Tesla CEO: future hinges on increasing Model S production

That is the challenge of a start up business, especially an auto company. Every step is critical.
However, with the reviews the model S has been getting, and the fact that they have over 11000 reservations bodes well for them.
They do need to get that production up to speed, while maintaining a very high level of quality.

 

that headline is misleading. they've sold enough, but can they deliver?

 

Frankly if anybody can make this work it's him. He won't give up without using every last possible option, pulling all the strings and favors he can to see this work.

 

That's about 20 miles from the factory, it takes a while to move cars you know..

 

I hope they make it; what a sad loss if they go under. Wave goodbye to electric cars if they do.

 

I want them to make it too, if anyone can pull it off Elon Musk can. If he does manage top stay in business I will be absolutely amazed if he is able to keep producing the S for his initial price.

 

A real good start would be a car for under 40K out the door!

 

Not possible for a small start up company. You need to be able to sell at much higher levels of quantity to be able to make money.
This is part of the reason I am so disappointed in the large automakers. They have the infrastructure in terms of production and R&D, but I'd precious little with it.

 

Isn't that their long term goal?
Build a six figure sports car to build reputation and for high profit margin.
Do a high end sedan.
Once the sedan is established, make a more affordable car.

I don't remember anything about a SUV from Tesla in the early days. When I first heard about it I thought it meant a delay for the affordable car. But to grow market share and the funds for the people car, they need a SUV or crossover.

 

I'm not sure if musk even knows. The likely out for tesla is to sell out and become part of a larger autogroup. It could do the design and the high end, but lesser vehicles manufactured by its parent. Porsche had to go this way and become part of VW.

The X, is a way to do higher volume on the S platform. Its using the same battery pack/motors/chassis. Its harder to design but easier to build a bmw 5 type car (S) and make money than it is to build a cor0la.

 

Good Q, only time will tell on this one. Hopefully Musk will deliver.

DBCassidy

 

I hope so too! Especially since one of his deliveries next week should be to me!

 

What is your current bev?

 

Tesla Roadster. Definitely a fun car, but just as definitely not a 'me' car. I will be much happier in a more practical Sedan.

To tell you the truth, I am quite surprise the big auto companies hasn't beaten Tesla to the punch.

 

I thoght you had a roadster, which is why I was confused about you buying the Tesla S. Will you keep the Roadster after you get your S?

I think of the big auto companies like elephants. They move slowly, but you can't get in their way or they'll crush you. Most of them can not get anything into production fast. Lotus and Porsche design, now part of VW, can, but someone at a big company needs to decide to do it and pay them.

IMHO, PHEVs are where the market is going. Tesla got screwed over by fisker, and didn't want to deal with the big autos for engineering as they would have to do for parts. I'm glad the S got built. It shows what can be done.

I don't know if tesla wants to work with a major auto enough to get a higher production phev out in the field. Ford likely would be the easiest to work with, and ford could use teslas expertise on a combined platform. Tesla could contribute the battery/motor/management - with Ford adding engine and transmission and vendor relations. Ford with a smaller pack and less expensive car. I don't think it will happen. I'm sure tesla could successfully sell a quality midsize phev with 70 mile electric range.


Partnerships with Toyota or GM would slow down tesla too much, but toyota and mercedes may use Tesla like a Porsche design or lotus.

 

Tesla gave us a special lease deal where, as soon as we take delivery they will take the Roadster and stop the lease with no early end penalty. While we were very fortunate to be able to afford the lease, and then the purchase of the Model S, both were quite a stretch financially. The lease deal made it possible.

So, the Roadster is history once they delivery the Model S. I don't regret owning it for a second, and would do it again in the same circumstances. But the Model S is my dream car and has been exactly what I want out of a car.

I don't think Tesla will ever go the PHEV route. They considered it for a short period of time, but batched the idea.
The 3rd stage of their plan is a $30,000 economy EV. Targeted for 2015-2017. My personal guess is they will shoot multiple size packs again, with a base pack real world range of 120.

Tesla's partnership with Diamler saved its life early on. And the partnership with Toyota has been immensely helpful. I hope both companies get as much out of the association.

 

Nice. I wondered how many people chose the Roadster just for its battery pack

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I hope they can pull it off, but that is a difficult price point. I would say the odds are against them.

They both get vehicles to get customer feedback on, much earlier than they could on their own. To tesla it is a lot of money. To mercedes it was historic, as they borrowed the money to invest in tesla. But for toyota it was a small drop in the bucket.