TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Planned Inventory Turns on the 3?

Discussion in 'Model 3' started by 22522, Jun 9, 2016.

  1. 22522

    22522 Member

    Joined:
    Jun 6, 2016
    Messages:
    326
    Location:
    Texas
    Does anyone know if they are aiming for 50 turns a year, and a production rate of one car every 45 seconds?

    That keeps inventory at less than 500 million and lets Tesla produce cars fast enough to get all present customer orders a $7,500 tax rebate. Please check my math.

    Might need to redesign some tractor trailers so that they can bring parts in and ship cars out.

    Maybe selectively stiff walls with tubes that push through like knives in a magic show to support the collapsable ramps...

    Any news here?
     
  2. Booga

    Booga Member

    Joined:
    Apr 21, 2016
    Messages:
    362
    Location:
    Ohio
    What do you mean by "all present orders?"

    I think the odds of this for people who reserved after the launch is going to be small.

    Rather than producing at scale right away, tesla can pull two triggers:

    1. Produce and not deliver cars until they are ready to maximize the tax credit
    2. Deliver cars to international buyers so that U.S. orders with a tax credit can be maximized
     
  3. 22522

    22522 Member

    Joined:
    Jun 6, 2016
    Messages:
    326
    Location:
    Texas
    If you look at the cost of inventory (investment), it is much more efficient to carry only the inventory you are currently making (in process) and turn the inventory quickly. Say a week of inventory is $500,000,000 and the only investment is inventory, then return on investment can be very high. If you turn inventory 10 times a year, then investment is 5 weeks or 2.5 billion dollars. Return on investment will be low.

    One key problem businesses have is selling stuff to people who cannot pay. Tesla has enough information to run the numbers on all depositors. I expect they recognize that a large fraction need the tax rebate. The most efficient way to convert those orders into sales is to turn inventory on a daily basis and keep the inventory investment below $100 million.

    The numbers get kind of staggering if you don't try turn inventory 50 to 100+ times a year. Dealers lean on their distribution channels to make their numbers and customer get left out in the cold. Tesla should be hiring and training to make the delivery process time efficient.

    I would be surprised if place in line could not be improved by taking delivery at the factory.
     

Share This Page