I short Tesla all the time. There is nothing to worry about because its just one week of goals. Is this sustainable? We will see.

Besides Tesla stock dropped 2.30%.

 

^^ It's the short analysts that saw the stock skyrocket premarket and at open, and then release some sort of stupid article that the production is not sustainable .... lol

 

They got that production by cutting heavily the amount of welds originally engineered and building cars in a giant tent, what could go wrong.
http://www.businessinsider.com/tesla...-a-tent-2018-6

https://teslamotorsclub.com/tmc/thre...-welds.121411/

 

Interesting, but I wouldn't say they cut "heavily". They reduced 300 welds out of over 5,000 which is 6%. Time will tell if this has impact on quality or if they were truly over-engineered and not necessary. As a note, the article pointing this out notes the engineers are the ones who identified this - and the executives gave the green light to eliminate these 300 welds based on feedback from the engineers. I fully believe everyone associated with manufacturing the Model 3 was asked to identify every single inefficiency in the entire process to allow them to hit their production target(s).

There is tremendous variation between what investment firms are calling on for the stock price in the next 6 to 9 months. Some are calling for under $200 while others are calling around $425 to $450. I'm not a share holder so I don't have a dog in the fight but it will be interesting to watch from the sidelines.

 

"In recent weeks, company executives concluded they could produce Model 3 underbodies with fewer spot welds than they had been using. The car is still held together by about 5000 welds, but engineers concluded that some 300 were unnecessary and reprogrammed robots to assemble the steel underbody without them."

Yes the "Executives" concluded that the "Engineers" made the right call to eliminate some 300 unnecessary welds.


GM, Toy, Ford probably do the same thing-- you just don't hear about it because Tesla is under the microscope.

 

i think it was a lose lose situation for Tesla, even if they did not reach the production goal. stocks are down quite a bit today

 

tesla is an engineers company so the bean counters do not get to determine how many welds are necessary. on the other hand gm and others are run the other way around which explains why everytime iihs come up with a new crash test their cars fail miserably.

 

Yes, I know there is another Tesla thread but it's gotten pretty long in the tooth. But the moderators can append this if they want.

An article on Ars Technica says that the $35K price point is no longer mentioned on the Model 3 pages as of last Friday.

A spokeswoman said in response "We're just focusing on the options that are available now for our customers so that it's more clear. There's nothing else to it." Whether you think this is just spin is up to you. Tesla has said in the past that the base $35K model will eventually be sold. Many depositors are fuming that by the time the base model comes out (perhaps next year), the generous $7.5K federal rebate will be greatly reduced. I can understand Elon's desire to sell the higher-margin $50K+ version as a way of pulling in much-needed cash, but this smells a lot like bait-and-switch to me.

https://arstechnica.com/cars/2018/07...avent-changed/

 

Yup you're right. Checked the main website. RWD $49,000, Dual Motor AWD $53,000, Performance model $64,000.

Also with Tesla hitting 200,000 cars, the $7,500 tax credit is now going away.

 

Not sure how this is a bait and switch. Tesla doesnt control the tax incentives nor did they determine the 200K vehicle limit. If Tesla doesnt sell the higher priced models, they wouldn't have enough cash flow to continue and then no one would have cars.

 

lol, it has nothing to do with tax incentives... they removed the base option that they advertised at $35k, so now it is $49k on their page.

Previously they advertised Model 3 as $35k car before incentives. This has led many comparing it to other cars like Chevy Bolt, which was actually more expensive so obviously Model 3 was much more exciting vehicle.... now it ends up being $14k more expensive than previously advertised, lol.

It is constant lies and deceit of both perspective buyers as well as investors.

 

I'm a fan of Tesla and Musk but have to say I'm disappointed by this. I agree with the other poster(s) who say this is a separate issue from the $7,500 rebate - removing the $35k option is definitely in the hands of Tesla. I wonder what the logic is/was behind the decision.

And not that this matters but just for clarity, as I have pointed out in the other Tesla threads the $7,500 rebate does not fall to $0 because they hit the production limits. It continues to drop over time in defined increments (I think $1,800 or so) - so the current rebate level down should be about $5,500. This is the case for all auto manufacturers in the electric space.

 

The commenters in that Ars article say that Tesla has already hit the 200k point, so the the credit drops to $3750 starting January one, then about $1800 in april.
Some folks are saying the tax credit thing was badly designed, it should have been 200k for all manufacturers. But currently, Tesla loses the $7,500 credit but other vendors can still offer the credit on their cars.

 

Yes, you're right actually. I forgot that the credit gets cut in half as the interval goes down. I'm not sure I understand the comment about the "200k for all manufacturers". My understanding from reading other articles in the past was that the $7,500 credit runs for any manufacturer until they hit 200k in EV unit sales and then it drops to $3,750. Perhaps the argument is Tesla is getting punished more than other manufacturers since Tesla exclusively manufactures EV's and it would take other manufacturers substantially longer to hit the 200k mark since they have a more blended portfolio and slightly minimal EV offerings..? I don't see how the government would structure the credit differently for one manufacturer vs. another.

 

Some people will continue to drink the Teslas coolaid and likes to have the mini sub shoved it up where it hurts by Elon and Tesla.