The model 3 it's Tesla’s affordable but capable mass-market electric car. It was supposed to be the automotive industry that is equivalent to an iPhone moment and the company's whole business plan hinges on its success. But as many of you know not all has gone according to plan the model 3 has been production hill according to Elon Musk. So what's the problem?
The main problem for Tesla is their inability to produce enough model 3. In July of 2017, Elon forecasted 5000 cars per week by December 2017 and this wasn't to be recently the production pipeline has been plagued with the problem which hindered the output. This isn't so great for your most critical product. So how low were the numbers? According to Tesla's shareholder report, there was an average of 830 cars per week in the first quarter of 2018 that's less than one-fifth of the goal. In February production was even halted for a week. The forecast had now been pushed to 5000 cars per week by Jun. The good news is things are starting to turn around. In April Tesla was making just Over 2000 model 3 per week and is on track to increase production. So for a wider perspective at this rate will translate to about 220,000 total Tesla’s produced and delivered in 2018 and thinking about it that's not too far off the 300,000 cars sold by BMW in the US in 2017. But keep in mind BMW has much bigger Vehicle range than Tesla. The bad news is that when the Tesla Model 3 was announced an estimated 400,000 pre-order were initially made for the car and that's pretty cool because even if that number did drop it is unprecedented in the Auto Industry. No other manufacturers have had so many advanced vehicle orders but the bad part and the main question is how much longer will they wait. So what went wrong?
Ironically for such a technically advanced company excessive automation was what slow the whole production pipeline down. Musk has stated, “ Excessive automation at Tesla was a mistake to be precise my mistake humans are underrated.” A lot of people may say that Elon is overpromising and under-delivering, but I for one do respect his work ethic. On the plus side for Tesla is the earlier review of the Model 3 are glowing there is a customer satisfaction score of 93 % which is the highest score in Tesla's history, coupled with an infinite warranty for early adopters. It seems to like a lot of people might be happy with the car.
So looking at the big picture as you have already seen know Tesla's competition is rising. In fact, the Jaguar iPace is already in production and Prince Charles was spotted riding one into the commonwealth of Summit, to add to this Ferrari has just tested electric cars and Buick has just stepped into the game as well. As I have previously mentioned this is ultimately a good thing for all of us and Tesla has the advantage of a story and a strong brand image behind them.
It's the question of investors how much longer will They trust Tesla and it's risky just because you are first to do something doesn't mean you end up successful in the long run. I am not saying that Tesla is doing anything wrong but I would not like to see such a company single-handedly change a 100-year-old industry and fail. They have come this far and a lot of people would say that they deserve success for that. I am not alone here Tesla's stock has become a very unusual trading case. It's what analysts are calling a story stock there is a fascinating battle between those investors who love the story of Tesla and strongly aligned with Elon Musk's vision and there are those investors who seem miss forecasts and deadlines and a company burning through cash. So which image of the company is the true one only time will tell. Time and time again it seems like Elon and Tesla have a habit of pulling a rabbit out of a hat.
The main problem for Tesla is their inability to produce enough model 3. In July of 2017, Elon forecasted 5000 cars per week by December 2017 and this wasn't to be recently the production pipeline has been plagued with the problem which hindered the output. This isn't so great for your most critical product. So how low were the numbers? According to Tesla's shareholder report, there was an average of 830 cars per week in the first quarter of 2018 that's less than one-fifth of the goal. In February production was even halted for a week. The forecast had now been pushed to 5000 cars per week by Jun. The good news is things are starting to turn around. In April Tesla was making just Over 2000 model 3 per week and is on track to increase production. So for a wider perspective at this rate will translate to about 220,000 total Tesla’s produced and delivered in 2018 and thinking about it that's not too far off the 300,000 cars sold by BMW in the US in 2017. But keep in mind BMW has much bigger Vehicle range than Tesla. The bad news is that when the Tesla Model 3 was announced an estimated 400,000 pre-order were initially made for the car and that's pretty cool because even if that number did drop it is unprecedented in the Auto Industry. No other manufacturers have had so many advanced vehicle orders but the bad part and the main question is how much longer will they wait. So what went wrong?
Ironically for such a technically advanced company excessive automation was what slow the whole production pipeline down. Musk has stated, “ Excessive automation at Tesla was a mistake to be precise my mistake humans are underrated.” A lot of people may say that Elon is overpromising and under-delivering, but I for one do respect his work ethic. On the plus side for Tesla is the earlier review of the Model 3 are glowing there is a customer satisfaction score of 93 % which is the highest score in Tesla's history, coupled with an infinite warranty for early adopters. It seems to like a lot of people might be happy with the car.
So looking at the big picture as you have already seen know Tesla's competition is rising. In fact, the Jaguar iPace is already in production and Prince Charles was spotted riding one into the commonwealth of Summit, to add to this Ferrari has just tested electric cars and Buick has just stepped into the game as well. As I have previously mentioned this is ultimately a good thing for all of us and Tesla has the advantage of a story and a strong brand image behind them.
It's the question of investors how much longer will They trust Tesla and it's risky just because you are first to do something doesn't mean you end up successful in the long run. I am not saying that Tesla is doing anything wrong but I would not like to see such a company single-handedly change a 100-year-old industry and fail. They have come this far and a lot of people would say that they deserve success for that. I am not alone here Tesla's stock has become a very unusual trading case. It's what analysts are calling a story stock there is a fascinating battle between those investors who love the story of Tesla and strongly aligned with Elon Musk's vision and there are those investors who seem miss forecasts and deadlines and a company burning through cash. So which image of the company is the true one only time will tell. Time and time again it seems like Elon and Tesla have a habit of pulling a rabbit out of a hat.
If You Have Any Queries Then Feel Free To Ask Us Down In The Comment Section And Visit To The Science Thinkers Again. As Always Stay Curious And Thank You
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