Model 2/Robotaxi (and where to build them) is a large topic, and deserves much more analysis. Quoting his recent
Exclusive excerpt from Walter Isaacson's latest book: "Elon Musk"
"in May 2023, Elon decided to change the initial build location for the next-generation cars and Robotaxis to Austin"
So we've only learned this in the past few days, but let's go back to the discussion that was circulating during the first week of June, 2023:
Tesla Giga Texas May Be Completing Construction of Additional Production Line, Possibly for Model 3 | Tesmanian Blog (Jun 09, 2023)
"Tesla may be completing two additional production lines at Giga Texas. While one of them is for Cybertruck, the other one is possibly being built for Model 3."
As I mentioned upthread, the buildout of more Model 3 production capacity seemed unlikely at the time due to the likely terminal demand at the $35K starting price-point. It seems that this Model 3 rumor was a red herring.
Going back a little further to Jan 23, 2023, Tesla Chief Designer Franz Von Holzhausen appeared in a "Ride The Lightning" interview saying that he was 'chomping at the bit' to talk about the new car' but couldn't talk about it yet:
Episode 389: Special Guest Franz von Holzhausen Talks Cybertruck, Roadster, and More! (cued to the where Franz talks about the MiC "Model 2")
Franz was also interviewed by Motortrend on Mar 31, 2023:
Design work for Gen3 Compact Car/Robotaxi was already well along by end of Q1 2023, which lends credence to Isaacson's notion that in springtime Tesla leadership was holding meetings with Elon to convince him to build both cars on the same production line.
In May, Elon seems to have agreed by deciding to build Gen3 first at Giga Texas. Let's look back at some cryptic comments made by Joe Tegtmeyer shortly thereafter:
Overall, what can we learn from this episode, and how to we go forward?
- First and foremost, it takes MONTHS or possibly YEARS for decisions to be finalized
- Also, Retail investors don't neccessarily find out for MONTHS what was actually decided, then only by speculation and analysis (always obfuscated by the MSM)
- At the end of the day, decisions are always about how to advance the MISSION
- Tesla's mission is to accelerate the world's transition to sustainable energy.
Now its humble time, time to admit that
WE talked ourselves into believing that Gen3 would be built first at Giga Mexico. This
IS NOT what Tesla (or Elon) said, that's what
WE said.
Here is Elon's direct answer on this last question from the Tesla 2023 Investor Day
Q&A Session: (which we soundly ignored)
"Tesla Investor Day 2023 Q&A | "Next Gen Car 3 questions" | Tesla (March 01, 2023)
Chris ???: "I have a few follow ups on the Next Gen vehicle. First, when do you think we'll get a look at it, maybe a prototype? Second, are there any detail you can share in terms of the size, the content, the performance. Third, I think you mentioned that you would produce it in other plants in addition to Mexico, should we take that to mean you can launch it at an existing plant before you're finished constructing the new plant in Mexico?"
Elon Musk: "I think we'll probably have to decline that answer. We will have a proper sort of Product Event but we would be jumping the gun if we answer your questions. Maybe another question if there's..."
Lol, sometimes the answer is '
not yet, be patient'. As always, investing comes down to a simple choice:
Do you trust Management? If yes, then stay invested. And possibly, sprinkle a bit more salt on 3rd-Party opinions going forward.
Cheers to the Longs!