Should Tesla cut its losses...

[Galve2000]

They will get the Model X right eventually. no reason to abandon anything. The sky is not falling.

 

[Right_Said_Fred]

Development of Model X has not hurt the timeline of Model 3. Model 3 could not have been produced earlier because battery prices have to come down more from where they are now (which comes from two elements: time and the Gigafactory). It would never have been possible to introduce Model 3 at a price of $35,000 for sale in 2015 or 2016. End of 2017 is and was the earliest possibility, regardless of what happened and happens before.

And the huge profits on Model X in the next 2 years will be paying for the investments necessary for further development of Model 3, for the Gigafactory needed for the batteries for Model 3, for the production capacity for Model 3, for extra superchargers for Model 3, for extra service centers for Model 3, etc, etc.

 

[rcarpen22]

All I can say is that after finally getting some time with an X up close and personal, I sincerely hope they produce it long enough for me to be able to buy a fully spec'd P90D version. It is an astounding vehicle. Also, now that they have put so much into it, seems like they should make it for a good long while to recoup some of the R&D expenditures.

 

[lklundin]

Development of Model X has not hurt the timeline of Model 3. Model 3 could not have been produced earlier because battery prices have to come down more from where they are now (which comes from two elements: time and the Gigafactory). It would never have been possible to introduce Model 3 at a price of $35,000 for sale in 2015 or 2016. End of 2017 is and was the earliest possibility, regardless of what happened and happens before.

And the huge profits on Model X in the next 2 years will be paying for the investments necessary for further development of Model 3, for the Gigafactory needed for the batteries for Model 3, for the production capacity for Model 3, for extra superchargers for Model 3, for extra service centers for Model 3, etc, etc.

While these arguments are very good, I think we will only be able to draw a conclusion when the first Model 3 is actually delivered.
But at this time one could counter that if the Model X had been developed so delivery would have started two years ago as initially planned, as opposed to a trickle starting last fall, then Tesla Motors would have been able to allocate more resources to Model 3.

 

[vandacca]

In addition to waiting for the GigaFactory, the Model-3 is still in the design stages, so they don't need a lot of resources yet (compared to Model-S and Model-X). Model-X is not going to significantly impact the Model-3 roll-out.

 

[dmode]

This will be a massive mistake for Tesla and will give naysayers ample ammunition to take down the brand. Model X is a true step forward in automobiles and Tesla will address any early delivery issues quickly to deliver a solid car. The only thing I could see is making the FWD as an expensive option, so that majority of the cars are built without one.

 

[anticitizen13.7]

This will be a massive mistake for Tesla and will give naysayers ample ammunition to take down the brand. Model X is a true step forward in automobiles and Tesla will address any early delivery issues quickly to deliver a solid car. The only thing I could see is making the FWD as an expensive option, so that majority of the cars are built without one.

Unfortunately, Falcon Wing Doors can't be an option. They either have to be standard, or not included at all.

Why?

Because doors and the door openings all impact the design of the car frame, which has severe implications for almost everything else: crash safety, handling, weight, powertrain efficiency, and more. Change the doors from Falcon Wing to conventional, and Tesla basically has to redesign a huge percentage of the physical aspect of Model X. They'd be designing a whole new car.

 

[X Fan]

Agree with comments: re cost/time to redesign, lessened 3 impact due to non-finished Gigifactory ( I’m also assuming that since only the S was being produced they wouldn’t have had enough capital to expand Gigafactory anyway) and impact to reputation.

I’m in the camp that this is a ramp-up speed bump that will be solved. The X hits a fairly large global marketplace (particularly in U.S.) that is willing to pay a premium for an upscale SUV (BMW alone sold 200K X5’s and X’6s in 2015) that given its uniqueness will enjoy a price premium for years to come. I’m assuming that the next product after the 3 will be a small SUV....only when shipping 500K vehicles annually will Tesla have the GM to invest resources to design the small SUV and re-design the X (if need be).

Until then, they should stay the course and work through the “temporary” issues.

 

[aesculus]

While people keep saying the Model X is unique and was not necessary, look at the new Model S. Except for the FWD every other new component on the Model S over the last several years was originally designed as a Model X part. We are still waiting for the auto presenting doors on the Model S, but mark my word, it will be here very soon. I would not be surprised that the towing option (at least for 3500 lbs) does not get added soon too. And the seats too.

So except for the FWD doors and the crazy second row seats, the Model X is starting to drift to the Model S in a big way. It won't be long before EM "90% the same" statement will be true.