Stories
Slash Boxes
Comments

SoylentNews is people

SoylentNews is powered by your submissions, so send in your scoop. Only 8 submissions in the queue.
posted by martyb on Tuesday August 01 2017, @04:41AM   Printer-friendly
from the production-needs-a-boost dept.

Tesla is beginning to deliver a small number of Model 3 cars, but there are concerns that Tesla will not be able to produce enough cars to meet demand:

Wall Street finally got to see all the details of the Tesla Model 3 during the car's launch event Friday. So far investors have given it the thumbs down with the electric car maker's shares down more than 2 percent midday Monday.

"We believe the Model 3 was as good as or better than expected, and pricing was as expected with considerable initial upsell. That said, the rubber now hits the road, and the fundamental questions remain unanswered," Bernstein's Toni Sacconaghi wrote in a note to clients Monday. "CEO Elon Musk sounds increasingly squeamish about the production ramp." The analyst cited how the $35,000 Model 3 car will not be available until early 2018 with only a higher-priced $49,000 model available this year. He also noted Musk's comment to employees to prepare for "production hell."

Speaking of "production hell", Tesla employees in California are threatening to unionize:

Employees at the electric automaker's factory in Fremont, California, have been agitating for a union since Jose Moran, a production associate, wrote a Medium post in January detailing difficult work conditions at the flagship plant. The bulk of the demands has since centered on improving equipment to reduce workplace injuries.

[...] Musk originally called injury allegations at the Fremont plant "disingenuous or outright false" but has since told employees to report injuries directly to him.

Although the base price of the car is $35,000, that can rise to $55,000 or more after options.

Also at MarketWatch, Ars Technica, and CNET.


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 5, Insightful) by ledow on Tuesday August 01 2017, @07:25AM (13 children)

    by ledow (5567) on Tuesday August 01 2017, @07:25AM (#547545) Homepage

    Again - a problem you can't just throw money at.

    The tech is stuck. The parts productions don't scale. The device ends up expensive. Sure, you can subsidise several thousand of them, hoping to break even. But it's not a practical, long-term solution.

    Now, short-term blips in the stock price mean almost nothing, the same as stock valuations in general when the profit line reads zero. But literally not being able to deliver a new model for over another year, in any kind of significant numbers, is another year where Ford et al play catchup with billions coming in from their other car sales.

    I've said it before. Tesla sells in the tens of thousands per year. Every other car manufacturer is orders of magnitude above that. They're letting Tesla take the R&D hit to see what sells, then when something takes off (electric cars aren't, in any significant number) they'll take over the market in seconds.

    If I were an investor in Tesla, I'd be keeping a close eye. Because though you may not invest for the long-term but for short-term rapid gain, it's going to be a very small window where Tesla actually becomes worth it.

    A billionaire throwing money away on tech is great fun and everything, but it's not business. At best, they'll own a patent that one of the big car people want. The way things are going, though, they don't really do much that the others aren't already capable of.

    Starting Score:    1  point
    Moderation   +3  
       Insightful=2, Interesting=1, Total=3
    Extra 'Insightful' Modifier   0  
    Karma-Bonus Modifier   +1  

    Total Score:   5  
  • (Score: 5, Touché) by Anonymous Coward on Tuesday August 01 2017, @07:34AM

    by Anonymous Coward on Tuesday August 01 2017, @07:34AM (#547549)

    At best, they'll own a patent that one of the big car people want.

    https://soylentnews.org/article.pl?sid=14/06/13/1018228 [soylentnews.org]

  • (Score: 5, Insightful) by coolgopher on Tuesday August 01 2017, @08:04AM (8 children)

    by coolgopher (1157) on Tuesday August 01 2017, @08:04AM (#547553)

    > Again - a problem you can't just throw money at.

    I think a gigafactory or two will prove that statement wrong in due time.

    Don't think of Tesla as a regular company. It's not. Its aim is not to become large, profitable and comfortable, rather it aims to evolve as rapidly as it can possibly sustain (and probably faster yet), and leave behind it a wake which drags everyone else along forward with it. This isn't a company with a vision, it's a vision with a company, and the scale of that vision eclipses any mere single company.

    I clearly sound like I've drunk too much of the cool-aid, but I'm genuinely impressed with what Musk has, and is, pulling off.

    • (Score: 2) by kaszz on Tuesday August 01 2017, @11:20AM (6 children)

      by kaszz (4211) on Tuesday August 01 2017, @11:20AM (#547589) Journal

      I think a gigafactory or two will prove that statement wrong in due time.

      Every car manufacturer will have a electric car. But only Tesla will have batteries to go with it ? ;-)

      • (Score: 0) by Anonymous Coward on Tuesday August 01 2017, @01:43PM (1 child)

        by Anonymous Coward on Tuesday August 01 2017, @01:43PM (#547640)

        there are a dozen or so battery factories of same size as tesla's gigafactory in the works atm worldwide

      • (Score: 2) by Immerman on Tuesday August 01 2017, @01:50PM

        by Immerman (3985) on Tuesday August 01 2017, @01:50PM (#547643)

        Well, it does seem like his vision is to get the masses driving electric vehicles, and producing one of the critical components is probably a much more secure investment than trying to compete with the big automakers once they really get into the game.

      • (Score: 2) by ledow on Tuesday August 01 2017, @03:05PM (2 children)

        by ledow (5567) on Tuesday August 01 2017, @03:05PM (#547665) Homepage

        Again - do Tesla's batteries do anything that other's don't? Not really.

        They use the same chemistry, in the same cells, they're just produced en-masse. Are we suggesting that only Musk can do that, or that if the tech takes off that the Chinese - say - couldn't catch up and take over in a matter of weeks?

        At best he's a source of ignition for someone else's rocket. At worst, he's just throwing money away on tech we already have.

        • (Score: 2) by kaszz on Tuesday August 01 2017, @03:20PM

          by kaszz (4211) on Tuesday August 01 2017, @03:20PM (#547674) Journal

          For one he actually does something. And the point is likely the capacity and price of his batteries.
          Wouldn't surprise me either if he is already working on the next advancement.

        • (Score: 2) by cmdrklarg on Tuesday August 01 2017, @06:15PM

          by cmdrklarg (5048) Subscriber Badge on Tuesday August 01 2017, @06:15PM (#547719)

          At best he's a source of ignition for someone else's rocket.

          I think that is precisely what Musk's goal is: to light a fire under others.

          --
          The world is full of kings and queens who blind your eyes and steal your dreams.
    • (Score: 2) by ledow on Tuesday August 01 2017, @03:03PM

      by ledow (5567) on Tuesday August 01 2017, @03:03PM (#547664) Homepage

      I shall return to this post in one year.

      (P.S. SoylentNews - I have suggested as a feature before, to be able to do this. Tag a comment, which pops up again at a specified time, and you can reply and your comments get sent to the OP even if the article is locked!).

  • (Score: 0) by Anonymous Coward on Tuesday August 01 2017, @05:06PM (2 children)

    by Anonymous Coward on Tuesday August 01 2017, @05:06PM (#547707)

    For another take on Musk, see the Autoextremist this week,
        http://www.autoextremist.com/current/2017/8/1/the-greatest-pr-show-on-earth.html [autoextremist.com]

    Peter is from Detroit, was formerly a PR/advertising guy and he's really hard on GM for not supporting the Bolt with a great press launch. At the same time, he sees through Tesla as a cult of personality. He's convinced that if the Model 3 production numbers approach what has been projected, the build quality will suffer greatly...

    And he's a good writer, fun to read his bombastic columns.

    • (Score: 0) by Anonymous Coward on Tuesday August 01 2017, @08:33PM (1 child)

      by Anonymous Coward on Tuesday August 01 2017, @08:33PM (#547746)

      Ha, one of the letters to Autoextremist this week,

      Boy, I'm sure happy my new Model 3 that I didn't order wasn't delivered. I couldn't have evacuated the Outer Banks due to the power outage... probably can't buy a generator within range of the Muskmobile either.

      Brings up a good point, if there is a widespread power failure, anyone with an electric car is sol unless they managed to charge in advance (and then leave the area).

      • (Score: 0) by Anonymous Coward on Wednesday August 02 2017, @12:23AM

        by Anonymous Coward on Wednesday August 02 2017, @12:23AM (#547793)

        Can't a generator charge an electric car?

        Seems the real solution is an electric pickup truck, with room in the bed for a generator. A generator and a big tank of gasoline, or maybe diesel.

        Do they make diesel generators?

        Electric pickup truck, diesel generator, and a 500 gallon tank of diesel.

        Range problem: Solved. Power Outage problem: solved. You are welcome.