Elon's ROAs (returns on announcements) are getting slimmer.
Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
31–40 of 318 posts
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#32Since 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…
”Some lines are at only 500 cars a week.”
That sounds better than what Tesla claims. http://files.shareholder.com/downloads/ABEA-4CW8X0/549293785... (emphasis added):
”Other lines, such as battery pack assembly, body shop welding and final vehicle assembly, have demonstrated burst builds of about 500 units per week and are ramping up quickly.”
If you can do burst runs of 15 km/hour, that doesn’t mean you can run a three hour marathon.
”The company burned $1.4 billion and has $3.5 billion in cash. Raising money shouldn't be necessary.”
To get that $1.4 billion in revenue, they will need to sell 40k Tesla 3s at $35k each, or 3,000 a week. To get it in margin, even assuming the average model 3 will sell for $50k, they will have to sell 12,000 a week or so (at 20% margin)
=> If things go as planned, I guess they will need about half their money in half a year or so before turning a profit. That doesn’t leave very much in case things go worse than planned (for example, they plan for 25% margin on model 3, but currently don’t have that on their more expensive models, and they plan to sell more of their expensive models, but can decrease production, so, presumably, they have quite a few of them in inventory)
Tesla may have a fantastic future ahead of it, but it also may fail spectacularly fairly soon, or just have a decent future ahead of it that doesn’t warrant its current share price.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#33I feel like I should cancel my reservation of Tesla Model 3. Something tells me that subscription-based autonomous cars will be here before my Model 3 and will render purchasing cars useless. Anybody in a similar boat?
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Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#34SeekingAlpha predicted this a few weeks ago: https://seekingalpha.com/article/4114125-will-tesla-zero-mon... "Leading up to the end of September, we saw new-high Model 3 VIN numbers in the wild almost every other day, culminating in number 521. But since the beginning of October, nothing. I can’t find a single one above 521 with VIN picture evidence on any forum. It’s unlikely to end up this way, but the sole evidenc…
One or another amateur writer on that site predicts the bankruptcy of Tesla every other week. Even a stopped clock is right once a day.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#35What is the main practical selling point of a model 3 over, say, a leaf? Longer range and that's it?
Good thing tesla has a lot of vertical investment in batteries. The market is very competitive.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#36Earlier quoted context omitted.
"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 ne…
You could substitute Apple with Wal-Mart in your comment and every bit would be just as true. Sometimes forcing your supply chain to pinch every penny works out the best for your shareholders.. sometimes focusing on quality products pays off more in the long run. Time will tell.
Insourcing some things also helps pose a credible threat to suppliers in the future when you tell them to straighten something up or you will insource it.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#37What is the main practical selling point of a model 3 over, say, a leaf? Longer range and that's it? Good thing tesla has a lot of vertical investment in batteries. The market is very competitive.
Fun to drive, relatively attractive, better safety features (active and passive), more interior space (nice for 4 adults, tight for 5), and access to the tesla supercharging network.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#38SeekingAlpha predicted this a few weeks ago: https://seekingalpha.com/article/4114125-will-tesla-zero-mon... "Leading up to the end of September, we saw new-high Model 3 VIN numbers in the wild almost every other day, culminating in number 521. But since the beginning of October, nothing. I can’t find a single one above 521 with VIN picture evidence on any forum. It’s unlikely to end up this way, but the sole evidenc…
One or another amateur writer on that site predicts the bankruptcy of Tesla every other week. Even a stopped clock is right once a day.
Twice
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#39What is the main practical selling point of a model 3 over, say, a leaf? Longer range and that's it? Good thing tesla has a lot of vertical investment in batteries. The market is very competitive.
Supercharger network is a pretty big difference, ChaDeMo/CCS doesn't touch it in terms of real-world charging rates or deployment.
Re: Tesla posts big loss, cuts production of Models X and S to catch up on Model 3
#40What is the main practical selling point of a model 3 over, say, a leaf? Longer range and that's it? Good thing tesla has a lot of vertical investment in batteries. The market is very competitive.
In an EV, longer range is a pretty substantial USP.