Model X Questions we would like asked at Quarterly Earnings Release

[Nubo]

The alpha was shown in 2012 with deliveries announced for 2013 and deposits taken. That date (note they picked each of the dates with knowledge of their own supply constraints) each of the subsequent dates have been missed. From your post about the date slipping again and an article I read online today, the date may slide further. Note: you are assuming that supply constraints have anything to do with the delays. Maybe you have info you can share specifically about the X delays related to supply constraints. If this is the cause, what has changed from Aug 2014 (production line overhaul) to now to improve supply? What will change in the next 180 days to improve supply? Is it your position that they for X they sell, they will have to sell 1 less S due to these constraints.

Good questions about the constraints. I've seen "battery constraints" tossed about in a way that people seem to think obviously accounts for Model X delays. Not sure I get it. They could make both models even if they are "supply constrained". They just end up with a wait list for both. I don't get why some folks take it as a "Law of Nature" that all possible Model S must needs be manufactured first, and Model X only if there are batteries left over??

 

[NigelM]

^^^ Economies of scale.

 

[bonnie]

I'd like to retract the statement about the trailer towing with the Model S. I went back and looked, and what they are saying is not that towing is unsafe, but that the added hitch compromises the safety of passengers in the rear jumpseat in a rear collision.

I was wrong, as I had thought it was towing that they were nixing. I have no idea what the towing capacity of the MS or the MX is. The chassis might be plenty strong, and it must be if they are promising towing.

I doubt, personally, that there is a safety issue in the MS with the tow hitch added -- I suspect it is a CYA thing and no actual testing has been done.

Sorry.

Nicely retracted, bravo for a nice clean statement.

 

[MaxK]

^^^ Economies of scale.

Really doesn't fit this situation. Economies of scale refers to reduced unit cost as fixed costs are distributed over an increasing number of units. Economies of scale is sometimes used incorrectly to refer to becoming more efficient in the use of materials as the quantities increase. That also would not apply to batteries as they don't use less batteries per car as the number of cars produced increases.

 

[NigelM]

Really doesn't fit this situation. Economies of scale refers to reduced unit cost as fixed costs are distributed over an increasing number of units. Economies of scale is sometimes used incorrectly to refer to becoming more efficient in the use of materials as the quantities increase.

When I studied economics the term also referred to cost efficiencies through volume. My reply was to a post that questioned why not run two different products down the line instead of one.

 

[jerjozwik]

my only self serving question would be if the new acquisition of paint-bot 5000s will open up different colors on the X and the S.