Elon Musk: Tesla Has “A Lot of Work To Do”

JAN 13 2014 BY ERIC LOVEDAY 34

Tesla Motors has a lot on its schedule for 2014.

Elon Musk Celebrates

Elon Musk Celebrates

There’s the Model S production ramp up.

The Supercharger rollout.

The Model X launch.

And so on…

In an exclusive interview with Automotive News, Tesla CEO Elon Musk admitted “We have a lot of work to do.”

Automotive News then says that Tesla will have to accomplish all of the following in the build up to the arrival of Gen III:

  • Convince mainstream shoppers to trust electric-car technology.
  • Finance a vehicle platform housing several variants.
  • Expand its sales and service capacity vastly.
  • Scale up its manufacturing output by a factor of 20.

We think that equates to a “lot of work.”  The question now is: Can Tesla do it?

Source: Automotive News

Categories: Tesla

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34 Comments on "Elon Musk: Tesla Has “A Lot of Work To Do”"

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They will do it

+1

700 000 cars production rate by 2019… I think that it is doable.

I hope they can do it. I think they can, I think they can……..

No pressure Elon… it’s just our future quality of life riding on your shoulders… no pressure though 🙂

Hmmm, it’s almost like all of these problems could be solved by partnerning with a major auto company. Trust/financing/expansion of sales & service/manufacturing

Personally, I hope they never partner with a major auto company. The current players are no where near as invested in EVs as Tesla. All Tesla needs is to stay focused and plow the vast majority of the money back into building out the company’s lineup of products and the Supercharger network.

+1

Several electric streetcar companies tried partnering with GM and standard oil and it didn’t work out to well for them. As of now I still think Tesla is providing more leadership in futuristic fueled cars then everyone else combined.

They do have partnerships with both Daimler and Toyota.

I’m suggesting something much more substantial.

@kdawg What you mean with more substantial ?

51% ownership. (And that doesn’t mean said company can’t still let Tesla do it’s own thing. They (Tesla) would just have a lot more support/resources)

Daimler a winner deal, Toyota not sure, they are not really into EVs, Toyota bet is for Hydrogen. Tesla has manage to build a luxury brand and been part of Toyota will be the opposite.

Toyota’s backup plan may be to purchase Tesla. No point doing their own BEV R&D if they can just scoop up Tesla and make it another vehicle line.

+1

This has been discussed and it would probably be a steeper uphill battle if partnering with a major auto company. It will go faster and smoother if they do it themselves.
And the brand would probably lose a lot of faith if being part of something that has been useless for so long.

Faster is debatable. Kinda hard to hit their goals w/out help. Not saying it’s impossible, but I could see dates slipping.

Regarding faith in the product, many people will avoid Tesla because they are a no-name/newcomer to them, regardless of the product. They have heard of or currently own the major auto-brands. Knowing your product is backed by major auto company is confidence Tesla can’t buy. Continuous EV failures like Fisker, or many other ICE car companies that have come and gone, create a large hurdle, for any new car company.

Meh. Tesla has been hiring the best employees away from the other car makers and other tech companies such as Apple.

No reason to buy a big ol’ tub full of dirty bathwater just to get the baby.

Them being a fully independent electric car company is what a lot of people like about it. Also if say they build and sell 70,000 electric pick up trucks they don’t have to worry about the people and part makers selling and building the gas cars complaining that they are taking sales away from them.

It’s like Elon said about car dealerships that they have a vested personal dislike of EV’s.

There have been doubters all along, they were wrong. Then Elon started a private space program in his spare time(SpaceX). If this guy says it will happen it will.

Currently Elon Musk is the only man with access to a Moon Rocket while a lot of governments and officials don’t and in a lot of cases the old heavily lift rockets from the 1970’s where scraped and put into museums ages ago. Elon Musk has done more for the space program in the last five years then they did in the last 25 years.

Tesla may be able to accomplish it, but it will not be able to accomplish it at the RATE they have projected without partnering with a major manufacturer.

I wish them them best, but the reality is they don’t have enough batteries, they don’t have enough car manufacturing plants, and they don’t have enough employees with automotive production experience. All of this requires plant construction; supply chain management; employee acquisition and training; and time.

Time is the only thing that Tesla can compromise on if it intends to proceed without an automotive manufacturing partner.

+1 Not sure where “factor of 20” comes from, on output.

If building out your own charger network and sales model was on a prediction nobody else was going to compete, than Tesla hit the bullseye. And if short battery supply is the surprise, another hole waiting to be plunged into industry armor is the luxury REx.

If not them, than who?

Not sure I really agree with that–they are only using a fraction of the capacity of the current plant, which if I remember correctly, can handle 500K vehicles per year at full tilt–and that was using GM’s manufacturing methodology–I would guess Tesla could wring out additional efficiency and productivity. I also believe they have the battery supply thing handled based on the analysis shown on this website. They have already shown they have a handle on supply chain and they have a mostly vertically integrated model which helps on that front. If anything, these kinds of volumes will help as their suppliers will be taking them much more seriously.

I would agree that one of their biggest challenges is going to be ramping up workers who are properly trained in the “Tesla Way”. Because the X is essentially built on the S platform, I think that will help smooth that learning curve, but is it a risk factor.

O

Dr. Kenneth Noisewater

I think in the end they’ll partner with a national car sales company like Penske or AutoNation and have very strict franchising rules, in exchange for nationwide trade-ins. Strict, as in “we train all sales personnel, no sales below MSRP, look & feel of dealerships, no conjoined/multibrand dealers, no branding other than ‘Tesla of $PLACE’, SuperCharging for all Teslas at all dealerships and service centers”.

Hmmm…kinda makes sense. Or maybe a store-within-a-store concept like Apple does with Best Buy, so you access the physical footprint without the brand dilution.

O

Dr. — It would be illegal for Tesla to impose many of those franchise rules, especially the one saying no sales below MSRP. California in particular (and many other states) consider franchisor minimum resale prices to be per se illegal. Even at the federal level, Tesla would be required to show that price fixing between competing franchisees would somehow increase competition in the market place, and Tesla would need to be able to affirmatively demonstrate that their pricing rules were of a benefit to customers. That would be a tough haul. Requirements on banning the sale of competitor’s cars (no conjoined/multibrand dealers) would also face state automobile franchise law challenges, as it is illegal in many states for a franchisor to mandate that dealerships only sell their car, and not cars from other competing car makers. It would also ruin Tesla’s argument they have successfully argued in multiple states that automobile franchise laws do not apply to Tesla because they do not have any franchises anywhere. All those cases that Tesla won using this argument would instantly become meaningless, and the rulings would no longer apply and would force Tesla out of the business of selling direct to customers. ———-… Read more »

Tesla’s current $18 billion market cap suggests investors have amazing confidence in a wildly successful execution of Elon Musk’s to do list.

Or enough confidence it will go up enough for them to make some $. Personally, I think the stock market is fickle. People who actually purchased Tesla’s are the ones with confidence. Yes, there is some intersection, but there’s a lot of Tesla investors who have no intent of ever buying a Tesla car.

There are those of us that purchased the stock because we couldn’t afford the car 😉 I am sure that is a vast minority though.

Just need that stock price to quadruple again, like last year, then maybe I could be driving one.

Josh, TSLA stocks already has a number of future successes already priced into it. I wouldn’t expect much growth until more of them actually come to fruition. I would tend to expect more volatility like we’ve seen over the last 6 months until Tesla has more models ready for production.

The one biggest reason why TSLA shares have stayed high is that TSLA filled the slot on the NASDAQ 100 index that ORCL created when ORCL moved to being traded on the NYSE. That caused all index funds that are based upon that index to be required to sell their ORCL shares and buy TSLA shares. Institutional investors remain the largest holders of TSLA shares.

So much blind faith in Tesla and Elon Musk. Let’s just hope he never offers you kool aid. Dr. Ken and kdawg seem to get it.

Some people don’t mind work. Others hate work. Having lots of work to do is what everyone has, some just never get around to it.