Today’s Sandy Munro discussion on @Autoline was filled with incredible insights on Tesla profitability, design, competitive advantages, and more 🔥🔥.
Here’s a tweetstorm recap, edited only for brevity or clarity.
$TSLAQ
Here’s a tweetstorm recap, edited only for brevity or clarity.
$TSLAQ
On TM3 Body:
“[Tesla has] overdesigned the vehicle. Tesla Model 3 is heavier than the [BMW] 328i. So the body isn’t done well. And the aluminum trunk – I don’t understand the rationale. It didn’t lighten the car and made it horrible for manufacturing. That was the bad part..."
“[Tesla has] overdesigned the vehicle. Tesla Model 3 is heavier than the [BMW] 328i. So the body isn’t done well. And the aluminum trunk – I don’t understand the rationale. It didn’t lighten the car and made it horrible for manufacturing. That was the bad part..."
"The good part is everything else: five bar link for suspension, best electronics we’ve ever seen, lowest # of hoses, 40% less harnesses, the batteries I loved, and the electric motors – they’ve got magic."
“The electric motor is smaller and lighter than everybody else, but outperforms everybody. That hallback array has really made a difference for power.”
“You can’t reverse engineer [the magnet]. The twists and turns have all these little nuances. I really think this is the gamechanger.”
On TM3 Profitability:
“Should be able to do over 30% gross. Over. [Even] if it was manufactured even halfway close to where a normal car company would be.”
“Should be able to do over 30% gross. Over. [Even] if it was manufactured even halfway close to where a normal car company would be.”
On Base TM3:
Believes $35K TM3 will generate 18% gross margin
Believes $35K TM3 will generate 18% gross margin
On China:
“Elon made a few mistakes on that body. You think he’s gonna do it again? I don’t. You think the production lines are gonna [be as bad] as he’s in California? I don’t. I think the factory in China is going to be wicked compared to what they’ve got in the States, and...
“Elon made a few mistakes on that body. You think he’s gonna do it again? I don’t. You think the production lines are gonna [be as bad] as he’s in California? I don’t. I think the factory in China is going to be wicked compared to what they’ve got in the States, and...
"...I think he’s going to be able to clobber everyone in China.”
On China Manufacturing Efficiencies:
“I bet you body & weight’s a clean sheet. [They can] easy pull out 20% [input costs]. Easy. And that’s normal. That doesn’t count if I can get rid of the ugliness of the body and weight. I think there’s $300 that can come out…”
“I bet you body & weight’s a clean sheet. [They can] easy pull out 20% [input costs]. Easy. And that’s normal. That doesn’t count if I can get rid of the ugliness of the body and weight. I think there’s $300 that can come out…”
On Cooling System:
“This changes everything. Nobody else is doing anything like this.”
“This changes everything. Nobody else is doing anything like this.”
On Tesla’s Vertical Integration:
“We found very little that came from outside suppliers. We have a list of suppliers, but it’s not a very big list. One of the reasons why they’re successful, and why most analysts are wrong, is there’s no second markup.”
“We found very little that came from outside suppliers. We have a list of suppliers, but it’s not a very big list. One of the reasons why they’re successful, and why most analysts are wrong, is there’s no second markup.”
“[I supported GM outsourcing battery production] because GM didn’t have the internal expertise, whereas Tesla has it.”
“When he takes [Model 3] to China, [Tesla’s] gonna make a gazillion bucks. I guarantee it.”
On Elon Musk:
“Great ideas come from the fringes. They never come from the core. Never.”
“Great ideas come from the fringes. They never come from the core. Never.”
