Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
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Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#2The first two zones of a four-zone process to produce battery packs are being completely reworked, and this is something they only found out about after they were already failing to deliver on promised production goals?
I've mis-estimated a lot of things in my career, so I'm trying to be sympathetic, but it seems like someone with production line experience should have been able to test individual parts of the production line before committing to thousands of units per month.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#3Since this came out as part of the Tesla earnings, here's my recap from their earnings release and call....
- Tesla will be late getting up to 5,000 units a week of Model 3. It will happen at the end of Q1 instead of the end of this year. The bottleneck is batteries.
- Some lines are at only 500 cars a week. Namely the battery pack assembly, body shop welding and final vehicle assembly.
- The $2.92 a share loss was much bigger than the $2.27 analysts expected.
- The company burned $1.4 billion and has $3.5 billion in cash. Raising money shouldn't be necessary.
- Automotive gross margins fell from 28% to about 18% and will slip to 15% next quarter.
- Auto revenue grew 10% to $2.4 billion as sales of Model S and X grew. Revenue is at risk, though. Tesla will divert resources from Model S and X to the Model 3.
- Tesla didn't say much about China. The company added a supercharger station with 50 chargers in Shanghai, but no word on a new plant.
- Musk expects to spend $1 billion on capital expenditures next quarter. That's consistent with expectations for ramp up for Model 3.
- Tesla installed 109 megawatts of ``energy generation systems'' in the third quarter. It acknowledges this is an underwhelming figure: ``the lower deployments are in large part a result of deliberately de-emphasizing commercial and industrial solar energy projects with low profit and limited cash generation.''
As to the battery delay.... Tesla says it's the suppliers fault. "key elements" of the battery module assembly had to be taken over and redesigned, Musk says.
EDIT
- most importantly, Elon has moved his desk to the giga factory as that is where the largest bottleneck is.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#4As an engineer who has zero investment in Tesla, I truly hope they overcome this setback. Simultaneously, I know from experience that failure is a real possibility.
At this point, it’s nice to have the additional transparancy into the current production bottleneck.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#5Out of curiosity, has anyone who paid the $1000 to get in line for a Model 3 actually heard back from Tesla?
I've never received any communication about timelines at all.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#6TSLA was up 10 points. Now is down 10 points. Interesting time.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#7Out of curiosity, has anyone who paid the $1000 to get in line for a Model 3 actually heard back from Tesla? I've never received any communication about timelines at all.
Me neither. Also, I am trying to get my $1000 back for 2 months now since it probably would take around 2 years until I get my Model 3. They are delaying and delaying the payout, so instead of me becoming a Tesla customer I am hating them more from day to day.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#8Out of curiosity, has anyone who paid the $1000 to get in line for a Model 3 actually heard back from Tesla? I've never received any communication about timelines at all.
Yes. I did get an email. You should be able to login to your Tesla account and 'choose' the Model 3 you want. Based on your choice, they give an estimate on when you'll be able to order the Tesla.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#9Out of curiosity, has anyone who paid the $1000 to get in line for a Model 3 actually heard back from Tesla? I've never received any communication about timelines at all.
You should be able to log into the site and interact with your reservation. You can see your timeline based on the features you want, and request a refund.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#10Since this came out as part of the Tesla earnings, here's my recap from their earnings release and call.... - Tesla will be late getting up to 5,000 units a week of Model 3. It will happen at the end of Q1 instead of the end of this year. The bottleneck is batteries. - Some lines are at only 500 cars a week. Namely the battery pack assembly, body shop welding and final vehicle assembly. - The $2.92 a share loss was m…
"key elements" of the battery module assembly had to be taken over and redesigned, Musk says.
Tesla seems to be taking the opposite approach to Apple here. In my observation, Apple drives its suppliers extremely hard to achieve the quality it requires. Tesla, on the other hand, is too eager to bring any sundry part in house (e.g. car seats). Apple's approach appears to work in that it pushes suppliers to do what's necessary. I worry that Tesla, having already bitten off a large bite to chew, is inviting too much distraction that will, in the long run, not put Tesla in a stronger position (there is a reason most automobile manufacturers outsource their seats after all).