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In software:
Prototype is proof of concept.

Alpha is early, rough build verifying feature set

Beta is testing final production processes.

They are getting close to production
From my experience in the automotive industry, production beta is the step where it is the final design but may still use prototype tools. In other words, it is not the final process but if you looked at the finished product you likely could not tell the difference from production.

Obviously the use of prototype tools may introduce some minor deviations in the parts but usually those differences should not cause any functional differences.
 
With the advent of so many battery factories, we're likely to get so many compliance EV's flooding the world market over the coming years. Tesla's cars aren't going to be worth what they're worth now in market cap (i.e. deliveries). You can see it happening via the price cuts.

The prediction from Elon that the value of Tesla is directly on FSD is becoming more and more reality. Glad they're always ahead of the curve and have had such a huge jumpstart in the transition.
I disagree because:

1) When other companies that are trusted by consumers get into EVs at higher scale and with more models, it attracts attention to EVs and also legitimizes EVs for those consumers. Ultimately this drives cross-shopping traffic that funnels more customers to Tesla, as we saw with the Superbowl EV ads last year spiking Tesla’s order flow overnight despite Tesla doing nothing special in the US market that day. The real loser in this situation is ICEV sales.

2) Independent of competitors, the long term secular trend is that EV demand is rising faster than production. As time goes on this disruption will continue to accelerate. Remember that owning an ICEV is still convenient and we still aren’t at sticker price parity. The supporting industry of gas stations and repair businesses hasn’t started to collapse yet. The self-reinforcing death spiral for ICE technology is only now starting to gain a bit of momentum.

3) Compliance EVs are a transient phenomenon, being inherently unsuitable for mass production. If you’re making very little gross profit on your cars, or even negative gross profit, then this strategy works only on a small scale when protecting profits on ICEVs can subsidize the uneconomical EVs. Tesla has a path to making fat stacks of money on 10M+ EVs per year; thus far, nobody else has this at all.

4) 30% gross margins are not at all necessary for Tesla to earn profits of $100B+ per year on selling cars and ancillary stuff (insurance, premium connectivity, accessories, etc). The car business has strong economies of scale. Tesla’s cost advantage will ultimately enable them to drop margins maybe to 15 to 20% in exchange for huge growth in sales volume. Competitors can’t do this on this on EVs without going bankrupt, except for maybe BYD. The recent aggressive price drops by Tesla will probably not be the last, and competitors can’t survive much more of this when they’re already financially distressed.

For example, suppose Tesla makes:
  • $6900 lifetime total profit per car off of $38000 average lifetime revenue per car for 18% gross margin
  • 20M cars sold annually
  • $15B operating expenses
  • 15% net tax
Total automotive earnings, assuming zero for Tesla Energy, would be $105B per year.

5) I interpreted Elon’s comments on TSLA being worth “basically zero” without FSD as really a comparison of the immense value with autonomous driving relative to the value without.
 
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I disagree because:

1) When other companies that are trusted by consumers get into EVs at higher scale and with more models, it attracts attention to EVs and also legitimizes EVs for those consumers. Ultimately this drives cross-shopping traffic that funnels more customers to Tesla, as we saw with the Superbowl EV ads last year spiking Tesla’s order flow overnight despite Tesla doing nothing special in the US market that day. The real loser in this situation is ICEV sales.

2) Independent of competitors, the long term secular trend is that EV demand is rising faster than production. As time goes on this disruption will continue to accelerate. Remember that owning an ICEV is still convenient. The supporting industry of gas stations and repair businesses hasn’t started to collapse yet. The self-reinforcing death spiral is only now starting to gain a bit of momentum.

3) Compliance EVs are a transient phenomenon, being inherently unsuitable for mass production. If you’re making very little gross profit on your cars, or even negative gross profit, then this strategy works only on a small scale when protecting profits on ICEVs can subsidize the uneconomical EVs. Tesla has a path to making fat stacks of money on 10M+ EVs per year; thus far, nobody else has this at all.

4) 30% gross margins are not at all necessary for Tesla to earn profits of $100B+ per year on selling cars and ancillary stuff (insurance, premium connectivity, accessories, etc). The car business has strong economies of scale. Tesla’s cost advantage will ultimately enable them to drop margins maybe to the 15-20% range in exchange for huge growth in sales volume. Competitors can’t do this on this on EVs without going bankrupt, except for maybe BYD. The recent aggressive price drops by Tesla will probably not be the last, and competitors can’t survive much more of this when they’re already financially distressed.

For example, suppose Tesla makes:
  • $6900 lifetime total profit per car off of $38000 average lifetime revenue per car for 18% gross margin
  • 20M cars sold annually
  • $15B operating expenses
  • 15% net tax
Total automotive earnings, assuming zero for Tesla Energy, would be $105B per year.

5) I interpreted Elon’s comments on TSLA being worth “basically zero” without FSD as really a comparison of the immense value with autonomous driving relative to the value without.

I'm just touching on the economies of scale. Personally, I don't think margins are going to suffer on Teslas as they scale as the cost of making these vehicles will be cheaper, IMO.

The cost of the cars to deliver to consumers will probably continue to go down because its just the right thing to do in this transition compared to keeping prices high while margins increase (both due to more and more robotics in the supply chain and economics of scale from greater lithium mines and EV factories...not to name Redwood Materials too for recycling). Tesla, even now, could choose to price gouge customers during this transition, but they're not.

The cost of the add-on features will probably increase though. Just like how MMORPG's games, as an example, are usually cheap in terms of initial purchase, they have in-game paid features (whether its by subscription or commerce) that increases LTV for each customer that Tesla can forever be applied. It takes money to keep servers running.
 
Boring Company Loop infrastructure in combination with autonomous electric vehicles (AEVs) is the best thing to happen--in the last century--to urban planning possibilities and biking and other types of muscle-powered transportation. I’ve spent most of the last ten years not owning a car while living in the US and was trying to solve the biking problem long before I ever got into Tesla.

I’ve analyzed this pretty deeply and I do not see a viable long term path for busses and trains. They are important for now but are on the way to obsolescence in most cases. Loop can offer personal rapid transit that beats traditional mass transit on every level. I’m working on a thesis to present to the community hopefully in the coming months. Here is the overview of the train and bus comparison.

I bring this up here in the investor thread because I believe Tesla and Boring are disrupting more than just ICEVs and fossil fuels, and the economic and social ramifications are staggering and overwhelmingly positive, as far as I can tell.

Advantages vs. trains (most of which also applies to busses)

* Higher average speed. No stoppages. Shorter trip time. AEVs in a Loop is more like a train in continuous high speed circulation with individual vehicles entering and leaving dynamically. Like current highway system except no intersections, much more frequent on ramps and off ramps, and computer control.

* More energy-efficient and more materials-efficient.
* Mainly due to continuous motion and higher percentage of seats in moving vehicle actually being occupied.​
* Model Y with at least two passengers uses less energy per passenger-mile than any train service averages, and Ys aren’t even optimized for this use case.​
* Ex: 240 Wh/mile with 4 passengers --> 60 Wh/pax-mi . Leads transit industry already.​

* Higher passengers per hour capacity in most cases.
* Trains and busses have lots of passengers per vehicle but long, empty gaps between vehicles. Loop AEVs could have gaps as low as 1 second —> 3600 vehicles per hour per lane. Multiply by average number of passengers per vehicle. For very crowded routes, maybe 10 per veh —> 36k passengers per hr for just one tunnel.​
* Many Loop tunnels can be built for price of one subway tunnel, or even aboveground train right-of-way or dedicated bus lane.​

* Costs MUCH less
* I'm seeing some estimates that just the tracks, electrical equipment and signalling equipment alone cost about $9 million per mile for trains, which is more than the cost of a tunnel bored by Prufrock​
* Even in countries with cheapest train lines, it's usually at least $200 million per mile for urban passenger train lines. In USA it's far worse.​
* Loop has much lower ongoing operational costs too, especially after switching to AEVs instead of using human drivers.​

* Vehicles are perfectly compatible with existing surface road system, solving last mile problem during early stage of scaling network. With aboveground autonomy, could do full point-to-point service.

* Allows private personal transport for people willing to pay extra
* e.g. people who: don't want to ride in sketchy subway car at midnight, have kids who won't behave appropriately for a train, want to listen to loud music, want quiet and privacy to sleep/work/read/watch/game etc.)​

* Riders never need to switch vehicles en route to destination

* Quieter, more comfortable ride. No bumps and no stoppages better for people with back pain, nausea and similar medical issues. No noisy bus engine. No screeching wheels and brakes on train. No potholes on Loop pavement.

* Less waiting time for passengers prior to boarding

* Greater station density in a neighborhood resulting in shorter first and last mile legs of a given journey. Small-footprint aboveground stations or just holes in the ground.

* Faster planning and construction
* No gigantic expensive underground stations. Aboveground access points can be in parking lots and parking garages​
* Tunnel can be narrower (yes, London Underground and some other older networks are just as narrow, but these are legacy systems that are not required to meet modern safety and accessibility standards).​
* No need to build and maintain train tracks.​

* Politics less of a threat to construction.
* NIMBYs have less to complain about.​
* No more endless debates about public and private transit.​
* Cyclists and pedestrians happier too.​
* Can be accomplished more easily in a democracy bc projects can be completed and benefitting voters within an elected leader's term​

* Safer
* No hazardous high voltage live power lines​
* No danger of people being hit by train/bus arriving at the station​
* Minimal epidemic & pandemic risk, especially for diseases communicable by air, bodily fluids, or personal contact​
* No chance of catastrophic derailing accidents​

* More precisely scalable to demand for a particular route while retaining benefits of standardization and economies of scale from mass production. Also scalable even throughout day such that vehicle payload fraction is always high.

* System can be expanded incrementally without huge upfront costs, nor need for accurate long term ridership projections spanning decades into the future. Costs approximately linearly proportional to tunnel length.

* Rubber wheels can handle much steeper slopes and can stop harder in emergencies.
*(note: this is a tradeoff for energy efficiency. Rubber wheels have higher rolling resistance. However, aero drag is main source of energy use at high speeds, and also the main energy efficiency advantage for small vehicles comes from only stopping once. Only bicycles are more energy efficient than this, and just barely so).​

* Stations can be located on surface in existing parking lots or in existing underground parking garages. Saves on construction cost and stair/escalator/elevator trip deep underground

* No need for users to memorize routes or use a somewhat complicated app. As simple to use as Uber or Lyft. Especially good for people visiting an area who aren't familiar with the local metro system.

* No extended waiting times at sketchy below ground stations, especially at night.

* Can accommodate passengers carrying lots of cargo. More room. Can take as much time as needed to load and unload vehicle without holding up other Loop users, thanks to parallel passenger boarding/unboarding, whereas on train and bus, everyone waits until everyone is ready to leave the station.

* Less noise pollution

* If a vehicle has an issue (repair needed, bodily fluid cleanup, mental health episode, etc) it can be conveniently removed from the stream in real time and parked on surface road. Cars ahead of it will be totally unaffected and cars behind will return to service as soon as they can all reverse out to the nearest exit or alternative tunnel, thus resulting in a temporary traffic holdup but not a major delay or loss of capacity.

* People with and without disabilities can board and exit vehicles at their own pace independently of each other. More accessibility and more convenience--everyone wins

* Vehicle fleet can be dynamically routed to where needed instead of fixed schedule. Helps with, for example, big events.

* Uses batteries instead of live grid connection, helping reduce the late afternoon and early evening electricity demand surge and save money on electricity costs and accelerate the viability of sustainable energy

* Increased resilience to natural disasters and war

* No ugly bridges

* Uses mass-produced vehicles that are cheap, easily replaceable on short notice, and leverage large workforce of mechanics who can work on cars instead of more specialized train/bus mechanics
 
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Whilst we're writing about Ferrari 308s; small cars and European roads, some observations (am I preaching to the converted?!)

We drive a BMW i3 and I-Pace in South Africa where the roads are similar to Aussie (ie between Europe and USA) I also drive a lot in Europe and lived in Britain for years.

Even here the i3 is a delight in town and the I-Pace better on the more open roads. The irony is when I was recently in Britain, I hired a small manual Peugeot 208 (?) (Tiny turbo engine; 6-speed box) and it was absolute hell in urban environments but very capable at freeway speeds (surprisingly quiet, stable and quick) In town it was grim with no bottom end power, a busy gearbox, light clutch, buzzy engine etc. Compared to the i3 it was just awful in traffic.

On the other hand I once had a Ferrari 308 Mondial (don't ask....) which was wonderfully smooth and tranquil in town but noisy, unstable (Ferrari could never solve the wandering on freeways), uncomfortable and not very quick out of town!

Go figure...

The point I'm trying to make is that a charming quality small car in town in the form of an EV would be perfect and if an ICE can be made freeway suitable, then an EV will be better. So an up-market urban EV with both traffic and open road performance will be very desirable - even to the well-heeled and could command a higher price (the German companies have already exploited this market a bit with fancy small ICEVs)

Millions would grab a cute, stylish small Tesla with all the usual attributes - bring it on! And soon Tesla will be able to churn these out very profitably. If they charge super rapidly and chargers become ubiquitous, then it doesn't even need a big battery
 
I looked for this in 2022.44.30.10 but can't find it. Anyone have this? This is super cool if implemented and I see how Tesla can calc this, but it is still super cool data.

I have had this in my 2021 Plaid for a while - the wind has been added about a month ago - but all the other stuff is there.

Although - on my car I have it set to percentage and not "miles" of range - so it tells me that I would have saved "X"% by going under 70mph or that drag strip mode cost me 4-5% on this trip.

Not sure if my Y perf. has this yet as I don't drive it very often.
 
I have had this in my 2021 Plaid for a while - the wind has been added about a month ago - but all the other stuff is there.

Although - on my car I have it set to percentage and not "miles" of range - so it tells me that I would have saved "X"% by going under 70mph or that drag strip mode cost me 4-5% on this trip.

Not sure if my Y perf. has this yet as I don't drive it very often.



going under 70mph - Now that's funny!!!
 
Boring Company Loop infrastructure in combination with autonomous electric vehicles (AEVs) is the best thing to happen to urban planning possibilities and biking and other types of muscle-powered transportation in the last century. I’ve spent most of the last ten years not owning a car while living in the US and was trying to solve the biking problem long before I ever got into Tesla.

I’ve analyzed this pretty deeply and I do not see a viable long term path for busses and trains. They are important for now but are on the way to obsolescence in most cases. Loop can offer personal rapid transit that beats traditional mass transit on every level. I’m working on a thesis to present to the community hopefully in the coming months. Here is the overview of the train and bus comparison.

I bring this up here in the investor thread because I believe Tesla and Boring are disrupting more than just ICEVs and fossil fuels, and the economic and social ramifications are staggering and overwhelmingly positive, as far as I can tell.

Advantages vs. trains (most of which also applies to busses)

Higher average speed. No stoppages. Shorter trip time. AEVs in a Loop is more like a train in continuous high speed circulation with individual vehicles entering and leaving dynamically. Like current highway system except no intersections, much more frequent on ramps and off ramps, and computer control.

More energy efficient and more materials efficient. Mainly due to continuous motion and higher percentage of seats in moving vehicle actually being occupied. Model Y with at least two passengers uses less energy per passenger-mile than any train service averages, and Ys aren’t even optimized for this use case.

Higher passengers per hour capacity in most cases. Trains and busses have lots of passengers per vehicle but long gaps between vehicles. Loop AEVs could have gaps as low as 1 second —> 3600 vehicles per hour per lane. Multiply by average number of passengers per vehicle. For very crowded routes, maybe 10 per veh —> 36k passengers per hr for just one tunnel. Many Loop tunnels can be built for price of one subway tunnel or even above ground train right of way or dedicated bus lane.

Vehicles are perfectly compatible with existing surface road system, solving last mile problem during early stage of scaling network. With aboveground autonomy, could do full point to point service.

Allows private personal transport for people willing to pay extra
(e.g. people who: don't want to ride in sketchy subway car at midnight, have kids who won't behave appropriately for a train, want to listen to loud music, want quiet and privacy to sleep/work/read/watch/game etc.)

Quieter, more comfortable ride. No bumps and no stoppages better for people with back pain, nausea and similar medical issues.

Riders never need to switch vehicles en route to destination

Less waiting time for passengers prior to boarding

Greater station density in a neighborhood resulting in shorter first and last mile legs of a given journey. Small-footprint aboveground stations or just holes in the ground.

Costs MUCH less (I'm seeing some estimates that just the tracks, electrical equipment and signalling equipment alone cost about $9 million per mile for trains, which is more than the cost of a tunnel bored by Prufrock)

Faster planning and construction (No gigantic expensive underground stations. Aboveground access points can be in parking lots and parking garages, Tunnel can be narrower (yes, London Underground and some other older networks are just as narrow, but these are legacy systems that are not required to meet modern safety and accessibility standards). Also, No need to build and maintain train tracks. Can be accomplished more easily in a democracy bc it's doable within an elected leader's term

Politics less of a threat to construction. NIMBYs have less to complain about. No more endless debates about public and private transit. Cyclists and pedestrians happier too.

No hazardous high voltage live power lines

No danger of people being hit by trains arriving at the platform

More precisely scalable to demand for a particular route while retaining benefits of standardization and economies of scale from mass production. Also scalable even throughout day such that vehicle payload fraction is always high.

System can be expanded incrementally without huge upfront costs, nor need for accurate long term ridership projections spanning decades into the future. Costs approximately linearly proportional to tunnel length.

Rubber wheels can handle much steeper slopes and can stop harder in emergencies. (note: this is a tradeoff for energy efficiency. Rubber wheels have higher rolling resistance. However, aero drag is main source of energy use at high speeds, and also the main energy efficiency advantage for small vehicles comes from only stopping once. Only bicycles are more energy efficient than this, and just barely so).

Stations can be located on surface in existing parking lots or in existing underground parking garages. Saves on construction cost and stair/escalator/elevator trip deep underground

No need for users to memorize routes or use a somewhat complicated app. As simple to use as Uber or Lyft. Especially good for people visiting an area who aren't familiar with the local metro system.

No extended waiting times at sketchy below ground stations, especially at night.

Can accommodate passengers carrying lots of cargo

Less noise pollution

If a vehicle has an issue (repair needed, bodily fluid cleanup, mental health episode, etc) it can be conveniently removed from the stream in real time and parked on surface road. Cars ahead of it will be totally unaffected and cars behind will return to service as soon as they can all reverse out to the nearest exit or alternative tunnel, thus resulting in a temporary traffic holdup but not a major delay or loss of capacity.

People with and without disabilities can board and exit vehicles at their own pace independently of each other. More accessibility and more convenience--everyone wins

Vehicle fleet can be dynamically routed to where needed instead of fixed schedule. Helps with, for example, big events.

Uses batteries instead of live grid connection, helping reduce the late afternoon and early evening electricity demand surge and save money on electricity costs and accelerate the viability of sustainable energy

Increased resilience to natural disasters and war

Minimal pandemic risk, especially for diseases communicable by air, bodily fluids, or personal contact

No chance of catastrophic derailing accidents

No ugly bridges

Uses mass-produced vehicles that are cheap, easily replaceable on short notice, and leverage large workforce of mechanics who can work on cars instead of more specialized train mechanics
Compelling case for having no trains in the future. Stuff we don't usually consider, like this one which took me about 5 reads for it to sink in.

the main energy efficiency advantage for small vehicles comes from only stopping once. Only bicycles are more energy efficient than this, and just barely so

Or that AEVs can do steeper hills. Stuff I have never considered.
 
FSD and robotaxis will be a singularity and it's difficult to predict a future beyond that point. What we do know is that a robotaxi will be more convenient and cheaper to operate than a privately owned vehicle for many use-cases. It remains to be seen how many of these privately owned cars will be replaced by one robotaxi. At 10% average daily utilization for individually owned cars, let's assume one robotaxi replaces the sale of 5 cars. A manufacturer who can output 2 million robotaxis per year will displace the sale of 10 million cars. "Disruption" will take on a whole new meaning. But it's unlikely that it will happen in all markets at the same time. We are already seeing quite a lot of protectionism in action to slow down BEV adoption and protect the status quo. Once robotaxis wrecked one market, there will be a lot of resistance in others.
At least in the US, a significant adoption rate for robotaxi will take a very long time especially outside of urban areas where the convenience makes more sense. With FSD's many challenges and limitations today we're at least a few years before the technology (hardware and software) is adequate for robotaxi's. Then several years after that for ramp up in specific use cases like urban areas were the business model will work best. For suburban America it will be a long time coming but that shouldn't be a surprise to anyone.
 
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At least in the US, a significant adoption rate for robotaxi will take a very long time especially outside of urban areas where the convenience makes more sense. With FSD's many challenges and limitations today we're at least a few years before the technology (hardware and software) is adequate for robotaxi's. Then several years after that for ramp up in specific use cases like urban areas were the business model will work best. For suburban America it will be a long time coming but that shouldn't be a surprise to anyone.
In the suburbs it will be a supplement to individual ownership. Maybe a family can get by with 1 car if RTs are a realistic option. Especially for people with teenagers.