Model 3 production delays...

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Frank99

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Sorry about that, but I still have to deal with those nightmares. The software team at my company just cost us $50,000,000 in revenue next year by being unable to build their software correctly for the last four days, causing our potential customer to eliminate us as a supplier. Sigh.
 

Dr. J

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Sorry about that, but I still have to deal with those nightmares. The software team at my company just cost us $50,000,000 in revenue next year by being unable to build their software correctly for the last four days, causing our potential customer to eliminate us as a supplier. Sigh.
Yikes! Here, you're going to need this Tylenol more than me.....
 

Bokonon

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Sorry about that, but I still have to deal with those nightmares. The software team at my company just cost us $50,000,000 in revenue next year by being unable to build their software correctly for the last four days, causing our potential customer to eliminate us as a supplier. Sigh.
Coming from a scrappy, undersized software company that has to execute perfectly on a daily basis for its mere $1M in annual revenue, stories like these simply boggle my mind....

I enjoyed your analysis-by-analogy with respect to Tesla's supplier issues, though, and found it very on point.
 

Frank99

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Yeah, I just thought I'd counteract all the discussion about HARDWARE suppliers, when Elon was quite clear that a Software failure was a big part of the issue. There may have been a hardware issue also, but there's no info on that.
 

AM1

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@Frank99 : Great posts. Thanks. Would a competent COO have a better chance of catching these issues before they were happening instead of a CEO who is basically acting COO and stretched thin by having many projects not related to Tesla going on at the same time?
I realize the release/firing/leaving of one of the battery VPs may be an indication of the person on the Tesla side of things that missed this issue but from your perspective are there good people out there that could pick up 'glossy software demonstrations' along the way that really were full of problems?

If nothing else comes out of the X ramp and '3' ramp issues then we get a COO to make sure that the trains run on time I will be happy with that outcome.
 

Mark C

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On the plus side of a delayed production ramp, I'll be able to have a larger down payment, the first Model 3 recipients will have had more "beta test" time to report other issues (and there'll be more time to iron those wrinkles out) and I won't have to worry about the $7500 tax credit (I don't think it will be killed) because the S & X are still selling in decent numbers and I am an April 5, 16 reservation holder looking for a small battery car.

Funny, thing though...I don't feel that much better knowing that there are several plusses to the delay. o_O
 

3Victoria

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Realizing it was the job of the guy who runs the battery production. Now he's gone. Coincidence? I think not...

In subcontracting chains it happens all the time - subcontractor lies and covers their lies up, and you don't notice it until **** really starts hitting the fan. You realize you should have been more alert, but mumblemumbleexcusemumble, and then you're fired. And someone else gets to clean up the mess. Whenever a company exec leaves you can be pretty sure it's either because they fucked up, got offered a better position or burned out (and then fucked up because of the burnout).

So this just shows that Tesla does not yet have the experience of running a big show on time. Will it be a problem going forward? Perhaps. Depends on whether they can hire good talent with experience...
I agree with your first two paragraphs, but I think you draw the wrong conclusion. These are problems with all production, as others point out. It is the nature of the beast that one never really knows if it will work without trying it in reality at speed.
 

John

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Tesla has more software engineers working in manufacturing than any other kind. Were it not for software, the entire process would be more predictable. But it would also be more labor intensive, slower, and prone to more production variation. A production line with lots of software? Brilliant when done, highly flexible and manageable, but wicked-hard to build the first time.It's what you want, but it's "hell" to build.
 

Frank99

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@Frank99 : Great posts. Thanks. Would a competent COO have a better chance of catching these issues before they were happening instead of a CEO who is basically acting COO and stretched thin by having many projects not related to Tesla going on at the same time?
I realize the release/firing/leaving of one of the battery VPs may be an indication of the person on the Tesla side of things that missed this issue but from your perspective are there good people out there that could pick up 'glossy software demonstrations' along the way that really were full of problems?

If nothing else comes out of the X ramp and '3' ramp issues then we get a COO to make sure that the trains run on time I will be happy with that outcome.
No, that's not the job of a CEO or COO. It would be a VP of Engineering who would be responsible for that oversight - but it would require one very versed in working with software suppliers, and one smart enough to dedicate one or two people to live in the suppliers shorts through the whole development.
 

Steam613

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Options availability?
I would think that delays in the ramp up proportionally delay offering additional options. I think that because I just do, not based on any fact. So what do the masses say? Do you think, oh for example, the white interior will be offered based on the calendar or based on the fact they wanted to run 'x' vehicles through production before making AWD, standard interior, and the so easy to implement ;) white interior?
 

Idur

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Options availability?
I would think that delays in the ramp up proportionally delay offering additional options. I think that because I just do, not based on any fact. So what do the masses say? Do you think, oh for example, the white interior will be offered based on the calendar or based on the fact they wanted to run 'x' vehicles through production before making AWD, standard interior, and the so easy to implement ;) white interior?
People at Tesla need to put X effort into getting these options ready. If they now need to put that effort into ramping up production, the options will come later. If they can work on the options while others worry about production bottlenecks, then the options will come at the planned moment. I have no idea if e.g. interior is a bottleneck in any way.