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Musk to review all of Tesla's expenses in new cost cutting plan

reuters.com

201–210 of 248 posts

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#201
post #60

Definitely less than 10 months. Demand is dropping off as (a) serious competitors come onto the market e.g. Mercedes EQC, (b) the time between a model refresh increases e.g. S and X models and (c) the concerns over customer service increase. And I still believe that the Model 3 was a mistake to release at this time. It is cannibalising their higher priced models and squeezing the company's overall gross margins at at…

I think Porsche Taycan is a bigger threat as it will target Tesla's high profit margin cars. I would assume people who spend 80-120k for cars would prefer Porsche dealerships and service, while Tesla sales and service centers are inundated with $40k buyers issues. I checked EQC, it still felt like a compliance/test vehicle compared to Taycan, which Porsche has been testing in several continents under extreme weather…

A 4 door Porsche is an abomination, along with that stupid SUV.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#202

Earlier quoted context omitted.

A 20 year old car today is heavily dependent on software, and they still seem to work.

Are they though? The software in 20 year old cars is more akin to that in a digital wristwatch (as in, super basic and never needs updating). Also, old cars contain far more electro-mechanical components than software. In comparison, modern cars are Internet-connected computers on wheels (especially Teslas). For example, my 1999 VW has a mechanical headlight switch, dead simple mechanical starter engagement, manually…

Software doesn’t just fail, though. If it works today, it’ll work tomorrow.

You could lose features that depend on connectivity, but you’ll still be able to drive.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#203
post #185
post #161

Earlier quoted context omitted.

* 1000 to 10000 people making those $100 purchases maybe not too extreme? Said they posted over a billion so I’d guess pretty large number of employees

The issue isn't the $100 limit - the issue is having the CEO give approval. I would expect that such a small amount would be approved by someone much closer to the engineers on the hierarchy. Not to mention what a poor use of the CEOs time!

"let's pay this guy $800/hr to approve $110 purchases"

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#204
post #71

Earlier quoted context omitted.

So much this... There are texts written with military contexts in mind from which you can extrapolate non militaristic lessons (The Book of Five Rings, for instance). The Art of War is not one of them. It's not surprising to see it quoted a lot though. I'll leave with a quote from Naggum; whether one thinks it's fair to Gates matters less in this context than if there's agreement that the outlined problem exists: "th…

Sure, it isn't exactly the same situation as a war, where one country is fighting his neighbor country to the death. But to say that the art of war has no lessons to teach those of us who are not literally in a war is ignorant.

Perhaps I am ignorant. I've only gone through one translation of The Art of War, perhaps others are better, but for all such texts there are always motivated translators purposefully not capturing what was originally written in order to make it seem more broadly applicable.

This discussion has reminded me that your oft-quoted "quote" doesn't seem to originate from any actual translation, but is a rephrasing of a bit of chapter 1, where it says "Therefore, when able, seem to be unable;" followed by a lot of other things. It's also worth pointing out what immediately precedes the 'therefore', which is: "Warfare is the art of deceit."

That simple line left out of the version you quoted is crucial. Context matters, and applies for quotes even when the original is in English (see the full context of Knuth's premature optimization quote for instance). The context here is about deception in war. At best you could extrapolate it to situations where deception against your foes is needed in general, but even that is stretching things, and certainly doesn't apply all that much to publicly traded companies like Tesla. The closest analog for them is guarding trade secrets. Besides, deception is usually frowned upon outside of armed conflict, and if a public company deceives the wrong people about the wrong things, and gets called on it, then the company and its higher ups aren't going to have a good time. For example, cooking the books to 'appear strong' would be a rather egregious deception.

Some forms of deception can have a more legitimate purpose in certain business dealings, it's true, as I'm now reminded of Gates' love of poker and some of his great bluffs in MS's early days. Though the consequences of failure wouldn't have been beheading. I'll quote the rest of the paragraph from my translation though and let you decide if Sun Tzu has anything to say about this narrow form at the poker table or when trying to arrange multi-party business dealings promising future deliveries:

"when nearby, seem far away; and when far away, seem near. If the enemy seeks some advantage, entice him with it. If he is in disorder, attack him and take him. If he is formidable, prepare against him. If he is strong, evade him. If he is incensed, provoke him. If he is humble, encourage his arrogance. If he is rested, wear him down. If he is internally harmonious, sow divisiveness in his ranks. Attack where he is not prepared; go by way of places where it would never occur to him you would go. These are the military strategist's calculations for victory--they cannot be settled in advance."

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#206
post #77

Earlier quoted context omitted.

6 months ago Musk said they would profitable going forward. The trade war might be part of the problem. They need to get the Shanghai factory online. https://www.digitaltrends.com/cars/tesla-hurt-by-trade-war/

If they would focus on building cars they might have been there but they are betting the farm on FSD and its that short term push that might end up hurting the most. Plus as an owner, their priorities are just whack. Next update we get a Sentry icon on the main display and, wait for it, animation of rain on the car if its raining. I guess that is better than video games. A Toyota Camry, scratch that, Corolla, can res…

I think you’re overestimating FSD current vs. sunk costs. They’re not betting the farm unless you mean the model 3 lease return but that can always change.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#207

Earlier quoted context omitted.

> their demand is still going strong. This is what's not clear, and a major risk factor for them. I think Musk views 35k as the inflection point where quantity demanded sky rockets and he's not been able to get there. Seems like a lot of decisions were made based on assuming that would happen by 2019.

Agree. Do you think price is the limiting factor for lackluster demand? Maybe if they can make model 3 cheaper than 35k demand will rise

I"m not sure, but i think there was a lot of pent up demand for a high end electrical car, they're in the process of serving that demand globally, and then what? Do deliveries plateau or even drop? There's stories about it dropping already, at least for the models S and X.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#208
post #60

Earlier quoted context omitted.

I think Porsche Taycan is a bigger threat as it will target Tesla's high profit margin cars. I would assume people who spend 80-120k for cars would prefer Porsche dealerships and service, while Tesla sales and service centers are inundated with $40k buyers issues. I checked EQC, it still felt like a compliance/test vehicle compared to Taycan, which Porsche has been testing in several continents under extreme weather…

A 4 door Porsche is an abomination, along with that stupid SUV.

That stupid SUV is what keeps Porsche alive.

Personally I view any Porsche bigger than a Cayman as an abomination, but that doesn't fit with the demand for the company to constantly grow.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#209
post #181
post #10

Earlier quoted context omitted.

Sure... I was planning on buying the $27,500 (after rebate) version. As the rebates have expired, that theoretically priced Model 3 no longer exists. At $27,500 it was an amazing deal - better than an Accord or Camry.

A Tesla Model 3 at $27,500 would have been such an absurdly sweet deal the demand would be ludicrous. If they could have snapped their fingers and manufactured as many as they needed, I would guess based on passenger vehicle sales numbers, they could have sold 300,000 in a single quarter at that price. They barely build that many in a year. I’m sorry, you were never going to see a Model 3 for $27,500. With the way th…

I was certainly in the top few people placing my reservation. High enough that if they were delivered in order of reservation, I’d have my $27,500 Model 3. They opted to maximize their revenue by delivering the expensive versions first. A Tesla won’t be my next purchase.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#210
post #167

Earlier quoted context omitted.

At a guess, Linear.

You are correct :-)

My mind is blown! I've always associated Linear with precision work, can't believe it was all built on eBay equipment. Doesn't seem very Jim Williams...
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