Most auto production lines produce nearly 500 cars per shift. Normal cycle times in an auto plant are about one minute. Here's a Mercedes production line.[1] That's a vehicle on a par with Tesla's products.
Something is terribly wrong in Fremont.
Something is terribly wrong in Fremont.
If Tesla is stuck on a battery bottleneck it's just as silly as if Mercedes were stuck on a sheet metal bottleneck. Yes, you need reliable component suppliers that can scale with you as you grow and provide the quality you need. If you don't have that, you have a big problem that vertical integration isn't going to solve.
The Mercedes E-class is monocoque, like almost all cars. They build the body/frame and then add the powertrain and wheels. Here's the body/frame and the powertrain/suspension coming together.[1] The powertrain and suspension aren't self-supporting; they're a collection of parts held in a fixture. That's very clear in the video of the parts coming together.
The Tesla Model S, though, is body on frame. If it can sit on its wheels without a body, as the Tesla Model S can, it's body-on-frame. Here's the Tesla Model S platform sitting on its wheels, with the powertrain installed.[2]
So is the Tesla Model 3.[3]
[1] https://youtu.be/lPKnM9vC6V0?t=395 [2] https://www.youtube.com/watch?v=l8WUIkD7xxI [3] https://jalopnik.com/why-tesla-needs-to-sell-the-model-3-wit...
If you want to compete in a market, you got to play at the speed/quality/prices of the market -- there is no slack given for being new.
In the end, unless they get profitable, if they burn their stash, they're toast.
Their real risk is if the Model 3's reliability is bad or they need a recall thus reducing their profits significantly.
"The truth is the Model 3 costs $40,000 if you want a standard version with autopilot (an extra $5,000) in black with no other options. If you want a different color, add $1,000. And if you want a longer range ($9,000) to get over 300 miles per charge instead of 220, well now we’re at $50,000. $50,000 for a midrange car."[1]
[1] https://www.theverge.com/2017/7/31/16069960/tesla-model-3-no...
"Enhanced Autopilot adds these new capabilities to the Tesla Autopilot driving experience. Your Tesla will match speed to traffic conditions, keep within a lane, automatically change lanes without requiring driver input, transition from one freeway to another, exit the freeway when your destination is near, self-park when near a parking spot and be summoned to and from your garage."
You can get adaptive cruse control for more reasonable costs, but lane changing takes a lot more awareness around the car.