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> Tesla need to take money from new clients to make their existing clients whole. How did you come to that conclusion? Are there customers who aren't whole?
by cptskippy 8y ago
> Tesla need to take money from new clients to make their existing clients whole.
How did you come to that conclusion? Are there customers who aren't whole? Are there customers who have ordered a Model 3 that wasn't delivered as promised?
Look at it this way...
Tesla is operating at a loss and is reliant on investors to keep it afloat until it becomes profitable. The only way to do that is to demonstrate to investors that you will eventually become profitable by meeting your own schedules, timelines, and sales targets.
Tesla can hit it's 5000 cars a week mark by the end of June but if there aren't customers to deliver those vehicles to then they're not hitting their sales numbers and still fail.
Tesla has said that they're not producing the low end Model 3 and instead focusing on the high margin trim levels. What percentage of reservations are holding out for the low end Model 3? We know there's ~450000 reservations, what percentage are in the US/Canada? Lets pretend it's 50% or 225000. How many of those reservations are holding out for the cheapest model? Lets pretend that to is 50% or 112500. That leaves 112500 reservations who will buy a high trim level Tesla 3.
If Tesla has hit it's 5000 vehicles a week mark and is promising fulfillment in 2-4 months then by the 4 month mark they'll have produced 80000 Model 3s. That's pretty close to the hypothetical 112500 number.
- smcl 8y agoI’m just putting the pieces together and summarising what was said. The implication from the person I replied to was that they’re due to deliver people cars and they need money to produce these (or survive long enough to produce them). Seems less than rosy tbh