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Short-Term TSLA Price Movements - 2016

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If the MX is actually being built that slowly, the most likely reason would be a parts shortage from a vendor. If they rejected a parts shipment, it might set them back a few weeks to a month. Instead of running out of the part and stopping production, they might have rationed. Rationing would prevent the possible headline "Tesla Halts Model X Production".

Since real retail customers posses actual Model Xs, I doubt there is a fundamental problem here.

Although I expect Musk has considerably more respect for the difficulties of actual auto manufacturing today than he had five years ago.

Another possibility is that they have accumulated several improvements in design, parts and manufacturing and they are now testing those out at a low production rate. The wait time can be both from internally sourced components as well as from external.
 
Another possibility is that they have accumulated several improvements in design, parts and manufacturing and they are now testing those out at a low production rate. The wait time can be both from internally sourced components as well as from external.

I just returned from 2 different Service Centers today. I wish I had good news, but I don't. The quotes I heard were:

"The Model X is over-engineered, and that's coming from the engineers"

"I feel sorry for the techs. They're getting killed with the X"

"Issues such as the doors not opening when they should"

It is sounding more and more like what some of us feared: That this car is unnecessarily complicated and is going to be a major headache for Tesla. I mean, it's gorgeous (saw 2 of them), but I can't possibly imagine that they will ramp up to 800 per week by March with quality issues still so prevalent. Hope I'm wrong.
 
I just returned from 2 different Service Centers today. I wish I had good news, but I don't. The quotes I heard were:

"The Model X is over-engineered, and that's coming from the engineers"

"I feel sorry for the techs. They're getting killed with the X"

"Issues such as the doors not opening when they should"

It is sounding more and more like what some of us feared: That this car is unnecessarily complicated and is going to be a major headache for Tesla. I mean, it's gorgeous (saw 2 of them), but I can't possibly imagine that they will ramp up to 800 per week by March with quality issues still so prevalent. Hope I'm wrong.

Thank you for the info. It is just a normal SUV though, except for the doors, the windshield and the aluminium body. So I don't think there are reasons to worry about it eventually ramping up reliable production.

It seems Q3 was not the time for delivery to customers and that they should have taken more time before and not half promise unrealistic dates.

Comparing to how other manufacturers are handling a new model delivery to customers Model X would have been released late 2016 :).

Remains to be seen if they are going to do the same thing for Model 3.
 
Another possibility is that they have accumulated several improvements in design, parts and manufacturing and they are now testing those out at a low production rate. The wait time can be both from internally sourced components as well as from external.

Discussions in the X threads tend to favor such an interpretation. Tesla has identified certain troublespots and is making changes before the number of produced Xs gets too high. Substituting one type of sensor in the falcon wing doors for another is a popular explanation. Overall, discussions tend to show frustrations with the lack of communications but joy with the X itself, with the existence of some discrepancies.

Overall, the tone I hear in the X forums is not as dire as what hogfighter encountered by speaking with a couple of service centers. The sample of two service centers may not accurately reflect impressions at the majority of service centers, but is a data point to consider.
 
If the MX is actually being built that slowly, the most likely reason would be a parts shortage from a vendor. If they rejected a parts shipment, it might set them back a few weeks to a month. Instead of running out of the part and stopping production, they might have rationed. Rationing would prevent the possible headline "Tesla Halts Model X Production".

Then what are they working on during the 12 hour shifts for 4 days a week? I stick by my opinion, that the X production is slow because it is just more complex to build. I have said the same thing after Sep 29th reveal when I saw Tesla bring just 6 cars for 1000+ people; the same 6 cars that were delivered that day.
 
Elon visited Paris on his way back from Hong Kong and gave a Q&A: Ma vie en Tesla la rencontre avec Elon Musk - YouTube
Talks about all kind of stuff including new factories and that they will add the European standard plug to Superchargers in Europe.

One of Elon's statements in the video is that Tesla is not going to show the whole Model 3 until closer to production. You can take this two ways: Tesla wants to leave room for tweaking the design or Tesla has a cool feature that they don't want competitors to copy. Let's hope there's enough of Model 3 shown that people can feel comfortable putting down deposits.

Edit: Actually, Elon said, "We're not going to show everything about Model 3 until much closer to production." Interpret how you like.

also, Elon spoke of European superchargers including the European standard plug along with the Tesla plug. I interpret this statement to indicate that negotiations are well underway with another car company to join forces on the supercharger network.
 
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One of Elon's statements in the video is that Tesla is not going to show the whole Model 3 until closer to production. You can take this two ways: Tesla wants to leave room for tweaking the design or Tesla has a cool feature that they don't want competitors to copy. Let's hope there's enough of Model 3 shown that people can feel comfortable putting down deposits.

also, Elon spoke of European superchargers including the European standard plug along with the Tesla plug. I interpret this statement to indicate that negotiations are well underway with another car company to join forces on the supercharger network.

Ok, so they are planning to just show some and then still accept deposits. That could work :).

Worst case would be if both Model X is not in steady production by then and that this would cause delay to Model 3 as they put resources behind X. Best case would be if Model X problems is solved next week and they have margins with respect to time for Model 3.

The lack of information has increased the risk so SP going down is logical all else equal.

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Well, if they're changing specs the same quarter as launch they're kinda asking for trouble.

Well they seem to launch a new model differently than others, more like an open beta. The specs have changed because they saw problems/improvements after the first 500 cars.
 
One of Elon's statements in the video is that Tesla is not going to show the whole Model 3 until closer to production. You can take this two ways: Tesla wants to leave room for tweaking the design or Tesla has a cool feature that they don't want competitors to copy. Let's hope there's enough of Model 3 shown that people can feel comfortable putting down deposits.

As an investor/trader, I really, really, REALLY hate they will show some features/cool things closer to production. I want to scream. All this means to me is that they can screw it up again re challenges/timing. Competent, electric Model 3 at 35K shouldn't have any trouble competing with BMW 3 series and likes. Especially that it will pick up couple of features from pred-cessors: best in the class UI interface, over the air updates, summoning, auto-pilot, lots of power, insane torque. Lower cost of maintenance. What more do you need?

Make it safe, make decent seats, make it look good, and be done with it, for god's sake!
Uuuuuuugggggggghhhhhhhh!

also, Elon spoke of European superchargers including the European standard plug along with the Tesla plug. I interpret this statement to indicate that negotiations are well underway with another car company to join forces on the supercharger network.

I read this as unilateral move to put standard European EV plug. Maybe show goodwill to European e-car drivers? Maybe force the hand of some other manufacturers? Their clients will be able to access Tesla independently, and will exercise pressure on manufacturer of their car to work out bulk-buy deals for electricity with Tesla. Otherwise, imagine first page title: "Everything is ready for BMW drivers to take advantage of superchargers, but BMW doesn't want to sign a deal"
 
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As an investor/trader, I really, really, REALLY hate they will show some features/cool things closer to production. I want to scream. All this means to me is that they can screw it up again re challenges/timing. Competent, electric Model 3 at 35K shouldn't have any trouble competing with BMW 3 series and likes. Especially that it will pick up couple of features from pred-cessors: best in the class UI interface, over the air updates, summoning, auto-pilot, lots of power, insane torque. Lower cost of maintenance. What more do you need?

Make it safe, make decent seats, make it look good, and be done with it, for god's sake!
Uuuuuuugggggggghhhhhhhh!

QUOTE]

This sounds Exactly what I said about the X many, many months ago......Safe, fast, low maintenance EV by itself will blow away the CUV/SUV competition. Hopefully EM learned his lesson.
 
Can someone please explain what this means to me?


There is such thing as standard EU EV plug: Europe Sets Common Standard for Electric Vehicle Charging | ENS

Means nothing to you, but perhaps enables drivers of non-Tesla to use Superchargers in the future, once payments are figured out

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This sounds Exactly what I said about the X many, many months ago......Safe, fast, low maintenance EV by itself will blow away the CUV/SUV competition. Hopefully EM learned his lesson.

One can argue you were right. My bank account would agree with you.
One can argue falcon doors etc. are more than worth its cost in marketing value.
One can argue adding new tricks to Model 3 may again be worth as a marketing tool.
But I KNOW how will I vote with my own money if situation looks even remotely similar.
 
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There is such thing as standard EU EV plug: Europe Sets Common Standard for Electric Vehicle Charging | ENS

Means nothing to you, but perhaps enables drivers of non-Tesla to use Superchargers in the future, once payments are figured out

- - - Updated - - -



One can argue you were right. My bank account would agree with you.
One can argue falcon doors etc. are more than worth its cost in marketing value.
One can argue adding new tricks to Model 3 may again be worth as a marketing tool.
But I KNOW how will I vote with my own money if situation looks even remotely similar.

^^ If TM is trying to bring the model3 in at base price of 35K I am not sure how they can do so and still have new tricks.....Just one person's opinion.

TM will not be able to fill reservations for 1-2 years (minimum) and without any tricks it will blow away the competition. Leave the tricks to the X....:wink:
 
One can argue adding new tricks to Model 3 may again be worth as a marketing tool.
But I KNOW how will I vote with my own money if situation looks even remotely similar.

I distinctly remember Elon saying during a shareholder conference call that the Model 3 would be "less adventurous" than Model X.

My hunch is that Model X got off track because it was never part of Tesla's original plan, and the designers went overboard creating their fantasy vehicle.

Model 3 has price and volume targets, plus the sales have to support Gigafactory output. The company cannot screw this up. I think Tesla is well aware of this and feels the pressure!
 
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