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Tesla's New Model Y SUV Hits the Right Note By Playing It Safe (usatoday.com)
Last night, Tesla CEO Elon Musk unveiled the company's brand new electric SUV, the Model Y. The car is only slightly larger than the Model 3 and shares 75% of its parts, leaving many people wanting more. But, as USA Today reports, "The ho-hum reaction to Tesla's new electric SUV is, oddly enough, exactly what the company needs. [F]or a company that needs a little less pizzazz and a little more substance to make good on its promise to become a sustainable force in the auto industry, the Model Y hit the right marks." From the report: It's essentially a crossover version of the Tesla Model 3 compact car, bearing the design hallmarks of a hatchback and sharing the same architectural platform as its car sibling. That Tesla devotees weren't rewarded with sizzling new features on the Model Y illustrates that the company is getting serious about selling vehicles. After all, a compact SUV is precisely what Americans want: a driveable vehicle that puts safety first and flash second. Versions with five and seven seats will be available, with starting prices ranging from $39,000 for the base version to $60,000 for a performance model. If Musk had tried to break new technological barriers or adopt outlandish styling on the Model Y, he would have risked making the vehicle too difficult to manufacture and unappealing to conventional SUV buyers.
The first-available model will start at $47,000 and arrive in fall 2020. You can place a refundable deposit of $2,500 to secure your place in line when the vehicle becomes available. The base model of the Model Y -- the $39,000 version -- won't be available until "sometime in 2021," Musk said. Families can make the Model Y their primary vehicle since the battery range goes from 230 miles to 300 miles depending on the version. That stacks up well against other EVs on the market, such as the Chevrolet Bolt's 238 and the Hyundai Kona's 258. And while techies might not find the Model Y exhilarating, it will come equipped with software and sensors capable of autonomous driving, whenever it becomes legal. But buyers will have to pay for the system upgrade of $3,000 to $5,000.
The first-available model will start at $47,000 and arrive in fall 2020. You can place a refundable deposit of $2,500 to secure your place in line when the vehicle becomes available. The base model of the Model Y -- the $39,000 version -- won't be available until "sometime in 2021," Musk said. Families can make the Model Y their primary vehicle since the battery range goes from 230 miles to 300 miles depending on the version. That stacks up well against other EVs on the market, such as the Chevrolet Bolt's 238 and the Hyundai Kona's 258. And while techies might not find the Model Y exhilarating, it will come equipped with software and sensors capable of autonomous driving, whenever it becomes legal. But buyers will have to pay for the system upgrade of $3,000 to $5,000.
It's not "built" anywhere. Rivian is a startup.
Building a cost-effective mass production system is a hundred times more difficult than building a prototype or two and making some sleek marketing videos. Only one startup has succeeded at it in the US since Chrysler in 1925, and that's Tesla. Many have tried. All but one have failed.
To be fair, Model Y isn't in mass production yet either. But it's certainly closer, not simply due to how many people have been working on it for how long, but in particular because it shares 76% of its hardware with the Model 3, which is already in mass production.
If I ever become wealthy and mad, I'll leave Companion Cubes on desert islands for shipwreck survivors.
Long term situation looks decent. Though the pent up demand is gone, the base model will sell well. That will help with economy of scale. It is believed base model gross margin is not 20%. But it is not negative either. With all those slash and burn cost cutting the Q1 results will not be that bad.
Come 19Q2, the 750 million dollar loss 18Q2 will roll off the trailing four quarter view. So Tesla might make be profitable and will be included in SP500. That will bring much needed price support due to index fund buying. By that time world wide pent up demand will be gone. But base model will have margins in 10% range and the company will be able chugg along.
Demand will pick up for the model 3 in later half of the year. Tesla has not done leasing, advertising, fleet sales etc. It should be able to easily sell 350K model 3s world wide with an average sales price of around 40K.
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
You do realize that there were people taking rides in it all evening, right? Were they in on the conspiracy?
Heard from a six foot guy who was in the back. Fit comfortably, although he did hit is head when they went over a speedbump. Probably only best for average height or short adults back there.
If I ever become wealthy and mad, I'll leave Companion Cubes on desert islands for shipwreck survivors.
To each his own, I have a model 3 and I find it so weird when I have to use an old style car like my wifes volt with all the buttons and the tiny display. I liken physical dash buttons to blackberries vs iphone soft keyboards when it came out. A lot of people here bitched and moaned about it but in the end people voted with their wallet and like me they preferes the softkeyboard.
I think this will be similar, its a trade off but I like the pros more than the cons.