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Old 01-22-2019, 02:05 PM
Crash Crash is offline
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Originally Posted by paranoidgarliclover View Post
The thing is that what you've written above doesn't quite address the thrust of what Musk wrote.... which was that the company doesn't know if can be profitable w/ a $35000 car. So the question isn't so much when the cheaper 3 will come but what will happen if it sells in large quantities. Colin Chapman, I think, always warned about chasing volume w/ a cheaper car.... There's a reason why all makes try to move their cars upward; it's b/c the profit margins are higher.

As for the bugs being in the initial cars.... The S just fell off of CR's recommended list for a drop in reliability, so I don't think it was just an initial thing.

As for Tesla getting more attention than other cars.... Yes, that's probably partially true. But that's what Mercedes said back in the mid 1990s, when it's reliability ratings fell off a cliff. It said that its buyers were more picky than buyers of cheaper cars. And, as someone who had both Mercedes and cheaper car at the same time, I can assure that MBs reliability (and even perceived quality) stunk to high hell during the mid 1990s into the early 2000s. I'd actually argue that buyers of cheaper cars are more picky b/c they're spending more of their discretionary income on the car and have more at stake.
Here is a quote from the letter sent to employees:
Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months. Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture the standard range (220 mile), standard interior Model 3 at $35k and still be a viable company. There isn't any other way

They never say Tesla won't be able to do it, they only say if they don't make the cuts, they won't be able to make the $35K version to be sustainable from a profitability perspective.

This said - we don't know what the $35K version will offer for features / etc. If you go order a Tesla now, any other paint colour beyond black costs extra. So, unless you're ordering a bare bones version, that is black, you won't be getting a $35K brand new Tesla. This strategy is pretty common in the auto industry; but Tesla has gotten so much buzz from it - I think it's going to bite them in the rear...hence, I don't think they should have lead w the $35K version in their unveiling. I REALLY think it's going to bite them in the rear when they announce / show Model Y (likely March) and they still haven't produced the $35K version...Had they had said $45K Model 3, they would have done much better from a PR perspective, been able to announce Model Y in March - and used that as an opportunity to say 'oh, by the way, starting in 3 months, a $35K version of Model 3 will be available. That would have delivered a MUCH better outcome for them

Can you send the link for the CR report showing that Model S fell off? I just picked up this years CR and it didn't show that...I'm a Canuck, so maybe it's different?? Doubtful - but I am curious.

Specific to Mercedes - I wasn't talking about reliability; I was talking about QC for the car (panel gaps / etc). A buddy of mine bought a BMW (brand new) and I was stunned by the poor production quality of that (gaps, poor fit and finish on the inside / etc)...point being that all cars have these issues - just some companies are are assumed to be fantastic - when they're really just average or good. A good example, most consumers think Kia is garbage - however their QC is arguably some of the best in the industry; ANY company should be looking at them as a gold standard for panel gaps (especially the newer Optima); conversely, Toyota QC is just average IMO.

Ultimately we all have our biases. I am obviously biased towards Tesla - and (as might have been picked up at times) can not stand Nissan. The good thing is that we can discuss these opinions in a forum like this :)
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