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Should Tesla cut its losses...

Discussion in 'Model X: Ordering, Production, Delivery' started by zambono, Apr 20, 2016.

  1. zambono

    zambono Member

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    when I first saw all the new features and the FW doors I knew they were going to be a warranty nightmare. Now that premonition is becoming reality. I'm not a short but I think Tesla should cancel or delay the X and focus on the 100's of thousands of 3 they have on reserve. I want the company to survive and if they have to have a model S in hand for every X because they are constantly being worked on it doesn't bode well.
     
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  2. zambono

    zambono Member

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    You can dislike all you want but if they are unable to improve on quality it might be their only option, that or stick to only delivering a couple thousand a year.
     
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  3. aesculus

    aesculus Still Trying to Figure this All Out

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    It very well could be a specialist type of car. No problem with that.

    Different set of people involved in Model X and Model III right now so no interference except perhaps with EM. In a year or so that will not be the case and they will need all hands on deck worrying about the Model III
     
  4. zambono

    zambono Member

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    I'm thinking they are going to need all those hands much sooner due to the incredible amount of 3 reservations at which point spending resources on a losing proposition might make it unacceptable to management, board, stock owners.
     
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  5. Pdub2015

    Pdub2015 Member

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    Disagree completely. I think they need to solve the issues and deliver the X models that have been and will be ordered. I think MX has the potential to be a bigger success than MS, and certainly the flagship of the line. In this it is critically important.

    That said, how do you feel about them scuttling the FW feature and going with normal doors? I think it would be a mistake, but not as big a mistake as canceling the line like you're proposing.
     
  6. rolosrevenge

    rolosrevenge Dr. EVS

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    If they were to cancel the X, it would undermine confidence in the 3 reservations. I think they'll work out their issues soon enough.
     
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  7. Skotty

    Skotty 2014 Model S P85

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    #7 Skotty, Apr 20, 2016
    Last edited: Apr 20, 2016
    Can you imagine the endless waves of bad press and hate posting they would receive if they ended up scrapping the Model X? They just need to FIX IT!



    BTW, if you want to see the full skit, it's pretty hard to find, but at least for the moment, you can find copies of the first 2 segments here: The 5 Funniest 'Saturday Night Live' Skits About Money
     
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  8. DougH

    DougH Active Member

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    Elon would NEVER throw in the towel on Model X.
     
  9. MikeL

    MikeL some guy

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    Every day I'm amazed by the "ideas" thrown at the wall around here. Did you really want to see if "cut your losses, abandon Model X" was going to stick? The CEO has already said "hubris", "most difficult car to produce", "probably no one should have tried to make this car" etc. (sorry for the paraphrasing). To "cut its losses" now means: produce the very high profit margin car you have developed, in volume, enabling the Model 3.
     
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  10. Skotty

    Skotty 2014 Model S P85

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    I keep reading this over and over and it sounds thoughtful, but I still can't figure out what it means or whose side you are on. You, my friend, might have a bright future in politics.
     
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  11. MikeL

    MikeL some guy

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    Ha! That's what my wife says. Not nearly ambitious enough though.
    I was trying to say that the X is part of the master plan that is well under way, and being carried out amazingly well, leading to the mass market 3, but was maybe a bit too ambitious on their part, and they realize that now. It won't be dropped, it will be amazing! Better?
     
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  12. ModelXBoy

    ModelXBoy No More Door Captain of TMC! Oh Yeah Baby!

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    Model X is what Tesla innovation is all about. Model S is great but it's only an electric car with longer range, nothing else. Sooner or later people will catch up or just use Tesla open patent. But Model X is what Tesla is known for Innovation! Without X, there won't be Model 3. Without X, far fewer people will jump on the electric car including myself. Without X, I will not buy a Tesla! But this is not the case, Elon personally is driving a Model X and he puts most of his energy in Model X. Model X is Tesla's flagship car, not Model S. The amount of new innovations and technologies that went into the Model X is what Tesla need to progress into the future. Not just the first to do electric vehicle.
     
  13. Skotty

    Skotty 2014 Model S P85

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    Got it. Thank you for the clarification.
     
  14. lklundin

    lklundin Member

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    #14 lklundin, Apr 20, 2016
    Last edited: Apr 20, 2016
    I disagree.

    Model S had and still has plenty of innovation.

    Model X has sucked out a lot of R&D resources for little profit, so may actually have delayed Model 3.
    The Model X may also have undercut confidence in Tesla, not only because of the quality and delay issues, but because of Elon Musk's inability to limit the scope of the car. Remember that the secret master plan is a sequence of ever more affordable cars, not the opposite.

    Also, your preference for the X does not mean it is essential to the company nor people in general.

    Now that the Model X is out there, I think the best strategy for Tesla is to iron out the remaining quality issues (of which there seems to several).

    And most importantly: Learn from the mistakes, and keep the Model 3 simple and on schedule.
     
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  15. zambono

    zambono Member

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    It would be less spectacular but those who want an SUV and have the means will buy it the same
     
  16. zambono

    zambono Member

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    The X is not enabling the 3, not at the current volume and with all the issues and delays.
     
  17. zambono

    zambono Member

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    This is the best solution for the company to save face but it will be the costliest. In my original thread I mentioned the X is going to be a warranty nightmare, once the warranty is over it's going to be a repair nightmare. If this is the case expect used values to be on the low side once warranty is over.
     
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  18. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    Model 3 production in the quantities that Tesla wants (100's of thousands per year) is not possible without the Gigafactory. While Model X may not be enabling Model 3 right now, it is likely not the limiting factor.

    Since 2012/2013, I have projected Model 3 as reaching mass production in 2018.
     
  19. Zythryn

    Zythryn MS 70D, MX 90D

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    This would be foolish.
    The amount of money and personnel required to fix any issues pales in comparison to the money already spent on design, engineering, and manufacturing. It would be similar to tearing down a house because the front door is the wrong color.

    The setback of canceling the X would harm eventual sales of the Model 3 and in no way would speed up availability.

    The first model year of a new car always has a higher rate of issues, especially if it is a brand new model.
    How the company responds to those issues determines success or failure of the model.
    So far, Tesla seems to be responding pretty well.
     
  20. wdolson

    wdolson Active Member

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    Discontinuing the Model X now would be a very bad idea. One that could sink the company.

    1) Sales of Model Xs are necessary to make the Model 3. The X has a huge profit margin and not all Xs have problems. They can afford to have the problem cars come back in and do some recalls without burning through the profit margin.
    2) One thing Tesla has to prove every day is that they are a reliable company that's going to be there for the long haul. Canceling the X would badly hurt consumer confidence in the brand.
    3) Canceling the X would destroy the stock price and without the sales from the X, it would make it even more difficult to raise the money for making the Model 3.
    4) The Model S had a plethora of problems early on. What they are selling now is the car with the bugs worked out. The Model X will get there. The X is probably more reliable in its first year than the S was. People have an impression the X is a turkey because there is more media attention now, and the new wave of buyers aren't the early adopters the early S buyers were and they want Toyota quality on a car that has only been built in the low thousands so far.

    Tesla needs to stay the course and work out the problems with the X. It's the only course that keeps Tesla in business.
     
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