Their revenue is exploding. Profitability supposedly will come but this capex has a point and it's going to generate more revenue. Anyways, no longer on topic. Sorry.
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Jon McNeill to depart Tesla
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Their revenue is exploding. Profitability supposedly will come but this capex has a point and it's going to generate more revenue. Anyways, no longer on topic. Sorry.
My impression is that the majority of money being "burned" through is being spent on infrastructure which to me isn't throwing money away as I think the phrase "burning through money" connotates. In fact in Musk's conference call yesterday he views the factory as their main product, which will serve them for decades to come as they expand their sedan/sport/suv/truck/semi lines. Plus Tesla infrastructure is not only the car factory but the battery factory and the solar power and roofing factory. I think it's great that they have diversified products and have built an ecosystem because if they were a "one trick pony" they might not survive long-term. I also believe in the efforts they are making to streamline as much of the process as possible now so they can ramp up to where they want to be. I think it will be time well spent. As for Model 3 production rates, yes so many unknowns with a new car, new battery tech and assembly. Don't understand if people thought this was going to be a cakewalk for them just because they had been manufacturing cars in the past at a somewhat low production level compared to the large established car manufacturers.
If I'm not mistaken a number of the key people who have left had been with the company for many years. I'm sure it's been a gruelling work schedule and while you hate to see valuable people leave it's something that happens to all companies and not unusual for people to want other challenges. Jon wasn't there for that long, since November 2016, and I assume LIft made him an offer he couldn't refuse as they ramp up their global operations.
Sir Guacamolaf
The good kind of fat
I don't know why people seem to get so hung up on "Tesla is losing money". Consider this,
a) Here is amazon's net income vs. revenue.
Not operating for profit, is a perfectly viable strategy for a c-corp. For one, if you do make profit, you have to share a big part of it with your state and federal govt. Why share it if you can reinvest it and outgrow competitors? That is exactly what Tesla is doing, growing as fast as it can.
b) If Tesla needs money, they have a huge credit line. This is not an existential issue by any means.
c) If driving profit was the motive, they could do that immediately, just cut on spending, reduce salaries, fire people across the board. But that would be stupid. They are spending, but spending is not the same as wasting. I don't see Tesla wasting $, do you?
d) And it's not like people invested in Tesla, stock or job or both, aren't doing well. Everyone is getting paid, and the stock has done well historically speaking.
When a company makes a huge profit and socks it in a bank account at 0.01% interest rate, personally I see that as a failure to put that money to work. Every $ you have is your employee, make him/her work.
Look at Apple, they have $268.9 billion on hand. At some point you have to ask, how much cash does a company need on hand to function for the foreseeable future? Even a company Apple's size, $50b is more than enough.
With the ~270b + repatriated money (thanks to the tax law), they can buy Azure + Amazon AWS, and completely change the landscape of what they need the most - move off of iPhone revenue (70% of their current revenue), and turn into a services company, overnight.
They could completely insource hardware manufacturing.
They could make swift and objective-c a whole lot better, or at least comparable to what the rest of the world is using.
They could make graphene batteries that charge in < 10 minutes.
They could get rid of intel after the spectre/meltdown issues.
.. etc. etc..
But they didn't! But they do release new emojis every now and then.
I see this as a failure of management.
Long story short, profit isn't everything.
Ok back to JonMc.
So Jon, where is the party for your new job?
a) Here is amazon's net income vs. revenue.
Not operating for profit, is a perfectly viable strategy for a c-corp. For one, if you do make profit, you have to share a big part of it with your state and federal govt. Why share it if you can reinvest it and outgrow competitors? That is exactly what Tesla is doing, growing as fast as it can.
b) If Tesla needs money, they have a huge credit line. This is not an existential issue by any means.
c) If driving profit was the motive, they could do that immediately, just cut on spending, reduce salaries, fire people across the board. But that would be stupid. They are spending, but spending is not the same as wasting. I don't see Tesla wasting $, do you?
d) And it's not like people invested in Tesla, stock or job or both, aren't doing well. Everyone is getting paid, and the stock has done well historically speaking.
When a company makes a huge profit and socks it in a bank account at 0.01% interest rate, personally I see that as a failure to put that money to work. Every $ you have is your employee, make him/her work.
Look at Apple, they have $268.9 billion on hand. At some point you have to ask, how much cash does a company need on hand to function for the foreseeable future? Even a company Apple's size, $50b is more than enough.
With the ~270b + repatriated money (thanks to the tax law), they can buy Azure + Amazon AWS, and completely change the landscape of what they need the most - move off of iPhone revenue (70% of their current revenue), and turn into a services company, overnight.
They could completely insource hardware manufacturing.
They could make swift and objective-c a whole lot better, or at least comparable to what the rest of the world is using.
They could make graphene batteries that charge in < 10 minutes.
They could get rid of intel after the spectre/meltdown issues.
.. etc. etc..
But they didn't! But they do release new emojis every now and then.
I see this as a failure of management.
Long story short, profit isn't everything.
Ok back to JonMc.
So Jon, where is the party for your new job?
Tesl@ Bargain
Member
So that's why he didn't respond to my last few emails... Bummer! Where do I send my sophisticated emails to now? Jon wanted to clarify the uncorking situation and have a look at unlocking the software-limited AC chargers, which he didn't neither.
Does anybody know if there was a second behind Jon, or did the various teams really just report to Jon directly?
Does anybody know if there was a second behind Jon, or did the various teams really just report to Jon directly?
whitex
Well-Known Member
Here, I corrected that for you.
Yea, because I'm sure Elon thinks he can do a much better job than Jon in between all his other gigs. This is starting to look very concerning, people leaving and Elon thinking he can do it all by himself. How long before we see Elon on the Model 3 production line assembling cars because he fired the workers stating he can do it better himself?Now with Elon in charge we better behave or the next FH launch may have our car between the fairings with us strapped in the seats
My experiences with Tesla phone support was pretty good UNTIL the model 3 appeared. Now a) I have not had anyone answer my calls to tech support in 3 calls and I left two requests for callback without any callback. Certainly not acceptable. So I tried WRITING letters to Musk, McNeil among a total of five managers. The results? None at all. No response of any kind My major problem still exists and local tesla service says they can do nothing without engineering support. All this is not a good sign.
But.. I admit.. I love the basic car and the self steering/driving is as good as it gets right now. But a bit more support of local service by engineering would go a LONG way toward solving problems. My problems now include: a) Three repairs to the right door on my S and it still has wind noise and leaks water. b) The camera in HW1 cars has inadequate dynamic range and loses sight of road markings on bright days if one or more lines is in the shade, c) Yellow lines are very hard for my HW1 cameras to stay locked on. Maybe a new manager will attack these and other problems called to their attention.
But.. I admit.. I love the basic car and the self steering/driving is as good as it gets right now. But a bit more support of local service by engineering would go a LONG way toward solving problems. My problems now include: a) Three repairs to the right door on my S and it still has wind noise and leaks water. b) The camera in HW1 cars has inadequate dynamic range and loses sight of road markings on bright days if one or more lines is in the shade, c) Yellow lines are very hard for my HW1 cameras to stay locked on. Maybe a new manager will attack these and other problems called to their attention.
And if you read about the previous COO leaving Lyft, one could come to that same conclusion about that company.
Jon McNeill, Tesla’s President of Sales and Services, is leaving the company to become chief operating officer at Lyft, a San Francisco-based ride-hailing company.
Tesla CEO Elon Musk announced McNeill’s departure on the company’s earnings call. McNeill has been an active TMC member, often helping solve problems or offer up a special experience for a Tesla fan...
[WPURI="https://teslamotorsclub.com/blog/2018/02/07/jon-mcneill-leaves-tesla-for-lyft-sales-and-service-to-report-to-musk/"]READ FULL ARTICLE[/WPURI]
Jon McNeil has not left Tesla. He is only on a sabbatical to Lyft.
Elon believes earth’s long time energy and climate change solution is not only to move over to electric drivetrains but to severely limit the number of vehicles produced. He knows most vehicles spend most of their lifetime corroding away and cluttering up garages and streets. He knows you do not need to own a vehicle when sophisticated autonomous vehicles will be at your beck and call 24 x 7 for a few dimes from TeslaLyft. He may yet destroy a major piece of our capital society and cultural icon as we know it. More grease.
My major concern is that Jon's promised changes to Elon's view on support for Tesla vehicles. That is support for owners that want to practice an age long ritual of tinkering with bonnet open and refuge under the car for the men folks on weekend. That may now be ended. Very very worrying. Not that staring at a streamlined flat expense of a battery pack bottom is pleasing neither.
On a related note, since I can no longer wait on Jon for support, anybody knows why my salvage vehicle is always running even when stationary and switched off (yes no active connection to mothership). Inverter and Motor always very warm until HV battery totally discharged at greater than 1km/hr when stationary : - ( Please pm if you have a solution. Thanks.
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FlatSix911
Porsche 918 Hybrid
More details here from Electrek ... Tesla President of sales and service leaves, Elon Musk takes over his responsibilities
As far as my experience McNeil was ineffective. My example is the slow rollout of qualified body centers. I remember the PowerPoint presentation he gave saying the shops were expected to complete repairs within 30 days. More than a year later when my MS required repair, it took over four months because of the paucity of repair centers in the DFW area. When I forwarded my concern to him, I heard nothing back from anyone and as far as I can see, the problem still has not been addressed. Good riddance.The only thing that concerns me is I like and use Lyft. I hope he doesn’t screw it up before Lyft says adios to him before he bounces to the next company.
trayloader
Member
You simply cannot "move over" to a company, which major stakeholder is GM.
If You have no ideals sure.
If You have no ideals sure.
Akikiki
A'-Lo-HA ! y'all
Sir Guacamolaf
The good kind of fat
I think Jon made a big difference at Tesla. I agree though that the repairs issue he was totally ineffective on.
Jon is good, but he is no God. I bet he tried hard, got fed up and left, just like many other execs at Tesla.
I realize Tesla has a lot of big enemies, I am not one of them. I bought their product to support them.
I really want Tesla to succeed, but at this point their panties are showing big time.
- Promise after promise, repair situation still sucks
- AP still buggy, FSD non existent
- Quality control is down the toilet
- Far too many execs departing
- Tesla bonds have pretty much imploded
- CEO's twitter antics only rivaled by the president's twitter antics.
I realize this hurts feelings of many here who want Tesla to succeed. But at what point do we wake up and smell the reality? Things are not healthy at Tesla. Lets face it.
Jon is good, but he is no God. I bet he tried hard, got fed up and left, just like many other execs at Tesla.
I realize Tesla has a lot of big enemies, I am not one of them. I bought their product to support them.
I really want Tesla to succeed, but at this point their panties are showing big time.
- Promise after promise, repair situation still sucks
- AP still buggy, FSD non existent
- Quality control is down the toilet
- Far too many execs departing
- Tesla bonds have pretty much imploded
- CEO's twitter antics only rivaled by the president's twitter antics.
I realize this hurts feelings of many here who want Tesla to succeed. But at what point do we wake up and smell the reality? Things are not healthy at Tesla. Lets face it.
Barklikeadog
Active Member
This seems like a good time for a drink and a cold calculated speech with sinister overtones, a speech about politics, about order, brotherhood, power. But speeches are for campaigning. Now is the time for action.
Krugerrand
Meow
Right!? About to become profitable and then seriously profitable, selling more cars than ever, #1 selling car by revenue in the US, taking more and more luxury market share by the minute, continuing to expand the Gigafactory, worldwide SuperCharger Network, SCs and Stores, selling out surfboards and other overpriced limited edition merchandise, accelerating the ramping of Tesla Energy and Tesla Solar...
Heck ya, Tesla is as unhealthy as the Bubonic Plague. Way to call it, brother!
Tesla Engineering has been a black hole of no information since 2013, in my experience. Particularly software engineering.
(Hardware engineering is also a black hole of no information but tends to actually solve the problems. Software engineering just breaks things.)
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