Not great work from Bloomberg, there simply isn't much new in this report. We already knew they aren't producing S/X 75 versions anymore, perhaps to both simplify production and to differentiate top spec-d M3 vs. S/X lower spec'd options. Now we hear they are focusing a higher percentage of their production hours on M3, though this Bloomberg report is vague on the details of those hour productions.
I agree, the removal of the 75kWh S/X is probably to somewhat offset the margin hit they are taking by offering the mid-range M3. They seem to be working down market but each step comes with lower margins so they have to go slow to maintain some profit.
once, I wanted to buy a tesla; I was waiting for inexpensive ones to become available. they are clearly not chasing me in my market, and elon musk's public asshattery has convinced me he is not a leader who will bring electric cars to the masses.
Preston Tucker didn't get to sell everyone a car with disc brakes and fuel injection. However, he did help move the industry towards that. Arguably, Elon Musk has already accomplished the same role.
Curious how so? The Leaf beat the Model S to market by 2 years. And through 2018, has sold 126,000+ units in the US (worldwide production blows away Tesla). Tesla has sold 140,000+ Model S's in the US during the same period.
The Leaf is actually affordable for regular people. The Leaf is the mainstream EV.
Also, what other EVs are out there in mass quantities? The Bolt only just came out, same with the i3? That's not a huge mainstream market at all.
To correct a few errors and omissions in the parent:
Tesla sold 141000 Model 3 in the US in addition to the 126000 Model S and X you note in that period. The total is 267000 cars in the US compared to the leafs 126000.
The i3 has been available in the US since 2014, the Bolt since 2016, which is hardly "just came out". However neither car sells in volume, both are well below 2000 per month over that period.
Nissan can make a profit selling an entire car for just over $10,000. Let's say that a large carmaker like them can figure out how to build the entire rest of the car at a viable margin for $10,000. Then we should be able to see $20,000 EVs.
I believe there was a whole year of announcements from Tesla about making cheaper vehicles. They chose to make the more expensive models (better business) but it means I won't buy one (budget).
And yet, they currently make and sell the cheapest car they have ever offered, the mid-range Model 3, currently listed at $44,000 before credits, so $40,250 with the federal credit and $37,750 in California. Which is definitely cheaper than a year ago.
This may be true, but it's not what was said before by Tesla. Personally, I don't blame them for chasing the higher profit models, but it's against their stated mission of the past.
My decision now not to buy a tesla is about elon musk's public behavior (I could afford the $37,750 if I wanted to, but TBH, I buy used cars now).
If it weren't for musk pulling tesla forward, there probably wouldn't be any mass market interest in evs. The leafs are just not nearly as interesting. There wouldn't be a porsche ev without tesla taking some of their market.
I wish we see some other ev succeed without Elon musk. Because till then it is very likely that only lies and hype makes mass market interested in EVs. Because without the lies about fsd, self driving and the futuristic hype, Tesla might not be interesting either
The Tesla strategy was to make margin on premium EVs while the big names ignored the concept. Then to transition to mass market EVs before the big names could squash Tesla. We're getting right into the crunch point where everyone is coming out with an electric car. There are a number of entries selling at or around 10k/year, according to this listicle: https://insideevs.com/lists/10-best-selling-electric-cars-us...
I'm also curious to see if Tesla holds the lead it's earned in the US EV market.
Like many, I pass the Tesla plant on my way to work. When Model 3 shipping was underway, their output lot was full and car carriers were constantly loading.
I noticed a change (which may have been there awhile without me noticing) a few days ago that the output lot is nearly empty and only a few carriers were loading. There's also a ton of empty carriers sitting idle on a nearby street.
Maybe Tesla now has shipping under control and efficient. Or maybe they've finally worked through the Model 3 backlog. Or maybe the showrooms have too much backlog of deliveries and they can't take any more. Or any number of things.
They did a massive sale push at the end of the year due to expiration of federal tax credit. A lot of people who considered ordering, ordered back then, so naturally now there should be a cool off.
It might be because they just sent two shiploads of cars to the EU, several thousand cars each, so that might affect the output lot and the carriers since they only had to go to SF to be loaded on to the ships.
I have a place right next to the factory road outlet for about 3 years and have been counting output.
Since then I've also worked at an office park nearby where Tesla booked up the empty park next to us to use for holding staging. That's where they're starting to put the vehicles now.
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[ 2.8 ms ] story [ 55.3 ms ] threadhttps://www.youtube.com/watch?v=rStL7niR7gs
I first heard this from Etta James, but it's Bob Dylan that wrote it:
https://www.bobdylan.com/songs/gotta-serve-somebody/
The Leaf is actually affordable for regular people. The Leaf is the mainstream EV.
Also, what other EVs are out there in mass quantities? The Bolt only just came out, same with the i3? That's not a huge mainstream market at all.
Tesla sold 141000 Model 3 in the US in addition to the 126000 Model S and X you note in that period. The total is 267000 cars in the US compared to the leafs 126000.
The i3 has been available in the US since 2014, the Bolt since 2016, which is hardly "just came out". However neither car sells in volume, both are well below 2000 per month over that period.
Huge batteries are really expensive. Just the Model 3's battery by itself is something on the order of $10,000 worth at retail costs.
My decision now not to buy a tesla is about elon musk's public behavior (I could afford the $37,750 if I wanted to, but TBH, I buy used cars now).
I'm also curious to see if Tesla holds the lead it's earned in the US EV market.
I noticed a change (which may have been there awhile without me noticing) a few days ago that the output lot is nearly empty and only a few carriers were loading. There's also a ton of empty carriers sitting idle on a nearby street.
Maybe Tesla now has shipping under control and efficient. Or maybe they've finally worked through the Model 3 backlog. Or maybe the showrooms have too much backlog of deliveries and they can't take any more. Or any number of things.
It's odd.
Since then I've also worked at an office park nearby where Tesla booked up the empty park next to us to use for holding staging. That's where they're starting to put the vehicles now.