Nolimits
Member
Yeah, if they flip MY production to Texas, I'm wondering how much M3 capacity that could open up in Fremont. After MY ramps in Giga BB, I think M3 could follow, but not in time for 2022.
Basically, I think Tesla may need to produce at least 100k more M3 than whatever they were planning before the Hertz order. This is not just because that order is 100k, but because the marketing effect of the Hertz fleet could substantially drive up M3 demand.
Speaking of marketing effect, I'm thinking that one Model 3 at Hertz could be rented out 2 to 4 times per week. This means a fleet of 100k Model 3 can generate 20 to 40 million high quality, immersive marketing exposures per year, along with word-of-mouth buzz. This has got to drive demand in ways that Tesla has heretofore never seen. Of course these exposures will likely drive demand for all Tesla models, but it could substantially alter the ratio of M3 to MY ordered. Tesla may want to have some flexibility to crank out Model 3 at a higher than expected rate.
On top of the marking effect, think about ALL the extra driving miles of real world data they will continue to collect? Powerful stuff.