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$30K Tesla cost reduction idea

I want a $30K Tesla ASAP. To lower the cost, can you please design 3rd Gen car with two super modules.

Super Module 1:
your core IP (Intelligent Property) Super Module, which includes Battery pack, Motor and Computer system only.

Super Module 2:
Pre-assembled everything for rest of the car.

The idea is to out source the Super Module 2 to whoever can build with lowest cost. Whenever you need to build a car, just order the Super Module 2 and drop in the Super Module 1, and you are done. No overhead, no invertory and quick turn around to build a low cost car.

Another idea is to build a Gate way on every 17" control pad so that customers can order things they needed directly from there. This will help to lower the cost in long run since you can get charge others who wants to sell something to your customers.

Thanks! I want to make a reservation today.

@ Kliest, I never been to Chineese factories. I know the conditions in China are not great. There is a large unemployment in China. But the thing is the Chineese government has to work on the working conditions and unemployment not Apple. I know for sure Apple mandated its suppliers about working conditions and also funded several organizations to conduct studies at Chineese facilities about working conditions. I know few people who conducted these studies and they said to me Apple is pushing hard but they just can't do every thing and govt in China doesn't act , for them it's very common.

I am from India and visited many manufacturing facilities during my under grad days. Even in India (much better than China) the working conditions are not great (compared to states). It's pretty much acceptable there, but if a person from US visits these facilities he would just say this is hell. So there is huge disparity in working conditions at American manufacturing facilities and countries like india (remember China is much worse than india, from what I heard - the socialist govt mandates every thing). A manufacturing facility in india which is very normal might be looking like hell house for American visiting these facilities.

@sgarapat - yes, I am from a manufacturing background and helped to start up many high tech factories around the world. I have been to the Tesla factury in March and all I can say is Tesla is re-writing the textbook on how to start a factory... I couldn't do it better ( probably I would do worse ).
Second - there is an economy of scale, but on the other hand there is also a cost of scale - if a small team like TM needs $1M to finish a task then in a large company it takes $10-100 M to do the same task and instead of 1 month it takes a year. I work in a large company and only know too well the time and patience it takes to get simple tasks done.

@Kliest :
If you don't mind could I know what manufacturing product line you work on. If it is sheet metal or plastic injection molding design or manufacturing please let me know. I would like to ask you few questions, only if you don't mind.

@sgarapat

Not Kliest but Kleist

"Ewald Georg von Kleist" is the inventor of the first device to store "vast" amounts of electricity ( a capacitor ) in 1745.

I work in computer harddrives - up and down the various functional operations over the years. Currently I am working in the operations to make read/write head.

Apologize for spelling your name wrong. Thanks for the info!
I am recent college graduate, just started my career as a Sr.Mechanical Design Engineer. I am always looking to interact with experienced people in the industry, I believe I could learn a lot and become a better engineer. I will stay in touch. It's been a pleasure interacting with you.

My college graduate work could be found here in case if you are interested in looking

http://srigarapati.com/Research/About_Me.html

If Tesla were going to farm out any manufacturing, I think it would be to Mercedes or Toyota. They already have strong relationships with both companies, and both are shareholders in Tesla.

@kleist - ...the choice is starvation or work...

Isn't that basically true for most of us?

My two cents ...

I put in the reservation 3 years ago (and have been saving for about 3 1/2 years). I saved monthly, weekly, daily. Stopped getting starbucks, stopped buying crap that I didn't need, stopped eating out (mostly). I take pride in the car knowing that I earned every penny that went into the car the old fashion way (penny saved is a penny earned, right?).

I scraped it all up, and by the time the car was available, I didn't need to demand a $30K TESLA ASAP.

Is it me, or does it seem like people sometimes have unrealistic expectations? A lot of us can't afford to make bizarre demands of auto companies. I don't understand where this notion of entitlement for $30K Teslas ASAP comes from. I guess our insane consumerism has produced an entitled class of people who believe they are owed something.

Sometimes in life take the long road ... steady perseverance reaching toward your goals. In the end, I suspect it will be more rewarding and fulfilling.

Good luck to you SEASTAR888. I do wish you well on your journey.

@BrianH It is not right to say Tesla got the NUMMI factory "for a few pieces of paper". Consider what those shares are worth now, and the opportunity costs that Tesla gave up by using that money to purchase the plant (which was a great decision and allows Tesla to control their product and destiny) rather than do something else, like say buy more pre-assembled modules from others like Fiskar did.
On quality control, I am very pleased with the QA/QC as evidenced by my Models S85 (pano, tech, sound). No issues at all in the six weeks and 2200 miles since I took delivery. Every day I drive I drive with a smile.

That's admirable xradr, but the sad truth is that even if I didn't spend a SINGLE penny for three years, for housing, food, clothing, ANYTHING, I still couldn't afford a 60kwh car in the UK (£65k [$99k]), and it's not like I'm earning minimum wage.

Now a "$30k" (£35k [$53k]) car, well, that I could do, if I scrimped to the max.

@ Flaninacupboard,

The sad truth is that I can't afford a $40M dollar home, no matter how long I save. But I don't feel entitled to it, nor do I feel like I should demand the owner sell it to me for $10M dollars (which I also can't afford, hehe). If I can't make it, then I do without until I can afford it. I use the absurd home example as a matter of scale to illustrate that at some price point almost all of us can't afford something. AND --> that's OK!!!!

I suspect costs will continue to drop (over the next decade), technology will improve and become more widespread and EV adoption will continue to increase. Same thing happened with personal computers over the last 30+ years. Patience and perseverance are virtues that are so often under appreciated in our consumer driven, instant gratification entitlement societies (I want it now and at below materials pricing, in a manner of production that is inconsistent with the ethos of the company). I get the hint of arrogance/entitlement based on the OP. Perhaps I've just read WAY too much into it though (it will not be the last time I'm wrong today, hehe).

Tesla's (and SpaceX's) production strategy is maximum vertical integration to control, and then reduce, costs. That means 'make it yourself.'

They also of course have control this way over customer perception of quality.

SpaceX is spanking everybody else in the booster business this way. The model S is expensive because it's big, aluminum, advanced, and has thousands of batteries. GM or Ford would NOT be fundamentally more efficient. Maybe you could 'dumb down' the design to a clasic sheet steel... but a body in white doesn't cost much (steel ones are less than $2000). The value add is motors, electronics, interiors, etc, etc.

Commodity sheet steel is about $1 per pound and aluminum is $2-5 per pound. A typical steel car body is about 700 pounds. So maybe you could save $1000-2000 by using steel... but the weight would hurt the car. I am sure that Tesla could save as much or more with steel as anybody else could.


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