ColdFusion - Tesla Model 3 Starts Production! | Make or Break For Tesla

Starting point is 00:00:00 You are watching Cold Fusion TV. White Marri. Hi, welcome to another Cold Fusion video. So it's finally happening. Tesla has started production of the Model 3 and it's two weeks earlier than planned. The Tesla Model 3 will be one of the world's first, high-performance, long-range, medium-priced, all-electric car for the masses. Established car manufacturers may have fully electric cars, but they're either too expensive, too expensive or lack the full focus of the parent company. This usually results in

Starting point is 00:00:33 strange-looking cars or glorified golf carts. This puts Tesla and the Model 3 at an advantage, but how long would this last? On the other hand, newcomers that are dubbed Tesla killers like Faraday Future and Lucid Motors may have good-looking futuristic cars, but the brand recognition and loyalty just isn't there yet. And in addition, there's some uncertainty of real-world performance as these vehicles aren't in mass production yet. In short, Tesla has a head start with the Model 3. This is the make-or-break moment for Tesla, a critical test to see if they can put all of what they've learned in the past nine years or so into a mass market product.

Starting point is 00:01:09 If they succeed, it would put the company in a better financial situation and solidify them as a leader in electric vehicles. But if they fail, it will be catastrophic for the company. In this video, we'll take a look at what's happening. The first deliveries of the Model 3 will take place on July 28th. Elon Musk stated that production would ramp up quickly and there would be 20,000 Model 3s produced a month starting in December. He expects to push half a million cars a year by 2018.

Starting point is 00:01:37 Despite this, delivery wait times are going to be very long according to Musk. He warned that buyers who want a car before 2019 need to make their reservations as soon as possible. Looking at the broadoscope of things, research analyst Gene Muster likens the Model 3 to an iPhone moment not only for electric cars but also for autonomous trucks. What's behind your analogy between the Model 3 and the iPhone? Well, the iPhone really set the stone, the stage for what smartphones could ultimately be. I think the Model 3 has that same opportunity, not just for electric vehicles, but also for the opportunity around autonomy. This is going to be a radical change, similar to the iPhone that was a radical change when we went from a flip phone to a computer in your pockets.

Starting point is 00:02:22 So let's take a quick look at the specs. The most basic configuration of the Model 3 will get you 215 miles of range, but variants with bigger batteries could go over 300 miles on a single charge. For comparison, a four-cylinder Toyota Camry, one of the world's most popular cars, will give you an average of just under 500 miles per tank. The slowest Model 3 can accelerate from 0 to 100 km an hour or 0 to 60 miles an hour in 5.6 seconds. Rumors suggest that the ludicrous mode of the Model 3 would be able to do this under 3 seconds.

Starting point is 00:02:54 2017 four-cylinder camry will do this in 8.5 seconds. Full-wheel drive options will also be available for the Model 3, and Tesla's autopilot package of electronic driving aids such as automatic lane changing, road sign reading and collision detection will be available. The base model starts for 35,000 US dollars with incentives, but there's no price given for the top model just yet. Until now, the company has been positioning itself as a luxury car manufacturer, producing cars in relatively small numbers and typically selling them for $120,000 or more.

Starting point is 00:03:29 From a business point of view, Tesla needed to do this as the technology that they were putting together was done in such a way that was new and expensive. Now that they've learnt the ropes and have honed their craft, they can increase production volume and move down market into the general auto space. Musk also said that Tesla is working to automate its assembly plant even further to increase the Model 3 output. At a shareholders meeting, he disclosed that the company was looking at additional plants in addition to the one that they have in Fremont, California. The solution, possibly China. Tesla has had discussions with Chinese officials about opening a plant near Shanghai. This makes sense as China accounted for 15% of Tesla's revenue in 2016.

Starting point is 00:04:10 To prepare for the arrival of the Model 3, Tesla built an $8 billion factory in Nevada to produce batteries for the electric cars. This year, Tesla also raised $1 billion through offerings of stock and debt. Interestingly, a Chinese internet giant, Tencent Holdings, acquired a 5% stake in the company. The company needs this extra capital because it continues to make losses each quarter. In the first quarter, Tesla lost $397 million, almost $100 million more than last year, but its revenue has more than doubled year over year to $2.7 billion. So it all comes back to the Model 3. The Model 3 is the only real opportunity to turn this trend around. The clock is ticking and investors are getting nervous.

Starting point is 00:04:55 Although stock markets are a complete speculation nowadays, the company lost $12 billion in market share just in the last week and $63 billion since its June 23rd peak, at which they were the most valuable car company in the US. Of course, Tesla does a lot more things than cars, but this still shows the sentiment. This drop in Tesla's stock price comes hot off the hills from Volvo saying that they're going to start phasing out petrol cars

Starting point is 00:05:18 and eventually move to all electric cars. The competition is just around the corner and the stakes couldn't be higher. Again, if Tesla succeeds, it will be the start of a bright new error for the company, but if there's a recall or some other failure, it could spell disaster. Regardless, this is a very interesting time in history right now, and I'm certainly watching to see what happens. In any situation, the consumer wins, and whether you love them or hate them, you must take your hat off to Tesla for getting this ballroom.

Starting point is 00:05:48 rolling in electric cars. I hope you liked that quick roundup about the Tesla Model 3 and what it means for Tesla. But on another topic, I know a few of you are going to be asking about my Bitcoin and blockchain videos. So I'm going to update you about that. So I've hit some delays, as my original blockchain expert can no longer do a video in a timely fashion. So I've had to connect with some other experts. But in short, I'm still working at it, so don't throw stuff at the screen just yet.

Starting point is 00:06:12 The videos are coming. Anyway, thanks for watching this video. If you're new here, feel free to subscribe. Give this video a thumbs up if you liked it. This has been DeGogo. You've been watching Cold Fusion and I'll see you again soon for another video. Cheers guys, have a good one.

ColdFusion - Tesla Model 3 Starts Production! | Make or Break For Tesla

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