True, but those of us that have been on here for awhile should remember that for at least a good year, maybe two, the analysis from some (due to Elon) was that it was going to be MUCH easier to produce the 3 and they had learned from the S....blah blah blah. Glad the company made it over the hump, but will the third time be the charm for the Y? Only time will tell.....
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Krugerrand
Meow
Umm, I know you wanted this statement to mean negative for the future, but my friend we’ve won every single time. So past determining the future - WIN!
Krugerrand
Meow
You believed that?
And hey, who’s to say it wasn’t much easier? The S nearly shut them down and the X was no picnic. In the scheme of things, one quarter of 3 production hell (all different issues than S/X) might actually have been easier.
hahaha, sure I did. Do I now with the Y? Nope. Plus, there were several people on here putting that into their future projections....anyway....The cluster**** was bigger than it should have been.You believed that?
And hey, who’s to say it wasn’t much easier? The S nearly shut them down and the X was no picnic. In the scheme of things, one quarter of 3 production hell (all different issues than S/X) might actually have been easier.
Hogfighter
Professional Lurker
TSLA fell last week due to macros, so up today due to macros.
Macros aren't moving. They've been NASDAQ ~= +1,5% all day. But TSLA keeps climbing. We're touching on 4% up now.
I can only think that this GM news is being interpreted as good news for Tesla. Perhaps a sign that EVs are the future? Perhaps cash fleeing GM looking for another home in the auto sector? I don't know.
Either way, it's no longer a buyer's market. :Þ Missed my chance. Thank you, unexpectedly-long-bank-transfer-times :Þ
ED: Clearly not cash fleeing GM; GM is up.
The market clearly likes the strategy. I support it, don't you?
Cutting less profitable production lines and redirecting the savings toward EVs. That's a future-looking strategy.
The problem with innovators is that they keep wanting to innovate and improve. In the long run that leads to major breakthroughs, but in the short term it causes higher costs (as these are far from optimal) and longer design-to-production times. Elon is very honest every time he says the company learned from previous mistakes and they will implement the lessons learned into the design of the new product. But then he goes off on what-if tangents, trying to optimise functionality and aesthetics, and so the whole process optimisation thing goes off the rails. Let's not forget the famous "JB and the guys pulled me back from the edge of the cliff" quote when discussing the design of the Y.
So, yes, things will get more complicated than they need to be to just produce a compact SUV. Or a truck. Or a semi. But that's exactly why we're all buying TSLA rather than GM, Ford or VW stock. Because the result is always amazing and changes the status quo.
Todd Burch
14-Year Member
Wall Street has bad eyes. Can't see much further than my grandma (and she passed away years ago, bless her soul).
They are notoriously bad at thinking beyond a few weeks into the future.
Cost-cutting usually causes SP to spike (short term atleast)
JRP3
Hyperactive Member
Since Tesla could have gotten more cash if needed I do think Elon was being a bit over dramatic.
Fact Checking
Well-Known Member
Detailed Reuters article about GM restructuring and closing factories:
"GM has begun what is expected to be a long and expensive transition to a new business model that embraces electrified and automated vehicles, many of which will be shared rather than owned.
The No. 1 U.S. automaker signaled the latest belt-tightening in late October when it offered buyouts to 50,000 salaried employees in North America, with the aim of reducing headcount by 18,000. It plans to trim executive ranks by 25 percent, the source said.
With U.S. car sales lagging, several car plants have fallen to just one shift, including its Hamtramck and Lordstown, assembly plant.
A rule of thumb for the automotive industry is that if a plant is running below 80 percent of production capacity, it is losing money. GM has several plants running well below that. Consultancy LMC estimates that Lordstown will operate at just 31 percent of production capacity in 2018."
Ouch...The No. 1 U.S. automaker signaled the latest belt-tightening in late October when it offered buyouts to 50,000 salaried employees in North America, with the aim of reducing headcount by 18,000. It plans to trim executive ranks by 25 percent, the source said.
With U.S. car sales lagging, several car plants have fallen to just one shift, including its Hamtramck and Lordstown, assembly plant.
A rule of thumb for the automotive industry is that if a plant is running below 80 percent of production capacity, it is losing money. GM has several plants running well below that. Consultancy LMC estimates that Lordstown will operate at just 31 percent of production capacity in 2018."
$GM is of course up 5% on the job cuts (which improve margins) - Wall Street missing the forest from the trees again.
I think this moment marks the beginning of the end of the ICE industry as we know it: the more visible part of the long slide down has begun.
Also, are any of these GM sites large enough for a new Gigafactory? Asking for a friend!
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Article on SA just now on the Model 3 mystery shopping experience. Haven't read the whole thing, but the bearish tone is clear. Won't provide a link, cuz... what would be the point of helping this guy monetise his FUD?
But I cannot avoid being struck by the coincidence of releasing this on a day when TSLA is on a tear. OMG, am I turning into a conspiracy theorist?
But I cannot avoid being struck by the coincidence of releasing this on a day when TSLA is on a tear. OMG, am I turning into a conspiracy theorist?
Timely post. If GM gets to the 39.45$ Lvl I’d recommend selling the position bought last month at $30
Fact Checking
Well-Known Member
It's I believe a very predictable "job cuts" Pavlovian reaction: more short term profits, higher margins, better acquisition target. GM didn't grow so there was no growth expectations reduction backlash.
Thumper
Active Member
Not caught up, so this may be redundant. Rivian looks like a great pickup. It makes me wonder if Tesla should just cede that segment and put capital into semis etc. That might advance the mission more than competing with Rivian.
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