What If....?

[Mark C]

Didn't the Fiat CEO say that he can make an affordable EV in 12 months if Tesla can make $ on the model 3?
Fiat Could Build Model 3 Rival in 12 Months Claims Its CEO

if Elon “can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair, and get it to the market within 12 months.”

They would more likely copy the Ford plan, where Magna International converts a car and Ford doesn't need to do much besides choose a well optioned version with the Magna blueprints and sell it in minimal numbers via dealers who don't really want to stock / sell it.

 

[voip-ninja]

I think this sums it up. There is no turning back for Tesla. They have taken in $400 million in deposit and will likely raise additional capital soon. They are fully committed to the M3 and being a major car producer. I do not think they could survive as a niche producer of the S and X.

If it is determined that they can't sell the M3 for 35K with a positive margin, then they will definitely raise the price. Selling the M3 at a loss isn't really an option. They need to demonstrate that they can operate cash flow positive with the M3 at full production.

This is what scares me about Musk. He does too much. Just give me a nice car, on time at a price that allows Tesla to make a profit....nothing more. I do not want to own the next Edsel or Delorean.

They won't raise prices and they probably have something better than a napkin sketch on what the costs will be.

Worst case for them is that the base model is break even early on until volume production really ramps and in the interim they make their money on options and deliver those cars first. Which it sounds like is already their plan.

 

[Skotty]

The strength of Tesla comes in part from strong backing. If other companies were paving the same road as Tesla, it wouldn't be so big a deal. But right now, Tesla is still dragging all the other manufacturers along, and if Tesla fell, all the others would likely back down from doing EVs. There are many like myself who don't just want to see Tesla succeed, but are willing to provide financial backing.

While Tesla makes great cars (thank you, Tesla!), I buy from them largely just to support the company. As long as they stay true to the mission, if they were in trouble, I'd be willing to cut them a check for nothing in return. Many others would too. Even giants like maybe Google might be willing to cut Tesla deals to help Tesla stay alive if they ran into trouble. Tesla makes mistakes and has occasional trouble just like any company, but their mission, which is unique in the industry, is strong, compelling, virtuous, and undeniable. In my opinion, that earns a lot of backing other companies don't have and makes for a solid foundation for the company.

Call me a fanboy or nut, but I believe whether Tesla lives or dies will have a direct impact on the future quality of human life on the planet. There are many who talk, but Tesla is driving real action towards moving us towards a cleaner renewable future in both transport through Tesla vehicles and power production and storage through Tesla Energy. Those who support movements like this today are helping to ensure the quality and security of future generations of those who think it's all a political play or hoax; to those folks, you can thank us later.

 

[melindav]

Worst case for them is that the base model is break even early on until volume production really ramps and in the interim they make their money on options and deliver those cars first. Which it sounds like is already their plan.

I know we all have assumed 'the plan' is high optioned cars will be the first, based on logic and the past rollouts, but has Tesla/EM mentioned this?
I've only seen or heard the Employee->West to East (Owners first)->International->Right hand drive specifics from Tesla and we all have added in the cost piece. I agree it makes sense, but just curious if it has formally been stated by Tesla.

 

[Colsla]

One thing I will say for Hyundai, they put more features and technology into the roomiest cars for the price. We just bought my wife a Sonata Hybrid and she is thrilled with it.

Now, when it comes to pure EVs that's another conversation. I think if they really committed themselves to being a player in the EV marketplace they could do great things...but they don't appear to be very committed to that direction.

Dan

It's unfortunate that they just announced that they are eventually gonna go hydrogen direction :/

 

[JeffK]

It's unfortunate that they just announced that they are eventually gonna go hydrogen direction :/

I'm hoping they see the error of their ways once Tesla shows you can build long range affordable EVs. I believe I read at one time it costs like $50 to fill up with hydrogen per tank at the handful of stations in California.

 

[Booga]

I'm hoping they see the error of their ways once Tesla shows you can build long range affordable EVs. I believe I read at one time it costs like $50 to fill up with hydrogen per tank at the handful of stations in California.

That, and availability has been limited. Some of the folks with the Honda hydrogen fuel cell cars have reported very long waits at the fueling stations and/or not even being able to get a fill up. Some went ahead and got another car because of how much of an issue this became. Electric has enough hurdles, and it can be charged (though slowly) with any 110V outlet. Hydrogen has even greater difficulties, in my opinion.

 

[voip-ninja]

It's unfortunate that they just announced that they are eventually gonna go hydrogen direction :/

From the man who called hydrogen "an incredibly stupid fuel choice"? Hilarious!!

 

[ElectroFroggy]

Even giants like maybe Google might be willing to cut Tesla deals to help Tesla stay alive if they ran into trouble.

Agreed 100%. Larry Paige was willing and ready to step and and save Tesla at it's darkest hour.