sundaymorning
Active Member
Grohmann line, 3 shifts, cost cutting levers.. Things are starting to fit together like a puzzle. AH is killing it $294, it’s about time Elon steps in to defend his company. I wish he would do it more often.
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Grohmann line, 3 shifts, cost cutting levers.. Things are starting to fit together like a puzzle. AH is killing it $294, it’s about time Elon steps in to defend his company. I wish he would do it more often.
Reread to find this:
Our car needs to be designed and built with such accuracy and precision that, if an owner measures dimensions, panel gaps and flushness, and their measurements don’t match the Model 3 specs, it just means that their measuring tape is wrong.
Our car needs to be designed and built with such accuracy and precision that, if an owner measures dimensions, panel gaps and flushness, and their measurements don’t match the Model 3 specs, it just means that their measuring tape is wrong.
Thumper
Active Member
Anagram of Lora Kolodny : Karol D. Loony
(expanded version of a comment I posted on the other main thread)
I really recommend reading Elon's letter a couple of times.
Tesla Model 3 production aims for 6,000 units per week in June after upgrade in May – ~5,000 with margin of error, says Elon Musk
One way or the other, to my view, this isn't just another Tesla letter or blog that maybe moves the stock a little today and tomorrow or not. Instead, this letter has the looks of going down as a landmark moment for Tesla, and not just the reiteration of 5K by June target.
This letter also,
-in response to criticism of missed goals Elon has said he is responsible for and needs to do better with, outlined a new Tesla approach to stating and achieving goals (in this case with production rates, establishing burst rate goals at a level higher than sustainable rate to improve the likelihood of hitting the sustainable rate goal)
-addresses profitability, acknowledging some validity in past criticisms, and clearly stating that with the move to mass market, profitability is a basic standard he has for the company, and announcing a very strong move to his direct involvement in implementing far tighter controls on spending
-in response to supply chain structure and performance (issues with which Tesla never passed the buck on as far as the ramp challenges, but, clearly we can infer were a materially contributor), outlines a move towards trying to rationalize the supply chain and remove layers of subcontractors not adding value, and raises the bar firmly for continuing to be a Tesla supplier
-says to all the anecdotal swipes at Tesla re build quality (and the broader doubt about Tesla and its products solidity they are designed to evoke), we are determined to reach a previously unimagined new standard in design and production precision (outpacing the industry by an order of magnitude).
- implicitly addressed a number of false narratives recently in the media (sustainability of the 2K rate they reached, Model 3 quality,...)
- several comments on Tesla's internal processes with the underlying theme of organizational structures and communication (meetings, acronyms...) being there to serve as tools for doing what makes sense, rather than serving as obstacles for the same.
- letter was so rich, I'm confident I missed some other significant points here.
Some risk that this letter becomes notorious in Tesla's history, but, I'm pretty confident it will turn out to be a long remembered signature moment in the company's emergence as a leader in the mass marketplace.
I really recommend reading Elon's letter a couple of times.
Tesla Model 3 production aims for 6,000 units per week in June after upgrade in May – ~5,000 with margin of error, says Elon Musk
One way or the other, to my view, this isn't just another Tesla letter or blog that maybe moves the stock a little today and tomorrow or not. Instead, this letter has the looks of going down as a landmark moment for Tesla, and not just the reiteration of 5K by June target.
This letter also,
-in response to criticism of missed goals Elon has said he is responsible for and needs to do better with, outlined a new Tesla approach to stating and achieving goals (in this case with production rates, establishing burst rate goals at a level higher than sustainable rate to improve the likelihood of hitting the sustainable rate goal)
-addresses profitability, acknowledging some validity in past criticisms, and clearly stating that with the move to mass market, profitability is a basic standard he has for the company, and announcing a very strong move to his direct involvement in implementing far tighter controls on spending
-in response to supply chain structure and performance (issues with which Tesla never passed the buck on as far as the ramp challenges, but, clearly we can infer were a materially contributor), outlines a move towards trying to rationalize the supply chain and remove layers of subcontractors not adding value, and raises the bar firmly for continuing to be a Tesla supplier
-says to all the anecdotal swipes at Tesla re build quality (and the broader doubt about Tesla and its products solidity they are designed to evoke), we are determined to reach a previously unimagined new standard in design and production precision (outpacing the industry by an order of magnitude).
- implicitly addressed a number of false narratives recently in the media (sustainability of the 2K rate they reached, Model 3 quality,...)
- several comments on Tesla's internal processes with the underlying theme of organizational structures and communication (meetings, acronyms...) being there to serve as tools for doing what makes sense, rather than serving as obstacles for the same.
- letter was so rich, I'm confident I missed some other significant points here.
Some risk that this letter becomes notorious in Tesla's history, but, I'm pretty confident it will turn out to be a long remembered signature moment in the company's emergence as a leader in the mass marketplace.
Jonathan Hewitt
Active Member
That sounds to me like the next parody account name!
So, We are going from Jerome's 'reckless growth' to EM's new 'relentless growth'...........Excellent!
dc_h
Active Member
Opening China is not relevant to Chanos and his ilk, since Tesla won’t be able to raise money, and will continue to burn cash. The chips are now all on the table and Elon has all the cards. Short term news and any bluffing and bluster by the shorts is not going to get Elon to fold.
I bought in the last of my long term liquid investments into TSLA on Monday. If I dumped conservative long term funds I could double down, but am not that aggressive. I’m excited now though, I think the stock ramp will follow the production ramp, but it may be delayed a few more weeks, or even until Q3 production numbers or A3 earnings. I think some shorts will start to pull out now and will look for more negative media reports to cover their retreat.
Stay long people. Buy when the blood is in the streets, or at least before the streets are cleaned up.
dc_h
Active Member
WOW! Is it raining in shortsville? That is must see tv. Wonder if CNBC will play that tomorrow morning?
sundaymorning
Active Member
Shorts were going to use the shutdown as an excuse to stomp all over the TSLA. Now the table has turned, Elon has given his official statement showing them his cards. The 2k rate was for three whole weeks. Now they are aggressively pursuing 5k with additional workers. This ramp is on and the dominos will fall as time goes on. The longer the shorts hold onto their positions, the more they’ll have to lose.
RobStark
Well-Known Member
I think it is reasonable to question Elon's predictions 6 months - 5 years out.
When he is making predictions 2 weeks - 2 months out I think he has a good grasp on what is likely and that he will have egg on his face if he misses materially.
Let's go for reckless growth without regard to profit seems to have been thrown under the bus. Maybe Wall Street has let Elon know they will no longer fund losses on favorable terms? But they will fund GF 3,4,5 when Tesla as a whole is profitable?
When he is making predictions 2 weeks - 2 months out I think he has a good grasp on what is likely and that he will have egg on his face if he misses materially.
Let's go for reckless growth without regard to profit seems to have been thrown under the bus. Maybe Wall Street has let Elon know they will no longer fund losses on favorable terms? But they will fund GF 3,4,5 when Tesla as a whole is profitable?
It just strikes me how pro-Tesla the new Chinese policy (declaration) is, and how fast it seems to have been developed. It directly addresses EM's points pronounced not so long ago. Looks like a direct result of EM's efforts (even if with some help of his friends at Trump's advisory board or some other backstage activity)? If it is, then, I think, this is not properly priced in SP yet.
Ulmo
Active Member
I'm not sure how bulls can spin that email leak as a positive development:
- It declares an intent for 24/7 production, which will hurt gross margins. Tesla already has more employees-per-car-produced than any major automaker.
- It's vague when Model 3 production is actually going to achieve a sustained 5k/week. One point in the email says this will be "a few months" after June.
- It shows the impacts of the cash crunch: finance going through all expenditures, Elon Musk personally cracking down on all 1M+ expenses.
- It's pretty harsh towards supplies and leaves open questions about Tesla's reliance on them. What happens if a supplier doesn't pull through? What happens if a supplier backs out?
- It validates bears that have been mocking Tesla's "burst production" yardstick.
He posted a bunch more after that one. Any translations? ("Paint it Black" one is probably obvious, IMO.)
sundaymorning
Active Member
Beats me... the list looks pretty diverse/random now. I thought the first song he posted had a pretty clear hidden message: after going through a tough period where he felt like the “walls were closing in” on him, his confidence is now up and he was about to “throw the world” at them shorts since M3 is going to ramp/ramping. Then the email leaked after market reiterating 5k, possible 6k... GOD I love this guy.
One of his listed song “Sail” is a good one. The Lil Wayne he posted earlier today before market closed is now on my favorite playlist. Although I don’t like bad language, I’m going to turn that one up on the way to work tomorrow. Im also going to save it for days when I feel down. Thanks Elon for lifting our spirits with your email.
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RobStark
Well-Known Member
dc_h
Active Member
I don’t think song number one had a hidden message. Definitely a big two fisted bird in the face to the doubters, haters and shorts.
sundaymorning
Active Member
Well, maybe not. But it definitely felt like the “walls were closing in” [on TSLA] during the last dip. Did you listen to the entire song? It felt like his life the past 6-9 months/ production hell.
I welcome those birdies I’m sure he has more up his sleeves. We can all breath a lot easier the next few days knowing Tesla is working out those bottlenecks.
Nothing is priced in bc shorts have been piling on without catalysts to deter them. I have a feeling a huge move is coming. Shorts may resort to illegal means soon to defend themselves. I can’t believe ppl get talked into betting against the future of earth and humanity. How ridiculous is that...
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