sweter
Member
Yup. And where Uber had to fight legal battles for ride sharing, expect those battles at least twice harder for Tesla's FSD.
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Yup. And where Uber had to fight legal battles for ride sharing, expect those battles at least twice harder for Tesla's FSD.
Fact Checking
Well-Known Member
There's no need for you to repeat this same argument many times, we already know roughly how much capex is required for 8k-10k/week, independent experts from Evercore ISI recently audited the Fremont factory and estimated a capex in the 'tens of millions of dollars' range to reach 8k/week and 10k/week:
- “Based off our tour and what we saw, we see no reason why Stamping and General Assembly should not be able to handle [seven to eight thousand cars per week] today, and even potentially 10k units, with very little incremental Capex. We believe the same is also true for the Paint Shop when it comes to reaching 8k units a week, with some incremental capex potentially required to get to 10k units."
- "For Body, our understanding is that incremental capex is required (our impression is in the tens and not hundreds of millions) in order to get to both 8k units and eventually 10k units."
Along these lines, someone here previous mentioned starting the Tesla Network early, with people driving manually for now, and using that to essentially drive further demand in addition to profits. That still sounds like a fantastic idea to me.
Fact Checking
Well-Known Member
Combined margins were actually 25% this quarter, so it's the $718 TSLA valuation line that applies ...
Saconnaghi asking my question about 35k$ margins!
Damnit that answer is disappointing AGAIN.
Damnit that answer is disappointing AGAIN.
Fact Checking
Well-Known Member
They might not run out of Medium Range and Long Range orders in 2019, so I think they'll delay the release of the Standard Range.
That's capitalism: sell the more expensive products first, if you have the choice.
So it sounds like batteries are no longer the bottleneck. What’s holding them back from 6 to 7 k per month. Paint?
What is disappointing? They said cost at
$30k of under is the goal to start selling the $35k car. There’s your margin. And Deepak sounded positive on getting there.
Sure, if they create an uber type network, where owners sign up and just get directed to riders and Tesla for example runs that network, without taking much if any spiff from the drivers - sure, I could see THAT coming sooner for sure. If they haven't developed that platform yet though, I would put that business/services model at 12-18 months out.
Ulmo
Active Member
Third time I've heard them say Service will be revenue positive in the future, but first time I realized what I heard and believed that's what they meant. Elon used to say that it would be around revenue neutral; I forget if he was talking nearer term back then, but that's not how I remembered it.
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sweter
Member
From the bear turn long, Mr. Left.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Elon should have stayed with saying service should be profit neutral. Deepak saved him by saying positive margins would come from used car sales.
They might be at the point where it's no a single constraint anymore but overall process efficiency.
I think there isn't anything that is holding them back. They will be at 7k per month soon enough. But now it sounds like they might go above 10k per week, although not in Fremont but globally. They have announced that they will start bringing some parts of production of Model 3 to China in 2019.
Johann Koeber
Happy Owner
Change of strategy: Repair shop is to be profit center. Formerly Elon said the service was not to produce profits, but to break even in time. Now he foresees profits from repairs shops as the fleet ages.
sweter
Member
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