Here come the local China sales: Tesla starts selling made-in-China Model 3 with Autopilot for ~$50,000 Tesla has updated the Model 3 online configurator in China to start selling the made-in-China Model 3 Standard Range Plus with Autopilot for ~$50,000. There’s been a lot of talk about when Tesla is actually going to start Model 3 production at Gigafctory 3 in Shanghai.
Production started Wednesday (our date). We are seeing cars coming off an assembly line. It's not the kind of production that will affect Tesla's production statistics, though. They are building cars with seats and battery packs from GF1. I'm really surprised they intend to build their own seats in Asia, as they do in North America. I can see value in building them here but China must have a bunch of suppliers that build seats to spec for low cost. It is probably about quality control. GF3 won't be building battery packs until mid next year. Tesla desperately, desperately, needs to ramp cell capacity at GF1. Global operations depend on it. I'm sure they are taking every cell LG will sell them but they need Hibar to shift into hi gear and get new cylindrical cell production online. By the way, I applaud them for not continuing to pump money into the Panasonic partnership that is manufacturing cells at 70% efficiency.
On Wednesday, Tesla was at $250. Now, it's at $330. Two days later, it's up fully one third. I'm not the sharpest on market dynamics but I see no change in Tesla fundamentals in that time. Would anyone care to share their opinion with regard to why the market is swinging so wildly? I know we are seeing shorts covering. Is that the primary upward pressure? We are seeing very high trading volume. Perhaps everyone just caught up to the fact the media is largely lying to us, all this time? Kind of a group revelation? I don't know where Tesla should be valued. They have potential to be very, very high but they are also just emerging from being an automotive startup so, while risk is far, far lower than it used to be, plenty of risk remains. I think I understand the valuation. Anything between $200~400 seems somewhat reasonable to me but why the volatility?
I was happy yesterday when my 71 contracts $310 10/25 call was purchased at .35 yesterday and sold at .77. I was even happier when I saw it dropped to as low as .16 this morning because I thought I was right for selling yesterday at .77. I believe the high today was $20, but I sold it at .77..............
Wont be the first time they’re lying to us Volatility is literally everywhere. Look at just how crazy amazon performed a minute after the bell rang on their earning report day... until it opened the following morning. also PYPL.. went for a dive hours before its earning report surged it up. volatility is here to stay and I can almost guarantee tsla prices will drop like a rock as soon as someone creates “news” pertaining to its product. this time around tho, I almost can’t wait for it to happen
Forgive me for being contradictory but I don't get a lot of 35% swings in 36 hours with my other stocks. I count on volatility but I look at a 12% swing over a month to be wild. There are several companies that I would buy like crazy on much smaller swings.
GF3 The roof structure of the battery plant is 90% done, including purlins, and 75% painted. I expect roof panels will begin to be fastened by early next week. Whatever is happening by the substation, it's progressing very well. Perhaps more interesting, there seems to be two major banks of SuperChargers: One appears to be for internal use by battery plant. One appears to be for public use outside the perimeter road. The public charger is of a new design. GF1 Someone at Teslarati noticed they have added several more solar panels to the roof of GF1. This could be them testing some new panels or there could be more panels to come. I suspect the latter. I wonder if the solar install at GF1 is related to new battery production lines. Cell formation is a huge energy consumer. Perhaps they are trying to mitigate power consumption of the new Hibar lines. If this is the case, they might add a new solar array each time they add a new line. Nobody cares about power consumption costs, as a car pack can be charged for a few dollars at wholesale prices. This is only relevant if it's either a new product or an indicator of new production capacity. Back to GF3.... Far more significant than battery plant progress is the endless stream of tractor trailers unloading into the factory. Externally, it has the appearance of a productive factory.
There was cool article the other day about guy with a Tesla that lives in an apartment with no way to charge it at home. He only charges it at the super chargers under the free charging program. With 100,000 miles on his car, he estimates he saved $7000 in operating costs!
I watched some video on Friday in which nearly every loading bay was occupied with a heavy haul trailer. The place was buzzing like Charlie Sheen on a Friday night. This afternoon, I watched some gorilla style video from a Chinese man who drove buy and just pointed the camera out his window. There wasn't a single trailer and the entire site was dead, like it was abandon. There were a few cranes at rest. I know the video is current because the graphics they painted on the building last week are clear. I'm not sure what to make of this. Very odd.
I believe what's happening is the market has evolved. The market honestly no longer cares what a company is worth, because people are just trying to make money quick. BIG money is manipulating the market and getting away with it more and more. Access and information is available to small fish like us more readily, trading fees have gone down. Scam artists are all over the place tricking people into get rich schemes. The younger generation is trying to get rich quick because they have fears about not being able to retire and "the slow steady grind" that investing used to be is no longer something that appeals to them. That return they believe would not be enough to retire in their 50's like has been possible in the past for a father of 4 who worked at a manufacturing facility. Times have changed, the market has changed. Just my opinion.
I know places like the mall in the city I live have multiple charging stations. Not sure if there's a cost, but I believe it's free.
I just don't like the word "free". Didn't learn much in college but one thing that stuck with me is that there is no free lunch. Let's just agree the costs are passed on to someone else.
Those are destination chargers. In this case, the chargers are either provided at a very low cost or, in the case of some strategic locations, given free to the site owner. The site owner pays for the power and either charges for charging provides it as a free service. I believe giving destination charging hardware to property owners has been either completely or mostly phased out but don't quote me on that. In the case of superchargers, Tesla pays for the power. Tesla bills for charging or provides it for free to some customers. Early Tesla customers got free supercharging for life. Yesterday, a 12 year old neighbor shoveled my driveway for free. Perhaps Mr. Kelly would like to stop by and beat the crap out of the kid with his shovel. In my case, I like free stuff. A couple of years ago, we were at Lake Tahoe where they have the view obscured from the road with an epically long fence. If you want to see the lake, you have to pay to get in. Mr. Kelly, do you run the department of tourism at Lake Tahoe?
We offered. I have a hunch he would have taken the money, were it not for his parents direction to not. My wife is going to bomb their home with a couple of pumpkin loaves this afternoon. The house smells amazing, right now. Those loaves, I'm embarrassed to say, will be free.
On a more serious note, Elon has said that he would rather direct his advertising budget at the Tesla community, than traditional advertising infrastructure. For this reason, they offer rewards for referrals (one of which is free supercharging) and other free stuff to owners who encourage someone to buy a Tesla. I like the Tesla policy. Mr. Kelly, I make a point of reading your posts and I always enjoy having your perspective. Please have a nice day and thank you for sharing with us so freely.
Likewise, Tom. No doubt an entire thread could be devoted to the discussion of the word "free". To cut to the chase as to why I even brought it up is that as a Libertarian it irks me when the government steals my money in the form of taxes and uses it for a cause that I may or may not agree with. I have no qualms with Tesla, but do feel the free market should decide its fate without government interference. As I mentioned before in this thread Tesla cars are all over the place out here in LaLa Land. You have yourself a nice day too. Oh, and you can call me Emmett.
Thanks, Emmett. I've never made much comment on Tesla marketing, as I have zero expertise in the matter. Tesla does market, they just don't advertise. So far, their success has been epic as demand out-strips supply. I thought their approach would not scale to this point but it has so I just watch and learn. Watermark: Current price $314. [Edit: Current downward price pressure seems to hinge on warranty claims at 2.7% of total sales. This is above the industry average of 2.5%.]
