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The benefits of vertical integration

Discussion in 'Reserving, Ordering, Production, Delivery' started by Michael Russo, Dec 18, 2016.

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  1. Michael Russo

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  2. TrevP

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    Elon has talked about it a lot from Tesla's perspective. It's something he learned while building SpaceX and applied to Tesla, especially during the Model X delays.

    With Model 3 he's even gone so far as to publicly leak the July 1 2017 cutoff date so that suppliers understand very clearly that the whole world is paying attention and if they want to be part of the program delays won't be tolerated. Sly move on his part.
     
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  3. Red Sage

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    Sometimes I read the comments under such articles and it seems the Tesla Naysayers can't manage to manufacturer a proper reason to be contrary.
     
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    The amount of misinformation about car manufacturing is astounding with the general public. As far as comments go with Tesla being late they can't seem to grasp the idea that Tesla has learned a lot about building cars since 2012 and the Model X program was an exercise they don't care to ever repeat again. When you learn what to do and not to do it affects how you design and plan for future projects. Model 3 is the first program that Tesla will be considered "grown up" as far as I'm concerned.

    So much is riding on this car, literally the whole company, that they know full well that the timeline to production is critical that they get it right and on time. Sure, I'm optimistic, but just because they were late with the Model X doesn't preclude they will always be late. Tesla has learned from mistakes, as everyone does.
     
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  5. Guy Weathersby

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    Good analysis, thanks. I think that the production difficulties of the Model X have probably been somewhat exaggerated. It did take over three years to resolve the issues, but for most of that time it was not a high priority. Tesla was too busy catching up with Model S production to produce the Model X anyway. From what little I know, Tesla has a great ability to focus on their top problem. I could easily be wrong, but I think that if Mr Musk and Tesla's top engineers had been dedicated to resolving Model X problems that it could have been in production much faster.

    Their really problem was that the Model S was designed to be produced in the thousands but sold in the 10s of thousands. The Model 3 was designed to be produced in the 100s of thousands, so I feel pretty confident that they will be able do it.

    My hope and expectation is that Tesla's real issue not how quickly they can produce the cars, but how quickly they can produce Gigafactories.
     
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