Tesla Shares Drop on Reducing Model S, X Production Hours | Hacker News Reader

Tesla Shares Drop on Reducing Model S, X Production Hours

bloomberg.com

46 pointschollida122 comments

Not great work from Bloomberg, there simply isn't much new in this report. We already knew they aren't producing S/X 75 versions anymore, perhaps to both simplify production and to differentiate top spec-d M3 vs. S/X lower spec'd options. Now we hear they are focusing a higher percentage of their production hours on M3, though this Bloomberg report is vague on the details of those hour productions.

I agree, the removal of the 75kWh S/X is probably to somewhat offset the margin hit they are taking by offering the mid-range M3. They seem to be working down market but each step comes with lower margins so they have to go slow to maintain some profit.

Like many, I pass the Tesla plant on my way to work. When Model 3 shipping was underway, their output lot was full and car carriers were constantly loading.

I noticed a change (which may have been there awhile without me noticing) a few days ago that the output lot is nearly empty and only a few carriers were loading. There's also a ton of empty carriers sitting idle on a nearby street.

Maybe Tesla now has shipping under control and efficient. Or maybe they've finally worked through the Model 3 backlog. Or maybe the showrooms have too much backlog of deliveries and they can't take any more. Or any number of things.

It's odd.

It might be because they just sent two shiploads of cars to the EU, several thousand cars each, so that might affect the output lot and the carriers since they only had to go to SF to be loaded on to the ships.

They did a massive sale push at the end of the year due to expiration of federal tax credit. A lot of people who considered ordering, ordered back then, so naturally now there should be a cool off.

I have a place right next to the factory road outlet for about 3 years and have been counting output.

Since then I've also worked at an office park nearby where Tesla booked up the empty park next to us to use for holding staging. That's where they're starting to put the vehicles now.

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