Tesla drops auto prices, starts bidding on land for game-changing Terafactory
We have actual news about actual Tesla price cuts. Then we have Elon Musk hinting at exciting new developments, but delaying the actual announcements. Then we have real bidding on possibly revolutionary factories. Nobody can keep this all straight. Certainly I can’t.
Or as the nerd proverb puts it,
In theory, there is no difference between theory and practice, but in practice there always is.
Anyway, it’s pleasant to be able to lead off with facts.
With such a widespread change in its vehicle pricing, speculations have emerged from the Tesla community about the reason behind the company’s recent adjustments. While some news outlets have noted that the reductions were likely implemented to boost wavering demand, a significant portion of the electric vehicle community are speculating that Tesla may have simply reached a point where its operations have become more efficient, and its production costs have gotten more optimized.
Interestingly, such a scenario was mentioned by the company in its first quarter earnings call, when Chief Finance Officer Zachary Kirkhorn mentioned that the Gigafactory Shanghai produced Model 3 still has a lot of potential for further price reductions. This, of course, becomes particularly notable when one considers Tesla’s battery innovations.
The Silicon Valley-based carmaker was expected to hold a Battery Day event this month, but the event was postponed partly due to the onset of the coronavirus. Speculations are abounding about what Battery Day is poised to reveal, with many in the EV community estimating that Tesla will be announcing several milestones, such as a million-mile battery and a system that allows the company to produce cells at around $100/kWh or cheaper. If Tesla is indeed close to these milestones, then a reduction to its vehicles’s [sic; their solecisms’s astonishment level is new to me] prices may definitely be warranted.
Tesla Terafactories Will Resolve Battery Constraints & Help TSLA Scale To 1M Units Per Year, Says ARK Invest
Terafactories first came about when Tesla Chief Finance Officer Zachary Kirkhorn mentioned how massive the company’s Gigafactories could be in the future. “It could start being called Tera,” said Elon Musk, during the Q1 2020 Earnings Call.
“Tesla will reveal the machine that will allow them to scale to terawatt-hours, fulfilling the promise to accelerate the world’s transition to sustainable energy. We can’t do that unless you have factories that can crank out massive amounts of batteries. That’s why I’m excited about it.”
Tesla Roundup: Hot Stock, Bigger ‘Terafactories,’ Better Battery Tech, Fremont Factory Reopens — Forbes
Actual rumors are flying, and not on hippogriffs.
Torque News is updating this story with a breaking development according to which an anonymous source tells Third Row Tesla Podcast that Tesla has just purchased land, presumably for its Austin Cybertruck Terafactory, between Austin and Jarrell, TX. This is developing.
Morgan Stanley analyst Adam Jonas believes that Tesla’s newest electric vehicle production facility will land in Texas. In an investor’s note on Monday, the analyst gave six key reasons for why he believes Texas will be Tesla’s newest home.
The upcoming facility is expected to be dedicated for the production of the Cybertruck, which will require a different manufacturing system compared to Tesla’s previous cars. The factory will be massive, and in the first quarter earnings call, Musk even mentioned that the Gigafactories will probably be referred to as “Terafactories” soon.
Never mind what it’s called. What does it do?
Richard Feynman’s father’s rule.
Tesla is also understood to be accelerating its stainless steel production capabilities, obviating the need for paint. Painting has turned out to be one of the greatest bottlenecks for mass producing a variety of Tesla EVs.
In the meantime,
— Tesmanian.com (@Tesmanian_com) May 4, 2020
Hey, you head-in-the-sand laggards in the gas-and-diesel guzzler industries! It’s getting real again. Just like when the Europeans came over. And the Japanese. And the Koreans. And now the Chinese. And maybe even the Indians.
(Crossposted with DailyKos.)