Why I won't buy a Tesla Model 3

APRIL FOOLS’ DAY
Tesla’s Model 3 Could Destroy Elon Musk’s Company
EDWARD NIEDERMEYER
04.01.164:54 AM ET

Wow, written by Edward Niedermeyer AND published on April Fools Day....

 

Ah, so by "almost went broke last year" you meant "had less than 1 Billion dollars in cash reserves at some point last year"?

Well, if that is your definition of going broke, you are absolutely correct.

 

True I saw that, I still would like this option.

 

Just acknowledging your definition of "broke".
Excuse me, I have to go sell some stuff as I am apparently "broke'

 

What's yours?

The article talks about Tesla spending all its money, but doesn't ask what they are spending it on.
Is it whores and blow, or launching one new car model, developing another, and building the Gigafactory?

 

And on that same subject, here's Tesla's latest blunt message about production woes for the X model:

Tesla Delivers 14,820 Vehicles in Q1 2016; On Track for Full-Year Delivery Guidance (NASDAQ:TSLA)

"Q1 deliveries consisted of 12,420 Model S vehicles and 2,400 Model X vehicles. Q1 deliveries were almost 50% more than Q1 last year and Tesla remains on track to deliver 80,000 to 90,000 new vehicles in 2016.

The Q1 delivery count was impacted by severe Model X supplier parts shortages in January and February that lasted much longer than initially expected. Once these issues were resolved, production and delivery rates improved dramatically. By the last full week of March, the build rate rose to 750 Model X vehicles per week, however many of these vehicles were built too late to be delivered to their owners before end of quarter.

The root causes of the parts shortages were: Tesla's hubris in adding far too much new technology to the Model X in version 1, insufficient supplier capability validation, and Tesla not having broad enough internal capability to manufacture the parts in-house. The parts in question were only half a dozen out of more than 8,000 unique parts, nonetheless missing even one part means a car cannot be delivered. Tesla is addressing all three root causes to ensure that these mistakes are not repeated with the Model 3 launch.

Because production is now on plan and Q1 orders exceeded Q1 deliveries by a wide margin, with Q1 Model S orders being 45% higher than Q1 last year, Tesla reaffirms its full-year delivery guidance. These additional details are being provided because of the unusual circumstances of this quarter and will not typically be provided in quarterly delivery releases going forward. As always, more detailed information will be contained in Tesla's quarterly shareholder letter.

There may be small changes to the Q1 delivery count (usually well under 1%), as Tesla only counts a delivery if it is transferred to the end customer and all paperwork is correct.

Tesla vehicle deliveries represent only one measure of the company's financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles."

 

Looks like good news overall.
Many, who were following Model X production, already knew about the delay to the ramp up of the Model X.
With many more produced than delivered, this will give 2nd quarter a nice push and help them get back on track.

45% more Model S sales in the quarter was also very nice to see.

 

They know no such thing. Don't let that stop you from FUDding up the place. You doubters are a dime a dozen.

 

Realize that your bankruptcy comment where based upon April's fool vaporware

 

we already know that, and many other EV purchases from other manufacturers also, including Toyota, BMW, Nissan and other players

The author of this article looks like a teenager, what kind of reputation he has?and the sources of his claims?????
Please, follow reputable automotive, business writers.

 

There is another side of the coin. Tesla now has an unmistakeable indicator of what future supercharger plans and support infrastructure is needed (stores, maintenance manning, etc.). Right now Tesla acts if their customers have a memory, while other manufactures often act if customers only have a wallet. Between now and production, Tesla has to carefully pick what official promises it wants to make and then staff and equip all the facilities necessary to keep these promises. Having free supercharger access backfires when 10 Model 3s are in front of every charging jack.

There is going to be some fallout (10-30%?) of the depositors changing their mind regardless of what Tesla does or does not do. I'm already planning on the loud negative press inevitable resulting when this quite predictable fallout happens. There are quite a few speculators in that big number of depositors.

The other big thing Tesla might also need to plan for is a big jump in gas prices in the next two years. Something like that could easily double the number of deposits. They now have to make it clear that a huge backlog must be served before promising delivery of a second surge caused by gas price fluctuations.

 

and also the impact bolt will have, and how aggressive gm decides to become.

 

That's right, because we can afford a 3rd and 4th car in the driveway and enjoy all of them

 

^I can't!

And to the Tesla hater....the Volt is a hybrid of sorts. It also might come as a shock, but you're not the only Prius owner here. I'm equally sick of ICEs of all flavors. Oh yea, you can find just as many anecdotes where Tesla owners have dumped their ICE vehicles.