that ppl would stop pushing this BS. It is as bad as when ppl claim that he is getting rid of the robots.
      Elon Musk has NO issue with unions. He has told the employees that if they want a union, go ahead and create one, though he points out that they will lose their stock.
      Where he DOES have an issue, is with UAW and other corrupt organizations. The UAW, like many large blue collar unions, are ran by ppl that are as corrupt as the businesses that they work for. Mafia has been in teamsters over and over and over. Look, Jimmy Hoffa was real. He OWNED the Teamsters. ANd he was part of the mafia. His son now runs UAW, and he is connected with Mafia as well (though I do not know to what degree).

      --
      I prefer the "u" in honour as it seems to be missing these days.
    9. Re:Europe's coming factory by Anonymous Coward · · Score: 0

      Slightly more https://1reddrop.com/2018/06/1... not a great deal more.
      Everyone knows the next factory will be in China, because thats where the growth and money are.

    10. Re:Europe's coming factory by Anonymous Coward · · Score: 0

      Of course he would 'say' that. It's illegal to say anything else, and unlike you he isn't an idiot.
      But he clearly hates them and is not going to go to germany where they buy only a fraction of the Tesla's that China does.

    11. Re:Europe's coming factory by Anonymous Coward · · Score: 0

      WIll those countries hand elon a big fat stack of money?

      They will? Next ones in that country!

    12. Re:Europe's coming factory by WindBourne · · Score: 1

      right.
      Lets see. USA, China, and Canada account for 68%. That means that Europe is somewhere around 32%. I would take Europe's 32% over China's 16%.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    13. Re:Europe's coming factory by Anonymous Coward · · Score: 0

      No way is Europe 32%, show some evidence.
      Teslas just got a big price drop in China too, and the growth there was already faster.

    14. Re:Europe's coming factory by WindBourne · · Score: 1

      Porky/Red tide. Go read your link above. America, EUROPE, China, Canada, Australia, and Japan are where Tesla is sold. And in that order for sales. Japan and Australia do not even make up 1%. As such, if America, China, and Canada are 68%, that leaves, 32% for .... EUROPE.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    15. Re:Europe's coming factory by CaffeinatedBacon · · Score: 1
      You just can't help yourself can you Windy.

      Japan and Australia do not even make up 1%.

      Is Japan somehow negative? Because Australia is at number 12 with 1% all by itself.

    16. Re: Europe's coming factory by Anonymous Coward · · Score: 0

      So look forward to a totally-not-copied new EV from Tesra Motar China Numba Wun Car Company in 2020 !!

    17. Re:Europe's coming factory by Anonymous Coward · · Score: 0

      European trade unions seem somewhat different to those in the USA, with a much more cordial relationship with management in Germany.

  28. Scammers running out of money by Anonymous Coward · · Score: 0

    others people money at that

  29. Re:please redirect me by Anonymous Coward · · Score: 0

    Tesla bought an already existing factory from GM & Toyota on the cheap.

  30. That's not a moon by Anonymous Coward · · Score: 0

    It's a Mars manufacturing facility prototype!

  31. Not a new idea by Anonymous Coward · · Score: 0

    Hardly a new idea. There was a factory in my town during WW2 that switched to producing equipment for the army. They took out a side wall and extended their factory using tents. Increased their floorplan 10x overnight. Those tents stayed in place for 10 years. Makes sense if you need to increase your output overnight. Your essentials are space, labour, tools and materials. Space doesn't need to be brick and a tents a whole lot quicker to put up.

  32. damned if you do, damned if you don't by Anonymous Coward · · Score: 0

    Musk can't catch a break with these guys now-a-days;

    "It's almost a sign of desperation," he said. "It's a sprint to be profitable in the third quarter."

    If he would have done nothing, they would have called him out on getting his numbers. But Musk doesn't want that to happens, and takes action, only for that to be considered 'desperate'. those analysts are just gigantic a-holes.

  33. Hoovervilles Are the New Industrial Paradigm by Anonymous Coward · · Score: 0

    Elon M., the Tesla CEO who must remain nameless, is running low on other people's money. But he can still dream.

  34. When Tesla goes bankrupt, that'll be good too. by Anonymous Coward · · Score: 0

    All you Tesla fanboi's have the spin machine at Max. Elon got those evil sabeteurs out to destoy Tesla (and no. no he's NOT losing it). Now tents are GOOD.

    And when they go bankrupt, I'm sure it'll be a GREAT thing, since they can start fresh!

  35. Sprung structure by samwichse · · Score: 1

    It's a Sprung Structure, manufactured by Sprung Instant Structures, LTD:

    http://www.sprung.com/structur...

    They refer to it as a prefab building.

    Sam

    1. Re:Sprung structure by kwerle · · Score: 1

      Ouch. It did not take much to /. them...

    2. Re:Sprung structure by RespekMyAthorati · · Score: 1

      Notice that they were founded in 1887.
      Was Barnum&Bailey their main customer back then?

  36. Truss-membrane =/= Tent by Anonymous Coward · · Score: 0

    I've worked in truss-membrane structures. Many years ago I nearly took a job designing them.

    They can be designed super light-weight for fast assembly on unimproved ground. They can also be designed quite complex too. Fully weather-tight, double-wall for insulation, positive pressure capable, laser-fused clear panels for windows, easy utility/HVAC integration in the trusses, etc...

    All this story does for me is provide evidence that Dave Sullivan is a dumb-ass that doesn't know what he's talking about, or more likely, has been paid off handsomely by the short crowd losing their shirts. Either way, the intended effect was not achieved.

  37. Tent factory? by DontBeAMoran · · Score: 1

    This only confirms my theory that the new product out of Tesla is going to be a pop-up camper trailer.

    --
    #DeleteFacebook
  38. You are moron by Anonymous Coward · · Score: 0

    OK idiot, R&D is fixed and finished, interest is fixed and finished. Both those things will go down per car as more cars are made. So the more cars they make the smaller your 'nonsense claimed loss' is. When that number gets smaller and smaller it will turn positive. Selling more cars won't make the number worse, it will make it better. Why you might ask (well if you had a brain) because the cars are profitable to make once those fixed costs are paid.

    1. Re:You are moron by sexconker · · Score: 1

      OK idiot, R&D is fixed and finished

      Uh, not when they want to develop new cars, or update and fix the beta cars they're selling to their beta testers.

      interest is fixed and finished

      So they have no outstanding debt?

      Both those things will go down per car as more cars are made.

      Only if they stay fixed, or don't grow as fast as production does. They're not staying fixed. They're growing. Production is growing very slowly, and growing that production capacity is costing them heavily.

      So the more cars they make the smaller your 'nonsense claimed loss' is. When that number gets smaller and smaller it will turn positive. Selling more cars won't make the number worse, it will make it better. Why you might ask (well if you had a brain) because the cars are profitable to make once those fixed costs are paid.

      The costs aren't fixed. Tesla is still struggling to build a fraction of a real auto factory. They're still bleeding R&D costs to tweak and update the models they've already shipped. They're going to bleed more R&D to make future models. The demand isn't limitless, and competitors exist. If you expect a few thousand cars a week to save Tesla, how many years will that take? Who wants to buy a new 2018 Model 3 in 2025?

  39. Prepare to be disapointed by Anonymous Coward · · Score: 0
  40. Nope by WindBourne · · Score: 1

    where does it say that the NEXT factory will be in China?

    --
    I prefer the "u" in honour as it seems to be missing these days.
  41. Compulsive liars gonna lie by crimson+tsunami · · Score: 1

    Don't know why you are telling me, but I'll claim the easy win. It's written clearly on that page that Australia by itself is 1%, so more obvious lies from you WindBourne.

    1. Re:Compulsive liars gonna lie by Anonymous Coward · · Score: 0

      Dude, 32 vs 31%. What a dumb fuck you are. Go back to suckling on Jinping little cock.

  42. OSHA approved? by Anonymous Coward · · Score: 0

    Expect this to be shutdown as soon as any employee Complains of security issues

  43. So What by Anonymous Coward · · Score: 0

    I'm surprised more manufacturers don't do this at least for initial setup testing and short term expansion. These buildings have more than a few advantages and are used extensively in agriculture these days. They also tend to save you boatloads of money on taxes since they are so cheap to build. The only issues are that they don't last terribly long (5-10 years if not hit by extreme weather events) and I would imagine that it would be a major fight in most municipalities to permit them since they can't rake in the tax dollars.

    1. Re:So What by Anonymous Coward · · Score: 0

      I'm surprised this meets building code.
      The extra accommodations for power, water, compressed air, data, industrial wastes, sanitation... to code (you obviously have no solid surface to run your conduits, pipes, cables) would probably offset any supposed savings from this "economical" building technique.

  44. And costs are expected to go down by Anonymous Coward · · Score: 0

    They're going to save a lot on labor once they start "housing" all the kids Trump is separating from their parents at the border.

  45. Angry old timer. by Anonymous Coward · · Score: 0

    Are you another old timer feeling sad that Windy isn't allowed to get away with his lies anymore now that people are paying attention?
    Let's see,
    you missed the entire point,
    you don't seem to care about his obvious lies,
    you don't like China,
    you think anyone who questions American exceptionalism is Chinese
    you agree with anyone on your team even when they are trivially obviously wrong.
    you jump in with insults because you have no argument

    yep Angry Old Man detected.