Maybe Elon Musk is not as smart as he thinks he is

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tortillasoup

Golden Member
Jan 12, 2011
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I guess you also missed the new seats also in the D. How many firms have a four door performance sedan that does a 0-60 in 3.2 seconds? How many car manufacturers do over the air updates to their cars? How many manufacturers have a super-charging network like Tesla Motors?

They are increasing production. There is only so much they can ramp up production considering where they came from and the limitations of Capital on hand. It isn't like they can flick a switch and go from 25,000 cars in a year to 250,000 cars in a year. A increase in production of 40-50% each year is perfectly healthy for them, I would be concerned that scaling production increases beyond this would create quality issues. They are also learning as they go along how to produce quality cars, as evidenced by the quality issues in earlier production cars. Also battery production, Panasonic could also only produce so many batteries. It doesn't matter if you can produce 250,000 cars a year if you can only get batteries for 100,000 cars a year, does it? Tesla is building the battery production and factory capability to hit 1/2 Million cars by the end of the decade. I have no idea if it will be enough but not buying into the traditional dealer network setup will not be the difference between success and failure for them.

Yeah Tesla is completely battery constrained as of this moment. They could build more vehicles per week but there would be no point because they don't have the batteries to go with it. It makes sense why they keep delaying the Model X, they don't want to cannibalize their Model S sales. I'm hoping they'll just keep delaying the Model X past the point they release the Model 3 because the sales of the Model X would not help with their profitability at this point.
 

stlc8tr

Golden Member
Jan 5, 2011
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You do realize that he owns 60% of SpaceX right? That company that sends supplies to the ISS and has a 2.6 Billion contract with NASA for Commercial crew flights. They also have Billions in booked flights with private commercial companies for launches.

I tried looking doing a search for his ownership stake but wasn't able to find anything. Where did you see the 60% figure? I just saw some articles saying that he retained a "majority" stake.
 

Puppies04

Diamond Member
Apr 25, 2011
5,909
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The law. There are dealership laws in some states that require new cars to be sold by 3rd party dealers. He may have money, but not more money and power than all the dealerships in a state.


I'm confused, are the laws set by the states or the dealership? You make it sound like the latter which is precisely what is so messed up with the situation. I have no problem with privately owned dealerships but as soon as you ban manufacturers from selling their own product without a middle man then I guarantee you someones pocket is being greased to pass that legislation.

Tesla needs to sell all its own cars for 2 reasons as far as I can see.

1. There is no guarantee that dealerships will give the same quality of service that tesla want.

2. Tesla is a niche product at the moment, there are limited number of potential buyers out there and tesla doesn't need middle men eating into its profit margin.

In the same position I would rather not sell cars in the states which have these laws and the companies that run this little circle jerk arrangement can go to hell.

I have yet to see even one decent reason put forward why these dealership laws exist, supporters just mumble about it allowing a better customer experience.
 

Brovane

Diamond Member
Dec 18, 2001
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