Most auto production lines produce nearly 500 cars per shift. Normal cycle times in an auto plant are about one minute. Here's a Mercedes production line.[1] That's a vehicle on a par with Tesla's products.
Something is terribly wrong in Fremont.
Something is terribly wrong in Fremont.
If Tesla is stuck on a battery bottleneck it's just as silly as if Mercedes were stuck on a sheet metal bottleneck. Yes, you need reliable component suppliers that can scale with you as you grow and provide the quality you need. If you don't have that, you have a big problem that vertical integration isn't going to solve.
The Mercedes E-class is monocoque, like almost all cars. They build the body/frame and then add the powertrain and wheels. Here's the body/frame and the powertrain/suspension coming together.[1] The powertrain and suspension aren't self-supporting; they're a collection of parts held in a fixture. That's very clear in the video of the parts coming together.
The Tesla Model S, though, is body on frame. If it can sit on its wheels without a body, as the Tesla Model S can, it's body-on-frame. Here's the Tesla Model S platform sitting on its wheels, with the powertrain installed.[2]
So is the Tesla Model 3.[3]
[1] https://youtu.be/lPKnM9vC6V0?t=395 [2] https://www.youtube.com/watch?v=l8WUIkD7xxI [3] https://jalopnik.com/why-tesla-needs-to-sell-the-model-3-wit...
If you want to compete in a market, you got to play at the speed/quality/prices of the market -- there is no slack given for being new.
Their real risk is if the Model 3's reliability is bad or they need a recall thus reducing their profits significantly.
"The truth is the Model 3 costs $40,000 if you want a standard version with autopilot (an extra $5,000) in black with no other options. If you want a different color, add $1,000. And if you want a longer range ($9,000) to get over 300 miles per charge instead of 220, well now we’re at $50,000. $50,000 for a midrange car."[1]
[1] https://www.theverge.com/2017/7/31/16069960/tesla-model-3-no...
"Enhanced Autopilot adds these new capabilities to the Tesla Autopilot driving experience. Your Tesla will match speed to traffic conditions, keep within a lane, automatically change lanes without requiring driver input, transition from one freeway to another, exit the freeway when your destination is near, self-park when near a parking spot and be summoned to and from your garage."
You can get adaptive cruse control for more reasonable costs, but lane changing takes a lot more awareness around the car.
In the end, unless they get profitable, if they burn their stash, they're toast.