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Probably more like a natural time to leave - Model 3 is past the initial hell and shipping more regularly, etc. And in this process have learned how to take a v
by karthikb 7y ago
Probably more like a natural time to leave - Model 3 is past the initial hell and shipping more regularly, etc. And in this process have learned how to take a vehicle from end to end. So instead of working on a brand new car inside of Tesla, why not do the same thing on their own with a greater ownership stake?
Not always the best decision, but usually the kind of thought process one goes though.
- semi-extrinsic 7y agoCould also be that despite being past Model 3 production hell, they are still not profitable ($700M loss in Q1 '19), and they are betting the farm on autonomous somehow turning that into a profit? Color me skeptical, but if I was an engineer at Tesla I'd be looking for an exit as well.
- jsight 7y agoOTOH, FCF has turned positive for at least the trailing 12 months, and they are guiding for it to remain positive for the remainder of the year. For sure, there are many struggles that continue for Tesla, but I'm not sure that a new startup building cars from scratch is a way out of that. It looks like jumping out of the pot and into an inferno to me. But the sorts of people doing this seem to be the ones that might enjoy the challenge involved.