5 ms·

If they are at capacity, why don’t they charge more money?

rcMgD2BwE72F 8y ago
>They are almost losing by winning. They are at capacity in their Fremont factory but still not making a profit. Source? They are now at capacity and they are expected (by Tesla top management) to announce profitablity for this quarter. In other words, they were not a capacity last quarter and not profitable. That's why with the record sales and production of this summer, Q3 earnings publication will be very interesting. But we won't know the actual result until end of October. By then, the shorts (with billions in backing) will do all their best to give the company an extremely bad look. Because if Tesla manage to turn a profit this Q3, they'll lose dozens of billions. It's now or never for them.
- matwood 8y ago
  > By then, the shorts (with billions in backing) will do all their best to give the company an extremely bad look. Please stop with this thought process. TSLA is doing a fine job all on its own making themselves look bad. On the business side, Musk has missed how many production estimates? There are also concerns about quality. On the personal side, he's still harping on this pedophile thing /facepalm. Then what looks like a complete lie about being bought out. The way you fix the shorts problem is to actually deliver on your promises and make some money. Deflecting that it's the shorts causing problems for TSLA is typical TSLA deflecting the horrible job they have done at running TSLA.
  - rcMgD2BwE72F 8y ago
    I don't think you realize how much FUD is disseminated daily in the mainstream media. Take this Reuters article for instance, which has been published and translated by dozens of top newspapers: https://www.reuters.com/article/us-tesla-germany-daimler/electric-mercedes-opens-german-assault-on-tesla-idUSKCN1LJ17Y https://www.reuters.com/article/us-tesla-germany-daimler/ele... 3rd paragraph: "The market for upscale electric cars is Tesla’s to lose, with sales of its entry-level Model 3 sedan expected to reach about 50,000 cars this year and almost double that in 2019." All sources indicates that Tesla has already produced 50K Model 3. In the first three quarters. There's is still one quarter to go in 2018. And Tesla plan to produce more than 300K Model 3 next year, not 100K. What kind of error is that? Reuters is aware of this "mistake" and they are not correcting it. All media who published the report and were made aware of the wrong numbers kept it "as is", even though the 50K has already been proven wrong. How can Reuters and co keep such blatant errors while knowing it's bullshit? For some reasons, the disinformation only increases as Tesla pressures the legacy automakers margin (Tesla surpassed both BMW and Mercedes in US car sales this summer while the German are losing big time). Reuters & co might not be short themselves. But they knowingly play the short game and kep spreading the FUD ("See these terrible numbers? Who can expect Tesla to turn a profit? Now, let's hear what competitors and short sellers have to say...").
    - compcoffee 8y ago
      >What kind of error is that? They've aware of this, they are not correcting. All media who published the report and were made aware of the "mistake" kept it, even though the 50K is already proven wrong. Who cares? What influence do you think this article and that estimate has? "Disinformation"; that's laughable. Tesla and Musk are being sued and investigated for stock manipulation, but you're crying about Reuters being off on their prediction. Who is showing bias? Where is the outrage? >And just as Tesla surpasses BMW and Mercedes in car sales in the US, it's only getting worse. Sedan sales, while the whole industry moves to CUVs and SUVs. Do you think this is sustainable, or is it clearing a backlog? Why can you get a car in 2 weeks now?
      - deleted 8y ago
        [deleted]
      - apersona 8y ago
        > "Disinformation"; that's laughable. Tesla and Musk are being sued and investigated for stock manipulation, but you're crying about Reuters being off on their prediction. Who is showing bias? Where is the outrage? I never understand how this is a legit argument. Just because one party shows disinformation doesn't make another party's disinformation right.
        compcoffee 8y ago
        >Just because one party shows disinformation I don't think you know what disinformation is. You really believe one party is deliberately misleading, while the other is not?
    - matwood 8y ago
      > I don't think you realize how much FUD is disseminated daily in the mainstream media. FUD is what people do to Apple when they are making money hand over fist every quarter. TSLA is just a terribly run company that may end up out of business. Which is sad, because they have what appears to be a good product. Their production arrogance may not be able to be overcome though. This is also standard Musk to blame short-sellers for TSLAs financial and production woes. Please tell me how short-sellers impact TSLA's production floor? The short-seller problem fixes itself if TSLA ever delivers. >And Tesla plan to produce more than 300K Model 3 next year, not 100K. I'll be amazed if they hit that number. They had to pull out all of the stops to hit the last one.
- compcoffee 8y ago
  >They are now at capacity and they are expected (by Tesla top management) to announce profitablity for this quarter. Honest question: when did you start following this company? Elon has claimed profitability for years. Where is it? Where are the economies of scale that were promised? >By then, the shorts (with billions in backing) will do all their best to give the company an extremely bad look. The shorts will? Really? Which stories are false?
jonknee 8y ago
Who says they aren't? They're already charging $60k for their "mass market" $35k sedan. Update: I guess technically it's $50k, the other day I read the average selling price was $60k and that was stuck in my head. Regardless, far away from $35k!
- rstupek 8y ago
  Why wouldn't you build out the higher priced orders first?
  - jonknee 8y ago
    The more concerning part is that they're still losing a fortune while only building out the supposedly high margin top end models.
    - zaroth 8y ago
      Tesla gross margin on an AWD Model 3 with Autopilot is ~$20,000. Twenty thousand dollars. And they are outselling BMW’s entire passenger car lineup. It cost them a pretty penny to get here but cash is literally pouring in for Tesla right now.
      - jonknee 8y ago
        > It cost them a pretty penny to get here but cash is literally pouring in for Tesla right now. And also pouring out, they are losing a massive amount of money every quarter.
secabeen 8y ago
They did. I put in my order on August 1st, and they increased prices by about $1000 per car on August 3rd. I just got in before the increase.

>They are almost losing by winning. They are at capacity in their Fremont factory but still not making a profit. Source? They are now at capacity and they are expected (by Tesla top management) to announce profitablity for this quarter. In other words, they were not a capacity last quarter and not profitable. That's why with the record sales and production of this summer, Q3 earnings publication will be very interesting. But we won't know the actual result until end of October. By then, the shorts (with billions in backing) will do all their best to give the company an extremely bad look. Because if Tesla manage to turn a profit this Q3, they'll lose dozens of billions. It's now or never for them.

matwood 8y ago
> By then, the shorts (with billions in backing) will do all their best to give the company an extremely bad look. Please stop with this thought process. TSLA is doing a fine job all on its own making themselves look bad. On the business side, Musk has missed how many production estimates? There are also concerns about quality. On the personal side, he's still harping on this pedophile thing /facepalm. Then what looks like a complete lie about being bought out. The way you fix the shorts problem is to actually deliver on your promises and make some money. Deflecting that it's the shorts causing problems for TSLA is typical TSLA deflecting the horrible job they have done at running TSLA.
- rcMgD2BwE72F 8y ago
  I don't think you realize how much FUD is disseminated daily in the mainstream media. Take this Reuters article for instance, which has been published and translated by dozens of top newspapers: https://www.reuters.com/article/us-tesla-germany-daimler/electric-mercedes-opens-german-assault-on-tesla-idUSKCN1LJ17Y https://www.reuters.com/article/us-tesla-germany-daimler/ele... 3rd paragraph: "The market for upscale electric cars is Tesla’s to lose, with sales of its entry-level Model 3 sedan expected to reach about 50,000 cars this year and almost double that in 2019." All sources indicates that Tesla has already produced 50K Model 3. In the first three quarters. There's is still one quarter to go in 2018. And Tesla plan to produce more than 300K Model 3 next year, not 100K. What kind of error is that? Reuters is aware of this "mistake" and they are not correcting it. All media who published the report and were made aware of the wrong numbers kept it "as is", even though the 50K has already been proven wrong. How can Reuters and co keep such blatant errors while knowing it's bullshit? For some reasons, the disinformation only increases as Tesla pressures the legacy automakers margin (Tesla surpassed both BMW and Mercedes in US car sales this summer while the German are losing big time). Reuters & co might not be short themselves. But they knowingly play the short game and kep spreading the FUD ("See these terrible numbers? Who can expect Tesla to turn a profit? Now, let's hear what competitors and short sellers have to say...").
  - compcoffee 8y ago
    >What kind of error is that? They've aware of this, they are not correcting. All media who published the report and were made aware of the "mistake" kept it, even though the 50K is already proven wrong. Who cares? What influence do you think this article and that estimate has? "Disinformation"; that's laughable. Tesla and Musk are being sued and investigated for stock manipulation, but you're crying about Reuters being off on their prediction. Who is showing bias? Where is the outrage? >And just as Tesla surpasses BMW and Mercedes in car sales in the US, it's only getting worse. Sedan sales, while the whole industry moves to CUVs and SUVs. Do you think this is sustainable, or is it clearing a backlog? Why can you get a car in 2 weeks now?
    - deleted 8y ago
      [deleted]
    - apersona 8y ago
      > "Disinformation"; that's laughable. Tesla and Musk are being sued and investigated for stock manipulation, but you're crying about Reuters being off on their prediction. Who is showing bias? Where is the outrage? I never understand how this is a legit argument. Just because one party shows disinformation doesn't make another party's disinformation right.
      - compcoffee 8y ago
        >Just because one party shows disinformation I don't think you know what disinformation is. You really believe one party is deliberately misleading, while the other is not?
  - matwood 8y ago
    > I don't think you realize how much FUD is disseminated daily in the mainstream media. FUD is what people do to Apple when they are making money hand over fist every quarter. TSLA is just a terribly run company that may end up out of business. Which is sad, because they have what appears to be a good product. Their production arrogance may not be able to be overcome though. This is also standard Musk to blame short-sellers for TSLAs financial and production woes. Please tell me how short-sellers impact TSLA's production floor? The short-seller problem fixes itself if TSLA ever delivers. >And Tesla plan to produce more than 300K Model 3 next year, not 100K. I'll be amazed if they hit that number. They had to pull out all of the stops to hit the last one.
compcoffee 8y ago
>They are now at capacity and they are expected (by Tesla top management) to announce profitablity for this quarter. Honest question: when did you start following this company? Elon has claimed profitability for years. Where is it? Where are the economies of scale that were promised? >By then, the shorts (with billions in backing) will do all their best to give the company an extremely bad look. The shorts will? Really? Which stories are false?

jonknee 8y ago

Who says they aren't? They're already charging $60k for their "mass market" $35k sedan. Update: I guess technically it's $50k, the other day I read the average selling price was $60k and that was stuck in my head. Regardless, far away from $35k!

rstupek 8y ago
Why wouldn't you build out the higher priced orders first?
- jonknee 8y ago
  The more concerning part is that they're still losing a fortune while only building out the supposedly high margin top end models.
  - zaroth 8y ago
    Tesla gross margin on an AWD Model 3 with Autopilot is ~$20,000. Twenty thousand dollars. And they are outselling BMW’s entire passenger car lineup. It cost them a pretty penny to get here but cash is literally pouring in for Tesla right now.
    - jonknee 8y ago
      > It cost them a pretty penny to get here but cash is literally pouring in for Tesla right now. And also pouring out, they are losing a massive amount of money every quarter.

secabeen 8y ago

They did. I put in my order on August 1st, and they increased prices by about $1000 per car on August 3rd. I just got in before the increase.