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2017 Investor Roundtable:General Discussion

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The question is do you think they know more about their profession than you do?

The question is, do you think anyone inside Tesla except Elon is free to express their opinion without fear of job loss?
You only need to read the story about the female engineer who raised issue about the headliner alignment, and was demoted and eventually left/fired to answer that question. It was a Bloomberg article; posted here by @Cosmacelf.

PS: If your answer is "yes" by any chance, it means you never worked in any of the Silicon valley companies.
 
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The question is, do you think anyone inside Tesla

It is pointless to speculate what might or might not be going on inside Tesla and how it will affect the shipping product. The chances of any retail investor on either side knowing are for all practical purposes 0%.

Nothing anyone says here will have the slightest effect on anything. Unless there are Tesla employees among us who have some power to take or not take actions that alter the course of events.

Place your bets and pray :D
 
The question is, do you think anyone inside Tesla except Elon is free to express their opinion without fear of job loss?
You only need to read the story about the female engineer who raised issue about the headliner alignment, and was demoted and eventually left/fired to answer that question. It was a Bloomberg article; posted here by @Cosmacelf.

PS: If your answer is "yes" by any chance, it means you never worked in any of the Silicon valley companies.

According to Tesla, she was promoted once after raising the issue.
 
Yes, yes. Tesla engineers are the smartest while they work at Tesla. But they are the dumbest before they join Tesla, and after they leave and work for others. /s :)

While at Tesla they are led by Elon Musk.

When not at Tesla they are led by non-founding CEOs who have a different set of incentives and disincentives. ;)

Generally this results in non-optimized work. :cool:
 
To be fair, The F 35 program tried a very similar approach by building the production equipment while flight testing. It was a disaster, even with some of the most advanced computer prototyping on the planet.

Don't compare the bloated, corrupt design and spending practices of the military-industrial complex (especially the Air Force and its usual array of contractors) with the lean and mean approach of Tesla for the Model 3.

I suggest reading the biography of John Boyd by Robert Coram if you want insight into the appalling design and cost overrun issues related to America's combat aircraft. It is a huge problem that goes back decades and is virtually intractable. The F-35 is just the latest predictable disaster. Another great book on this issue is "National Defense" by James Fallows.
 
The way I see it, as long as they're building cars now to test, what's the harm if the cars are not built by hand, but rather by an almost complete production line? They will still catch the same problems, if not more, considering people generally think production line is more prone to quality variability than hand build.

Maybe Tesla instead of saying they're skipping beta, they should have said

"yes we're building beta now as planned. In addition, our production line is almost complete, so we thought might as well just build the beta using the production line. If we find anything that needs to be tweaked, our production line can be quickly changed. [add some color on how automated and flexible the new design of the production line is] By July, we'll be ready to build early production version on a production line that is already proved out and ready to go."
The beauty of this approach is that it tests multiple things in parallel that can be tuned in parallel. Instead of having to serially tune the tooling, qualify production parts, and validate the beta/RC cars, they are doing most of it at once. If you have advanced enough design/simulation tools, then you might be able to do 90% of it in parallel because the dependencies are "close" enough. Once you have the final article approved, you are already in "minor tweak" territory for the other pieces.

I'm in IT, and when we go to pilot with a system, we include as much/many near-production infrastructure and systems as we can: We roll out the package or system using our production systems management infrastructure with production-candidate documentation, hold production-candidate training, and test RC help desk procedures.

We do as much as we can in as close to final version as we can for pilot. The advantages are numerous, with time savings in iterations chief amongst them.
 
"yes we're building beta now as planned. In addition, our production line is almost complete, so we thought might as well just build the beta using the production line. If we find anything that needs to be tweaked, our production line can be quickly changed. [add some color on how automated and flexible the new design of the production line is] By July, we'll be ready to build early production version on a production line that is already proved out and ready to go."
Yes this is my impression of the "skipping beta" right now as well. And I'm cool with that as long as beta testing (real life testing and validating the car) is not skipped.
 
That is an understatement.

All the major OEMs have shut down automotive manufacturing in Australia. There are just niche/boutique automotive manufacturing left in Australia.
If Tesla knows what they're doing this could be an incredible opportunity to buy up more factories with fully deveoloped logistics for pennies on the dollar (like the Fremont purchase)... assuming that tarriffs from Australia to Southeast Asia are reasonable. But if it turns out to be more advantageous to put a factory in India and one in China, they probably won't put one in Australia.

Unless they can slap one directly on top of a mine...
 
My guess is that they raise capital again by the end of the year, maybe after Q4 earnings, which would be the first one where the impact of 25% margins on Model 3 can be seen. I expect them to raise a large amount (several billions) to fund Gigafactory 3 and 4.
For reference, Q4 2017 earnings will not be reported until 2018. I agree that it will be the first quarter where significantly visible profits from Model 3 can be shown (deliveries may start in Q3 but they'll be at a low rate and the margins will look terrible for that quarter). Accordingly, I suspect that we will not see good pricing for a future capital raise until the beginning of 2018, *after* Q4 2017 earnings are reported, or at least after Q4 2017 deliveries are reported.
 
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If Tesla knows what they're doing this could be an incredible opportunity to buy up more factories with fully deveoloped logistics for pennies on the dollar (like the Fremont purchase)... assuming that tarriffs from Australia to Southeast Asia are reasonable. But if it turns out to be more advantageous to put a factory in India and one in China, they probably won't put one in Australia.

Unless they can slap one directly on top of a mine...

Australia has Free Trade deals with the United States, New Zealand,Japan, South Korea, and Thailand. Maybe a few other countries with small automotive markets. India has a 100% duty on imported luxury cars which would include Model 3 and China 26%.

So Tesla can already export cars into Australia duty free. Luxury cars pay a 10% luxury tax above $75k AUD.

Australia used to have a 10% duty on car imports and subsidized car production 25% for the cost of manufacturing cars. Still Toyota,Ford and GM could not make it work. When they closed a few years ago Ford/GM said Australian labor was 40% more expensive than US. As factory after factory closed Australia's Australian Manufacturing Workers Union refused any wage concessions.

Maybe Tesla can have an Alien Dreadnought 2.0 in Australia?
 
Yes.

Trans-Pacific Partnership Agreement (TPP) negotiations were undertaken by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, the United States and Vietnam.

Unsurprisingly, given the actions of one of those nations, Australia has held off on ratifying it, although the government's position is to press onward with free trade activities within that set of countries.
 
It is pointless to speculate what might or might not be going on inside Tesla and how it will affect the shipping product. The chances of any retail investor on either side knowing are for all practical purposes 0%.

Nothing anyone says here will have the slightest effect on anything. Unless there are Tesla employees among us who have some power to take or not take actions that alter the course of events.

Place your bets and pray :D
A Fair Future At Tesla | Facebook
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hearing initial terms of the convertible are 1 7/8- 2 3/8% coupon and the conversion price likely to be 310-330. these are a bit worse than i had hoped but are only the very initial indications.
OK, yeah, that's a slightly lower conversion price than I was expecting, and a *very* slightly higher interest rate. Coupon may be higher than effective yield if there's high subscription though.
 
When the day comes that they do choose to ramp up EV production, what are they going to do for massive battery supplies? That's what I'd like to know. I mean is anyone else gearing up for mass production of batteries the way Tesla is?
Yeah, several Chinese companies.

In particular, CATL.

A Chinese battery maker is muscling into the EV scene

Watch China for the real competition. The Western automakers are a sideshow and a distraction from an investing point of view.
 
Thanks for the "inside" info, that the engineers who worked on botched Model X are no longer with the company.
Yes, yes. Tesla engineers are the smartest while they work at Tesla. But they are the dumbest before they join Tesla, and after they leave and work for others. /s :)
Very astute of you to base your evaluation of Tesla engineering on their one big f*up with the Model X and ignore their successes with Model S, battery system, supercharging etc.
 
How can you skip beta, if beta's purpose is to validate the whole design?
There was nothing wrong with the revealed prototype; it was fine. If there had been problems with it, they would have had to do some beta rounds. But it was fine, so they don't have to.

The interior, which wasn't final at the reveal, has not gotten enough design testing, but everything else has.
 
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