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2017 Investor Roundtable:General Discussion

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In the past two years institutions have been holding back on purchasing TSLA due to uncertainties of meeting deadlines. I don't think this will be the case for 2017 as the GF comes online and M3 prototypes commences production, institutions will add to their positions. The hint they are giving us their overweight rating. I have a feeling they will continually increase their PT as valuations will be playing catch up to M3 and TE.
Agree. A slight clarification, making the points stronger. The Model 3's to be produced starting after this month are pre-production models, not prototypes. They will be testing the production line as well as final vehicle tweaking.
 
Agree. A slight clarification, making the points stronger. The Model 3's to be produced starting after this month are pre-production models, not prototypes. They will be testing the production line as well as final vehicle tweaking.

Do you have some source to prove that?

We've not seen any evidence of Beta Model 3's - save a few unconfirmed anecdotes about white Model 3's spotted on car carrier trucks in Nebraska and possibly around and about Chicago.

Usually, the process goes 2-3 Alpha cars (that's the red structural test article + functional silver and matte black prototypes we saw at the unveil)
Then 20-200 Beta cars for all-up testing of various components. These are hand-built test cars, as the line isn't yet ready for them. Do these exist? Maybe, but Tesla's kept a tight lid on it if they do.
Then 200-2000 Production intent cars actually built on the real production line to test line functionality and build quality.
Then serial production start.
 
Why not? Schiphol Taxi bought 200 Teslas at list price in a fleet sale deal because having electric cars won them the tender for exclusive airport taxi service. Not saying that's the case for Dubai, but it is possible there is more to this than simply what would make the most financial sense for this single buy.

Any link to back up your claim of full price? It's a possibility for sure. It wasn't 200 though. I can find 167. You are also forgetting, that gas is way more expensive in Europe (and was even more back in 2014) than in Dubai at current time. The savings don't work that way any more.

From the tone of the article on Dubai sale,it seems Dubai agreed to buy what Tesla proposed. If you can find a similar rule for Dubai airport, that they exclusively need electric cars, then your point about full price sales can be stronger. Anyway, it is just my guess.
Dubai transport authority agrees to buy 200 Tesla vehicles
 
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As for Dubai: dubai future foundation News - Futurism
Check out the site.
The UAE has one of the world's highest percentages of luxury vehicle sales, roughly 13% of the total, about 4200 sales in 2016, a down year.
Dubai in particular, the UAE in general is very supportive of sustainable transport, and so is the rest of the GCC الأمانة العامة لمجلس التعاون لدول الخليج العربية
The Tesla plan as Elon stated it implies it is to have charging throughout the GCC, and sales too. The Destination Chargers already in place in the most-traveled parts of Dubai and Abu Dhabi are strong indicators that the progress may be more rapid than we might imagine. If so it is hardly a stretch to imagine annual sales of ~1,000 Tesla by 2018 from the UAE alone. It is also not a stretch to imagine expanding to Riyadh-Bahrain, Kuwait, Qatar and Oman in a single frenetic year, which could easily absorb another ~5,000 vehicles per annum.

Lest you think I am thinking without context. I lived in the UAE and Bahrain during the early 1970's. Nobody thought any of the dreams could happen. Many of them have done so. Given the desire to have more sustainability throughout the GCC Tesla should be there and in a big way.

FWIW, I was a banker back then. I financed several brands entry into UAE, Kuwait, Bahrain and Saudi Arabia. I have kept up to date during subsequent decades. They still have many of the problems they had then, there are serious political risks. True. They also have a determination to conquer their issues and beat the odds. The entire Gulf has been doing that for decades.

Excellent move by Elon. He's certainly given perspective about the Hyperloop plans between Dubai and Fujairah too. (see the Dubai Future Foundation)
 
Do you have some source to prove that?

We've not seen any evidence of Beta Model 3's - save a few unconfirmed anecdotes about white Model 3's spotted on car carrier trucks in Nebraska and possibly around and about Chicago.

Usually, the process goes 2-3 Alpha cars (that's the red structural test article + functional silver and matte black prototypes we saw at the unveil)
Then 20-200 Beta cars for all-up testing of various components. These are hand-built test cars, as the line isn't yet ready for them. Do these exist? Maybe, but Tesla's kept a tight lid on it if they do.
Then 200-2000 Production intent cars actually built on the real production line to test line functionality and build quality.
Then serial production start.
Report: Tesla Model 3 pre-production to start February 20
The terms Tesla uses are not precisely the same as are those of other manufacturers. Tesla has strongly implied (maybe even confidentially stated) that the Model 3's that begin assembly in a few weeks will be using production tooling, production line and production paint shop. if that is true they will be pre-production vehicles. I have no idea whether they would use the term 'beta' for those since that implies functional development rather than production line testing, and the latter has been discussed.

Unquestionably the feature/function will include beta features up to and including customer delivery, just as it does today with Model S and X.
 
No, I don't. But it is logical to expect this. Who will buy 200 cars at once at full prices, without first trying out a few? Los Angeles police didn't buy Teslas; you think Dubai transport will do that?
Besides, they are really doing a favor by doing some free advertisement for Tesla. If we can get over the nonsense of "production constrained" for Model S, it makes perfect sense.

I will be curious if Tesla will be forthcoming with any financial numbers for this deal. I have my doubts. Anyone wants to ask Tesla sales?

(@AudubonB , don't want to create another post to reply. Please see the new headline about who "likely' proposed the transaction.)
From the tone of the news, it seems Tesla proposed the sale, as Dubai transport "agrees" to buy.
Dubai transport authority agrees to buy 200 Tesla vehicles

Yeah, we would all love to see that agreement, but most likely never will. My own inclination to speculate would see this as a small goodwill gesture, only about $20M, leading to much bigger ventures with the UAE. My own fantasy is that the UAE will buy a Gigafactory.

A Gigafactory in the UAE would make good use of all that solar power they're building up. They'll need need alternative exports soon. Why not battery packs?

I have no sources for this, just my imagination.
 
Report: Tesla Model 3 pre-production to start February 20
The terms Tesla uses are not precisely the same as are those of other manufacturers. Tesla has strongly implied (maybe even confidentially stated) that the Model 3's that begin assembly in a few weeks will be using production tooling, production line and production paint shop. if that is true they will be pre-production vehicles. I have no idea whether they would use the term 'beta' for those since that implies functional development rather than production line testing, and the latter has been discussed.

Unquestionably the feature/function will include beta features up to and including customer delivery, just as it does today with Model S and X.

February 20th.............hmmmmm...........what if.....Elon unveils the first Model 3 off the production line on the earnings call....? It is sure fun to think about that being the reason for delaying the earnings statement a few weeks!
 
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Not sure if Musk is trying to temper expectations, but he didn't sound as confident about the Model 3 "hopefully getting into production later this year" as I would have liked.

Hear his remarks starting at the 1:05 mark:


Or am I just over-analyzing?
Over analyzing.
 
Just like in 2013, the rise is a slow incremental daily increase coupled with unforeseeable onslaught of good news: Elon having Trump's ear, M3 tooling, Dubai, GF, Tesla energy, etc. The onslaught is demoralizing "older shorts" who are forced to cover, while baiting "newer shorts" to pile in, causing upward momentum without any end in sight. Shorts need a black swan event like the f*re in 2014 to stop this kind of momentum.

While a violent squeeze of $20 plus dollars may send signals of a quick reverse, these daily slow "few dollar gains" are exasperating shorts as longs sense it could go higher. If the upward movement was more Violent in nature, then longs would be more inclined to sell. But if these small increases continue daily, shorts are in trouble.

If Elon really wanted to send a tsunami, a tweet about M3 reveal part 3 could do the job. Anyone know when part 3 is predicted to occur?
 
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