It has to happen sometime, why not at the end of a quarter to get the new lines up for the new quarter?
no one knows why any company does anything except for themselves. You, me, we’re speculating about possibilities. I like the company and give them some benefit of the doubt and how they want to stick to their mission statement of transitioning the world towards sustainable energy and transport. They’re obviously a company and need to make money but making their cars more affordable sticks with their goals. Being increasingly/massively profitable doesn’t help anyone but shareholders. Elon was temporarily the richest person in the world and he still works 6-7 days a week and gets 6 hours of sleep a day. If he was in it only for the money why wouldn’t he just stop? There’s a few 8 figure physicians here that still work. People/companies can have motives that’s not just financial.
The current ev tax credit proposal would give Tesla another 400k cars sold in the us that would qualify for the $7k tax credit for buyers before another phase out.
the model s/x refresh will relight demand. There’s quite a few people that have been putting off upgrading their car until this refresh was done. How significant that number is, I’m not sure.
That mega casting for the backside of the model y puts 70 parts into 1 makes that sub assembly more efficient. Saves the robots and labor putting those 70 parts together. Saves the factory space those robots used to occupy. Instead of spending time to put all those parts together now it’s essentially stamped out in 90 seconds. they’re in the process of doing the same for the front of the car. Now their future factory lines will use less space than competitors and be increasingly efficient.
This is one of the reasons why Tesla is revolutionizing manufacturing. They’re vertically integrated and can make these changes while oems are entrenched in their supply chains and contracts. If Ford/gm wants to do the same, they have to ask the supplier to possibly do it for them. Which the supplier doesn’t want to do because it costs money for r&d, retooling, and makes them change their entire business. When Tesla does it, they do it internally. When at first it’s not possible, they create a new metal alloy that makes it possible. When there’s not enough batteries in the world, they’re creating a new process to make more efficient batteries faster.
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Retooling NEVER should happen in the last two weeks of the quarter! I don't think one "knows" . That is a PR answer. Passing the cost savings on to the customer?Originally posted by Nysoz View Post
Really? Do you believe that? Do you think Tesla is going to get tax incentives? Never did hear the cash flow without government incentives.
From the business model, backlogs are shrinking on old products. You think the "refresh" is going to unleash a wave of pent-up demand of fence sitters?
70 parts into 1? Typically that is called a sub assembly, a relocation of assembly operations. The logic is missing, PR explanations. No more no less. It may turn out favorable, who knows. If you wish to invest in BTC, I would not suggest doing it in a manufacturing/marketing organization. PR move.Leave a comment:
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The line shutdown dec/Jan at the Fremont factory was the model s/x lines and we now know that was for retooling for their refreshed models. Otherwise there are always temporary line pauses for generalized maintenance.
They reduced the price of base models and increased price of the performance ones. It still takes approximately 3-6 weeks to get a car across the us so there’s still an order back log. They still sell every car they make and there aren’t huge lots of new cars waiting to be sold.
They’re also always battery constrained. Selling more of the smaller battery packs nets them more money overall I think. Then they may be incentivizing people that were on the fence to afford a Tesla into getting one now. Then with more Tesla’s on the road later on upcharge them on the high margin software.
it will all come down to margins on the cars in the short term. Retooling their lines cost money, Developing their mega casting cost money and that was reflected in their last earnings. But now they replaced 70 parts into 1. They eliminated the robots and manpower to speed up that part of the manufacturing line. Is that part of the reason for decrease in cost and passing on the savings to customers?
if the ev tax credit comes back for Tesla, now you can get a standard range model 3 for $29990. If your state has an ev incentive it becomes $27990 like in California. Factor in the difference in maintaining the car, buying the Tesla will soon become a possibly good financial decision.
on a side note, Tesla was rumored to buy their btc at 31-33k. 62% up since then. I’m neutral at their decision to do so. It’ll be interesting to see how this will impact their reporting.Leave a comment:
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Model 3 and Y were the factory shutdowns in December-January I believe. I speculated that it was demand driven.
Price cuts are market share moves that seem to be reactive. I take these as a confirmation that order demand is weakening substantially. The question in quantifying these moves is how much is market share versus simply pricing to cover the variable cost and actually just contribute to the fixed costs. Every one of these vehicles COULD be being sold at a loss that only recovering some of the fixed costs. This is the classic over capacity issue of manufacturers, not just cars. The way out is pump up the volume with current or new products that use the capacity. You will never see public release of these types of items until big hits are taken to restructure or reserve for idle capacity. Repurposing a manufacturing facility for new models is expensive.
Would be interesting to see how their order backlog lines up with capacity.
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https://www.torquenews.com/1/nio-aut...slas-autopilot
NIO's “NIO Autonomous Driving (NAD)” brings the company's electric vehicles one step closer to Tesla. With the newly presented system, fully autonomous driving should become possible soon, as was reported at NIO Day 2020. For this, the start-up relies on NIO Aquila, which is the name for the first high-resolution camera (8 MP) that is installed in a vehicle. In comparison, Tesla uses a 1.2 MP camera.
The higher resolution and display enables the NIO ET7 to recognize objects and obstacles at a greater distance and to let the system react accordingly.
NIO underpins this with numbers, so the system is able to recognize vehicles at a distance of 687 meters; Tesla at 229 meters. Traffic cones would be seen at a distance of 262 meters (Tesla 87 meters) and people at a distance of 223 meters (Tesla 74 meters). Looking at these numbers, it can be seen that in fact an earlier reaction of the system seems plausible.
Nios hardware does appear to be objectively better on the car. The question becomes how much is too much? Can better software overcome the cheaper hardware choice? Will Tesla have to upgrade their cameras or reposition them or can Tesla achieve what they say they can with current software/hardware? I don’t think Tesla would add lidar unless some competitor beats Tesla to full autonomy with it.Leave a comment:
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