4 ms·

Looks like everyone is worried about a few percentage points up and down in financial numbers. There are three keys points I took away: 1) We expect the capita

Looks like everyone is worried about a few percentage points up and down in financial numbers. There are three keys points I took away: 1) We expect the capital spend per unit of capacity for this factory to be less than half of that of our Model 3 line in Fremont. 2) Since Model Y will be built on the Model 3 platform and is designed to share about 75% of its components with Model 3, the cost of the Model Y production line should be substantially lower than the Model 3 line in Fremont, and the production ramp should also be faster. 3) This year, we will continue to implement more automation projects, and our ongoing cost reduction efforts will also make an impact. In the end if Tesla wants to achieve its mission of moving to world to sustainable energy, costs need to go down. Every quarter they are making improvements and the three points above show significantly potential to further improve costs. The global auto market at $2 trillion is gigantic and good fraction of it is going to be electric - it is really a race to improve costs and Tesla is significantly ahead of the pack so far.

rjplatte 8y ago
This is the best breakdown I've seen yet. I doubt we'll see the "Production Hell" experienced with the Model 3 again.
ucaetano 8y ago
Given how wrong forward-looking statements by Tesla are, any forward-looking statement is largely irrelevant at this point. So the only thing that actually matters is results: how they performed last quarter.
threeseed 8y ago
> Tesla is significantly ahead of the pack so far Not really. Audi e-tron, Jaguar iPace and BMW i3 are all well reviewed. And 2019/2020 will see a wave of car companies e.g. Hyundai, Mercedes entering the market including plenty of interesting startups coming out of China. So Tesla is going to need far more to differentiate themselves than just range.
- drudru11 8y ago
  Anecdotal, but a friend of a friend bought the jag. He is having a very poor experience with the car.
  - ikjadoon 8y ago
    Alas. Tesla, like all companies, could use compelling competiton. Is it the range? I think they went too low. Or just general Jaguar unreliability?
  - Diederich 8y ago
    Can you say what problems there are?
  - toomuchtodo 8y ago
    Was this the story of the jag where it only had tens of miles on the vehicle, the rear motor seized, and the manufacturer and the dealer are fighting over the buyback of the vehicle? https://www.i-paceforum.com/forum/193-2018-jaguar-i-pace-ev-400-general-discussion/2225-traction-battery-fault-wheels-locked-up-5.html#/topics/2225?page=5 https://www.i-paceforum.com/forum/193-2018-jaguar-i-pace-ev-...
- fvdessen 8y ago
  Audi e-tron and Jaguar iPace compete with the Model S; BMW i3's small range puts it in another category entirely. There's no competition for the Model 3 yet, and I don't think there will be for a while.
  - janoc 8y ago
    Well, given that the Model 3 is going to cost around 60k EUR in Europe according to recently announced prices, they aren't going to sell many of them. That's a price you can have a huge (gasoline) SUV for. Or a luxury Mercedes. Or two smaller BMWs ... People aren't going to buy the Model 3 (which is supposed to be a "budget" car) only for Musk's puppy eyes at such price. The other reason is a horrible lack of charging infrastructure. Europe isn't US where everyone has a house, garage and a driveway so plugging a car in to charge overnight isn't a problem. Here a huge amount of people live in apartments and the shared parkings simply don't have charging spaces. And a token one/two slow charging poles at some larger supermarkets are really not a solution. Even Tesla has a very poor coverage with their superchargers here. That's why the electric cars aren't exactly selling like hot cakes here. That Model 3 doesn't have an equivalent electric competitor is very much irrelevant when everyone is going to compare it with a gasoline (or diesel) powered car - which cost half the price and have higher utility value.

rjplatte 8y ago

This is the best breakdown I've seen yet. I doubt we'll see the "Production Hell" experienced with the Model 3 again.

ucaetano 8y ago

Given how wrong forward-looking statements by Tesla are, any forward-looking statement is largely irrelevant at this point. So the only thing that actually matters is results: how they performed last quarter.

threeseed 8y ago

> Tesla is significantly ahead of the pack so far Not really. Audi e-tron, Jaguar iPace and BMW i3 are all well reviewed. And 2019/2020 will see a wave of car companies e.g. Hyundai, Mercedes entering the market including plenty of interesting startups coming out of China. So Tesla is going to need far more to differentiate themselves than just range.

drudru11 8y ago
Anecdotal, but a friend of a friend bought the jag. He is having a very poor experience with the car.
- ikjadoon 8y ago
  Alas. Tesla, like all companies, could use compelling competiton. Is it the range? I think they went too low. Or just general Jaguar unreliability?
- Diederich 8y ago
  Can you say what problems there are?
- toomuchtodo 8y ago
  Was this the story of the jag where it only had tens of miles on the vehicle, the rear motor seized, and the manufacturer and the dealer are fighting over the buyback of the vehicle? https://www.i-paceforum.com/forum/193-2018-jaguar-i-pace-ev-400-general-discussion/2225-traction-battery-fault-wheels-locked-up-5.html#/topics/2225?page=5 https://www.i-paceforum.com/forum/193-2018-jaguar-i-pace-ev-...
fvdessen 8y ago
Audi e-tron and Jaguar iPace compete with the Model S; BMW i3's small range puts it in another category entirely. There's no competition for the Model 3 yet, and I don't think there will be for a while.
- janoc 8y ago
  Well, given that the Model 3 is going to cost around 60k EUR in Europe according to recently announced prices, they aren't going to sell many of them. That's a price you can have a huge (gasoline) SUV for. Or a luxury Mercedes. Or two smaller BMWs ... People aren't going to buy the Model 3 (which is supposed to be a "budget" car) only for Musk's puppy eyes at such price. The other reason is a horrible lack of charging infrastructure. Europe isn't US where everyone has a house, garage and a driveway so plugging a car in to charge overnight isn't a problem. Here a huge amount of people live in apartments and the shared parkings simply don't have charging spaces. And a token one/two slow charging poles at some larger supermarkets are really not a solution. Even Tesla has a very poor coverage with their superchargers here. That's why the electric cars aren't exactly selling like hot cakes here. That Model 3 doesn't have an equivalent electric competitor is very much irrelevant when everyone is going to compare it with a gasoline (or diesel) powered car - which cost half the price and have higher utility value.