<story><title>Munro Teardown Shows Tesla Model 3 Solidly Profitable [video]</title><url>https://youtube.com/watch?v=pAS-yjWj9DY</url></story><parent_chain><item><author>Animats</author><text>That&amp;#x27;s bill of materials cost. What&amp;#x27;s killing Tesla is labor cost in assembly. Tesla has about 10,000 employees in Fremont, to produce about 3500 cars a week., per Bloomberg.[1] (No, not 5000 cars; they got up to 4500 once, though.)&lt;p&gt;Modern auto assembly plants typically run about 15-30 labor hours per car.[2] Tesla&amp;#x27;s Fremont plant is somewhere over 110, even in good weeks. In bad weeks, the ratio is much worse.&lt;p&gt;The point of the teardown is that the design isn&amp;#x27;t inherently expensive. If Tesla ever gets their assembly plant working properly, they could make money.&lt;p&gt;Musk commented &amp;quot;go to Ford, it looks like a morgue&amp;quot;, after apparently visiting the Ford Rouge plant. Ford&amp;#x27;s PR person replied &amp;quot;No doubt the vibe is funky in that &amp;#x27;makeshift tent,&amp;#x27; but it&amp;#x27;s not bad either across the street at the #FordRouge plant where a high quality, high-tech F-150 rolls off the line every 53 seconds like clockwork.&amp;quot; That&amp;#x27;s what&amp;#x27;s supposed to happen. Cars coming off the line at a steady rate, union workers not being worked to death.&lt;p&gt;[1] &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.bloomberg.com&amp;#x2F;graphics&amp;#x2F;2018-tesla-tracker&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.bloomberg.com&amp;#x2F;graphics&amp;#x2F;2018-tesla-tracker&amp;#x2F;&lt;/a&gt; 
[2] &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.motortrend.com&amp;#x2F;news&amp;#x2F;toyota-chrysler-have-north-americas-most-efficient-plants-1859&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.motortrend.com&amp;#x2F;news&amp;#x2F;toyota-chrysler-have-north-a...&lt;/a&gt;</text></item></parent_chain><comment><author>Giorgi</author><text>Not true, Munro does labor of cost assessments as well, not just BoM. If Munro is saying car is profitable then I am pretty sure he factored that in.</text></comment>
<story><title>Munro Teardown Shows Tesla Model 3 Solidly Profitable [video]</title><url>https://youtube.com/watch?v=pAS-yjWj9DY</url></story><parent_chain><item><author>Animats</author><text>That&amp;#x27;s bill of materials cost. What&amp;#x27;s killing Tesla is labor cost in assembly. Tesla has about 10,000 employees in Fremont, to produce about 3500 cars a week., per Bloomberg.[1] (No, not 5000 cars; they got up to 4500 once, though.)&lt;p&gt;Modern auto assembly plants typically run about 15-30 labor hours per car.[2] Tesla&amp;#x27;s Fremont plant is somewhere over 110, even in good weeks. In bad weeks, the ratio is much worse.&lt;p&gt;The point of the teardown is that the design isn&amp;#x27;t inherently expensive. If Tesla ever gets their assembly plant working properly, they could make money.&lt;p&gt;Musk commented &amp;quot;go to Ford, it looks like a morgue&amp;quot;, after apparently visiting the Ford Rouge plant. Ford&amp;#x27;s PR person replied &amp;quot;No doubt the vibe is funky in that &amp;#x27;makeshift tent,&amp;#x27; but it&amp;#x27;s not bad either across the street at the #FordRouge plant where a high quality, high-tech F-150 rolls off the line every 53 seconds like clockwork.&amp;quot; That&amp;#x27;s what&amp;#x27;s supposed to happen. Cars coming off the line at a steady rate, union workers not being worked to death.&lt;p&gt;[1] &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.bloomberg.com&amp;#x2F;graphics&amp;#x2F;2018-tesla-tracker&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.bloomberg.com&amp;#x2F;graphics&amp;#x2F;2018-tesla-tracker&amp;#x2F;&lt;/a&gt; 
[2] &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.motortrend.com&amp;#x2F;news&amp;#x2F;toyota-chrysler-have-north-americas-most-efficient-plants-1859&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.motortrend.com&amp;#x2F;news&amp;#x2F;toyota-chrysler-have-north-a...&lt;/a&gt;</text></item></parent_chain><comment><author>mikeash</author><text>Is your figure of 10,000 employees just for the Model 3 lines, or is it for the entire factory? Because they’re making about 2,000 Model S and X per week, so your numbers need to account for that if it’s the entire factory.</text></comment>