Tesla Turning the Corner

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There were no advance orders for Model 3's. You must be thinking of the re fundable deposits establishing a place in line for customers to place order s once production was underway.

It's especially funny to talk about a "panic". Tesla is not a bank. Peopl e can't bring their cars back and ask for refunds. lol!

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None of that is overly significant to the company once they start earning a profit which is going to happen now that the Model 3 sales are up.

Rick C.

That is always possible, but the bailout won't be from the government. It will be from investors who believe the company is worth saving.

Rick C.

Only idiots would believe an article that uses the term "reportedly" so many times. That means you can't believe a word they are saying as it is all based on BS. But then Larkin is very much at ease with BS.

Rick C.

I'll try that on Digikey, getting a discount on stuff that we bought and paid for a year ago.

--

John Larkin         Highland Technology, Inc 
picosecond timing   precision measurement  

jlarkin att highlandtechnology dott com 
http://www.highlandtechnology.com

I wish you luck. Digikey isn't run by idiots, unlike some companies. It's going to be interesting to see how Tesla does with this one.

I predict that the Model-3 is going to get them tied up in multiple class-action liability suits, too. It's designed to be a lawyer magnet.

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ct, it's common for car companies to press suppliers for price concessions in a never-ending tug-of-war."

You live in a very tiny world compared to all the industries out there. Ob viously you are a bit jealous, but I believe this is indeed not so unusual in a world where orders are not in the thousands of dollars, but in the ten s and hundreds of millions. I remember asking someone at Digikey why they price components to four or five decimal places (hundreths of a cent) and i t was because it matters when you buy many millions.

Lol, I recall when you expressed irritation that Xilinx wasn't catering to your needs as if you were one of their major accounts.

Why do you always impose your way of thinking on everyone else when you kno w nothing of what they do?

Rick C.

You're full of shit. This is *NOT* the way business is done. One doesn't ask for kickbacks from last year. Sure, it's common to demand price cuts for current and future production but *not* previous years'

What a moron!

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act, it's common for car companies to press suppliers for price concessions in a never-ending tug-of-war."

I recall in college an aged professor was teaching a lecture for some hundr eds of students in front of an enormous chalk board with motorized sections . Normally he would fill one board with equations and such, then run it up and write on the next. One day the class didn't settle down when he start ed his lecture and he got agitated. So he picked up an eraser and wrote wi th one hand and erased with the other. Finally some wise guy yelled to him , "Hey dude, wanna clue us into what you're doing down there?"

So do you want to clue us into what you are talking about?

Rick C.

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fact, it's common for car companies to press suppliers for price concessio ns in a never-ending tug-of-war."

Obviously you are a bit jealous, but I believe this is indeed not so unusu al in a world where orders are not in the thousands of dollars, but in the tens and hundreds of millions. I remember asking someone at Digikey why th ey price components to four or five decimal places (hundreths of a cent) an d it was because it matters when you buy many millions.

A friend works in the food service industry and they do very similar things all the time. They often do deals where some portion of *previous* orders are refunded based on future orders or meeting a goal or carrying new prod ucts. If you think about it, this is actually a safer way to give incentiv es. The amount paid out is based on a quantity already known rather than a number that hasn't been set yet.

to your needs as if you were one of their major accounts.

know nothing of what they do?

Yes, I guess there are times when you can be.

Rick C.

More bullshit. "They often do deals". Idiot!

You are, always, but lefties always project their inadequacies.

Anything that's in the possession of a company that goes bankrupt suddenly belongs to the receiver, whether it's been paid for or not. Same goes for those 'refundable' deposits. If you get caught up in one of those, you're the Nth creditor in line for the company's assets. Blech.

Musk is entertaining, so I have no reason to want him to fail. It would be nice to get back all that taxpayer money, but it looks less and less likely that we will. Oh, well.

Cheers

Phil Hobbs

--
Dr Philip C D Hobbs 
Principal Consultant 
ElectroOptical Innovations LLC / Hobbs ElectroOptics 
Optics, Electro-optics, Photonics, Analog Electronics 
Briarcliff Manor NY 10510 

http://electrooptical.net 
http://hobbs-eo.com

On Wednesday, July 25, 2018 at 3:37:04 PM UTC-7, snipped-for-privacy@gmail.com wr ote:

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fact, it's common for car companies to press suppliers for price concession s in a never-ending tug-of-war."

GM is a point of reference, similar to most other auto maker. For instance , Tesla's labor cost per revenue is 3 times that of most auto makers. Frem ont is not exactly a cheap place to build and store cars, even temporary. Parts and materials are shipping in and out of the most expensive SF bay ar ea. Tesla needs to sell 1000 cars per day to be profitable, but building 1

000 cars per day may or may not be profitable. It's too early to say that they have turned the corner. It's just a step in the direction of turning the corner.

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e refundable deposits establishing a place in line for customers to place o rders once production was underway.

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Well, yeah, of course. But many of the people who put down deposits are be ing asked right now to place orders. If they don't at some point the reser vation is canceled and the money refunded. Even if Tesla does fail, it won 't be long after all the deposits are either used to buy cars or refunded. Heck, that is likely to be by the middle of 2019. The company can run sol ely on inertia until then.

You think the people who bought cars should have to pay back the tax incent ives if the company fails??? I don't follow your reasoning. I didn't thin k the government ever expected to see any of that money returned???

Rick C.

On Wednesday, July 25, 2018 at 9:52:17 PM UTC-4, snipped-for-privacy@gmail.com wrote :

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ce, Tesla's labor cost per revenue is 3 times that of most auto makers. Fr emont is not exactly a cheap place to build and store cars, even temporary. Parts and materials are shipping in and out of the most expensive SF bay area. Tesla needs to sell 1000 cars per day to be profitable, but building 1000 cars per day may or may not be profitable. It's too early to say tha t they have turned the corner. It's just a step in the direction of turnin g the corner.

You are spouting numbers for a company that has been pouring money into dev elopment of a car, construction of the fab line and all the gearing up to s upport the new, electric vehicles. In other words, they have been not just building cars, but building the company that builds cars. Do you really t hing that isn't going to have lopsided numbers compared to a monolith like GM???

I find it funny that you think being in the bay area is a major impediment to becoming profitable when Tesla is using the very factory that General Mo tors and Toyota operated for 26 years building economy cars.

Even at $55,000 per car they are selling as fast as they can build them. T esla is predicting profitability in Q3. Even if that doesn't come until Q4 , I'm fine with that. There is zero reason to think they are going under o r will not be able to make a profit. Then they are still selling $100,000+ model X and S and no small number of them. Look at the stats for all plug

-in electric cars. Tesla has the top sales by a HUGE margin and three of t he top four spots. While they got off to a slow start this year, they deli vered over 6,000 model 3s and over 11,000 total, over four times as many as any other maker. Notice also that battery electric cars are outselling pl ug-in hybrid electric cars by a wide margin.

Rick C.

On Wednesday, July 25, 2018 at 8:16:51 PM UTC-7, snipped-for-privacy@gmail.com wr ote:

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In fact, it's common for car companies to press suppliers for price conces sions in a never-ending tug-of-war."

ance, Tesla's labor cost per revenue is 3 times that of most auto makers. Fremont is not exactly a cheap place to build and store cars, even temporar y. Parts and materials are shipping in and out of the most expensive SF ba y area. Tesla needs to sell 1000 cars per day to be profitable, but buildi ng 1000 cars per day may or may not be profitable. It's too early to say t hat they have turned the corner. It's just a step in the direction of turn ing the corner.

evelopment of a car, construction of the fab line and all the gearing up to support the new, electric vehicles. In other words, they have been not ju st building cars, but building the company that builds cars. Do you really thing that isn't going to have lopsided numbers compared to a monolith lik e GM???

Same for many new brands of auto, but they don't lose money for 15 years.

t to becoming profitable when Tesla is using the very factory that General Motors and Toyota operated for 26 years building economy cars.

And we all know what happened to that company. They moved out of planet Ea rth in 2010.

"Results at Saturn, however, were more doubtful than positive. According to The Wall Street Journal, the project was too ambitious, as "everything at Saturn is new: the car, the plant, the workforce, the dealer network and th e manufacturing process. Not even Toyota, a highly successful and experienc ed automaker, tackles more than two new items on any single project." While Saturn cars proved very popular with buyers,[citation needed] actual sales never met the optimistic projected targets, in part because of the early 1

990s recession. It also proved cannibalistic as 41% of Saturn buyers alread y owned a GM car. Its separation from the rest of its GM parent, plus the f act that it drained $5 billion from other car projects, stirred discontent within GM's other divisions. Also, Saturn opened at considerably higher cos t than the Japanese transplants (factories that Japanese automakers establi shed in the United States)."

Tesla is predicting profitability in Q3. Even if that doesn't come until Q4, I'm fine with that. There is zero reason to think they are going under or will not be able to make a profit. Then they are still selling $100,00

0+ model X and S and no small number of them. Look at the stats for all pl ug-in electric cars. Tesla has the top sales by a HUGE margin and three of the top four spots. While they got off to a slow start this year, they de livered over 6,000 model 3s and over 11,000 total, over four times as many as any other maker. Notice also that battery electric cars are outselling plug-in hybrid electric cars by a wide margin.

Tesla will be in technical default if they don't jack up stock price or rep ay $1B to bonds in next few months. The company might still be around, but stocks will be restructured.

The problem isn't that Conservatives dislike Elon Musk which is a perfectly natural thing to do it's that they dislike him for the wrong reasons...

Which isn't intrinsically that the government gave a company taxpayer money to fund EV development, it's that they gave it to an abusive and exploitative anti-union hustler and egomaniac who treats his employees like crap and doesn't really seem to know how to manage a company that well.

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stance, Tesla's labor cost per revenue is 3 times that of most auto makers. Fremont is not exactly a cheap place to build and store cars, even tempor ary. Parts and materials are shipping in and out of the most expensive SF bay area. Tesla needs to sell 1000 cars per day to be profitable, but buil ding 1000 cars per day may or may not be profitable. It's too early to say that they have turned the corner. It's just a step in the direction of tu rning the corner.

development of a car, construction of the fab line and all the gearing up to support the new, electric vehicles. In other words, they have been not just building cars, but building the company that builds cars. Do you real ly thing that isn't going to have lopsided numbers compared to a monolith l ike GM???

Which other brands of auto are startups???

ent to becoming profitable when Tesla is using the very factory that Genera l Motors and Toyota operated for 26 years building economy cars.

Earth in 2010.

to The Wall Street Journal, the project was too ambitious, as "everything a t Saturn is new: the car, the plant, the workforce, the dealer network and the manufacturing process. Not even Toyota, a highly successful and experie nced automaker, tackles more than two new items on any single project." Whi le Saturn cars proved very popular with buyers,[citation needed] actual sal es never met the optimistic projected targets, in part because of the early 1990s recession. It also proved cannibalistic as 41% of Saturn buyers alre ady owned a GM car. Its separation from the rest of its GM parent, plus the fact that it drained $5 billion from other car projects, stirred disconten t within GM's other divisions. Also, Saturn opened at considerably higher c ost than the Japanese transplants (factories that Japanese automakers estab lished in the United States)."

Uh... wrong car...

Even if the car was new, there was nothing new about Saturn other than that they tried to build a *good* car. It was still a GM car which GM eventual ly destroyed.

. Tesla is predicting profitability in Q3. Even if that doesn't come unti l Q4, I'm fine with that. There is zero reason to think they are going und er or will not be able to make a profit. Then they are still selling $100,

000+ model X and S and no small number of them. Look at the stats for all plug-in electric cars. Tesla has the top sales by a HUGE margin and three of the top four spots. While they got off to a slow start this year, they delivered over 6,000 model 3s and over 11,000 total, over four times as man y as any other maker. Notice also that battery electric cars are outsellin g plug-in hybrid electric cars by a wide margin.

epay $1B to bonds in next few months. The company might still be around, b ut stocks will be restructured.

Of course they will be around. What you are talking about is how stock hol ders get paid off. It has very little to do with the company making and se lling cars. It's just not that much money.

Rick C.

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Sounds like a lot of conservatives... why wouldn't they like him? Oh, yeah , he actually is doing a great job of starting the first successful new aut o company in the US in how many years???

Rick C.