Tesla to build new plant in Mexico.

[DwightFrye]

Tesla's current stock valuation is very much affected by the global economy and recession. I can't think of any high value stock that has recovered to what it was in 2021 or 2022 although there may be a couple that come close.

Sure, time is a major issue in Tesla's recovery. But Tesla's competitors in the EV market still are posting pathetic financial numbers while Tesla continues to break previous records, and once the market starts roaring back Tesla is probably the most qualified to have rapid gains. Just as there were a lot of millionaires created among those who bought Tesla back in 2018 or 2019, even in very moderate quantities, there will again be millionaires created among those who bought Tesla at it's low point a few months ago.

Buying Ford at a little over $10 or GM at around $40 in the last few months when they were at 52 week lows ?
Pfffft. Good luck with that over the next few years.

 

[alarmguy]

.. and once the market starts roaring back Tesla is probably the most qualified to have rapid gains. Just as there were a lot of millionaires created among those who bought Tesla back in 2018 or 2019, even in very moderate quantities, there will again be millionaires created among those who bought Tesla at it's low point a few months ago.

But ... what about the poor soul that bought Tesla just over 1 year ago? Now living in a tent in CA? But maybe some day it will get back to where it was after it goes up another 90% from where it is now.

 

[JeffKeryk]

But ... what about the poor soul that bought Tesla just over 1 year ago? Now living in a tent in CA? But maybe some day it will get back to where it was after it goes up another 90% from where it is now.

Are you assuming they realized their loss by selling? Why would they do that unless they were otherwise broke?
No different that me not realizing my gain because I have not sold. I am in it for the long term, even though I could sell for more than a 100% gain.

The biggest TSLA losers are the short sellers. And, of course, people like me who bought the car instead of stock in 2018...

 

[97prizm]

I'd guess this plant is specifically being built for the model 2 (or whatever the recently announced model is).

With enormous pressure on pushing the price down cheaper labor makes a big deal and with no letup in sight from those trying to unionize existing plants its seems a cost control measure first and foremost.

Peter Zeihan remarked that at this stage if he had to chose between China and Mexico he'd pick Mexico.

Still this represents a tremendous loss for the states proper.

I'd like to know how on Earth they plan to build a cheaper car? The model 3 is bare as the Sahara desert and from recent info from Tesla still costs them 35k to manufacture one. A year ago his muskiness said no low cost vehicles were in the pipeline.

 

[Ws6]

I think this may be the one occasion where US customers clamber for the Mexican factory cars over the American one. literally every OCONUS Tesla factory is turning out better product than Fremont, although Austin is doing okay, neither are anything compared to the EU Tesla factory.

 

[Ws6]

I'd like to know how on Earth they plan to build a cheaper car? The model 3 is bare as the Sahara desert and from recent info from Tesla still costs them 35k to manufacture one. A year ago his muskiness said no low cost vehicles were in the pipeline.

He's limited by the battery pack and motors. The rest of the car is an afterthought, quite literally, as it was acquired by Elon some years back. The original Tesla was supposed to just re-use Lotus Elise body, as the Roadster. The EV aspect of it spawned from the failed company AC Propulsion. Elon took over from the original founders via financial prowess, and made Tesla his own, after voting off one of the co-founders, and the other leaving. Martin Eberhard and Marc Tarpenning were the original founders of Tesla, and dreamed up the Roadster (using an Elise was their plan). So you see, Elon inherited the EV tech, and of course had it improved upon some, but the car? They never had a clue. None of them did. So now we get a well designed vehicle, but the know-how of assembling it is horribly lacking, although lately has improved.

This is why I am anti-Tesla as regards to purchase. Their motors and battery tech is excellent, but the car it is stuffed into, while good on paper, and I don't have an issue with the aesthetics, is still, or at least all the ones I have looked at, well into 2nd rate kit-car territory.

 

[97prizm]

He's limited by the battery pack and motors. The rest of the car is an afterthought, quite literally, as it was acquired by Elon some years back. The original Tesla was supposed to just re-use Lotus Elise body, as the Roadster. The EV aspect of it spawned from the failed company AC Propulsion. Elon took over from the original founders via financial prowess, and made Tesla his own, after voting off one of the co-founders, and the other leaving. Martin Eberhard and Marc Tarpenning were the original founders of Tesla, and dreamed up the Roadster (using an Elise was their plan). So you see, Elon inherited the EV tech, and of course had it improved upon some, but the car? They never had a clue. None of them did. So now we get a well designed vehicle, but the know-how of assembling it is horribly lacking, although lately has improved.

This is why I am anti-Tesla as regards to purchase. Their motors and battery tech is excellent, but the car it is stuffed into, while good on paper, and I don't have an issue with the aesthetics, is still, or at least all the ones I have looked at, well into 2nd rate kit-car territory.

You also forget that Tesla constantly changes bolt patterns, and things that aren't really necessary making your vehicle possibly unrepairable. The model y is an example. The frunk lock and assembly is different on the first fifty or so. A second batch again 51 through 100 or so have a completely different frunk lock mounts etc. My dads boss' sister had a 2015 model s. The front bumper was damaged. Tesla changed the bolt and attachment points so that the 2016 wouldn't fit. The insurance company purchased and auctioned it as salvage as there were no bumpers available according to Tesla.

 

[JeffKeryk]

Tesla will lower cost by Giga Press structure and parallel assembly line manufacturing. Add in vertical integration, unlike other major car companies; the way they managed the chip shortage is a prime example. Their margins are far superior than anyone else so there is plenty of room to move. Tesla does not suffer legacy car company factories and labor issues. The Fremont plant is starting changeover to the Highland, partnered with a team from Shanghai, as we speak. Other companies, such as Ford are following suit to improve profitability and quality control.

 

[Ws6]

Tesla will lower cost by Giga Press structure and parallel assembly line manufacturing. Add in vertical integration, unlike other major car companies; the way they managed the chip shortage is a prime example. Their margins are far superior than anyone else so there is plenty of room to move. Tesla does not suffer legacy car company factories and labor issues. The Fremont plant is starting changeover to the Highland, partnered with a team from Shanghai, as we speak. Other companies, such as Ford are following suit to improve profitability and quality control.

Nice. This makes it basically disposable. Insurance rates will reflect it.

 

[JeffKeryk]

Nice. This makes it basically disposable. Insurance rates will reflect it.

If you are referring to the Giga Press, perhaps do a little reading on it. The design includes specific places to cut out damage and weld in replacements. Very rigid, very uniform. The Model Y rear casting eliminated about 70 individual parts and 300 welding robots.

 

[Ws6]

If you are referring to the Giga Press, perhaps do a little reading on it. The design includes specific places to cut out damage and weld in replacements. Very rigid, very uniform. The Model Y rear casting eliminated about 70 individual parts and 300 welding robots.

Sounds good on paper...

 

[UncleDave]

Sounds good on paper...

There is only one place it isnt good - the price upfront to build the plant.

Many manufacturers are moving to ever larger more complex stampings, but Tesla more so than most.

The crash argument is pretty weak and mostly proffered by the guys that cant or dont do it.

The same argument existed with the first unibody non frame rail based cars.

Guys like Munroe over this in great detail.