Elon Musk: Tesla service development is going mobile

The Tesla (TSLA) CEO Elon Musk said in the company conference call yesterday that Tesla´s service development is going mobile, more and more in the future.

-Our mobile service is part of the growing service development, while this is the best way to reach our customers, Musk said.

The company also said it has opened 25 new service locations globally and that they measure the new locations by traffic and driving time. The need for service development is essential while the Tesla fleet have doubled in a year and the growth expectations are also showing the same trend. Also service needs to be scaled.

According to Musk, the car service operations is one of the main drivers for the new car sales. For example during the Q2 period this year, the company generated orders at a high pace.

Tesla is also developing its automation within the cars and for example the automatic stopping at the stop signs and traffic lights is going to part of the new safety automations. The Model 3 has reached the highest ever safety standards in the US Safety Assist Category, the company said.

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Tesla´s Q2 deliveries 95 356 – on track with China factory & Model Y

The US electric car manufacturer Tesla (TSLA) announced its second quarter results, which show that the company in on track with the Shanghai Gigafactory plant and with the new model, Model Y. It means the new factory would be ready by the end of this year and the new model by the fall 2020.

The company said its Q2 deliveries were 95 356 vehicles and they reach a record production of 87 048 vehicles. During the period Model 3 deliveries were 77 634 vehicles and the average selling price (ASP) was around 50.000 dollars. Tesla also said it expects its weekly production reach 10.000 by the end of the year. The total annual production expectation remained at 360.000- 400.000 vehicles.

The free cash flow was 614 million dollars. The car revenue was 5,3 billion dollars compared to 3,7 billion dollars in the previous quarter. The loss of car operations was 167 million dollars compared to 521 million dollars in the previous quarter and 621 million dollars a year earlier. The CEO Elon Musk said in the conference call that he expects the company to turn profitable during the rest of the year.

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Tesla to make record deliveries in Q2?

The US electric cars manufacturer Tesla (TSLA) is expecting to make a record deliveries of Tesla cars during the second quarter 2019. The news is based on the company internal email from CEO Elon Musk to employees in which Mr Musk says that the company has  a “good chance” to exceed the deliveries achieved during the last quarter of 2018.

According to the email, the company may be in the position to deliver over 90.700 cars that the company delivered during the final quarter of last year. This would also mean that the daily production would be 900 Model 3 cars during this week.

The Tesla shares one-year return is down over 30 %. Today the shares were trading up 0,69 % to 194,05 dollars.

 

 

 

 

 

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Tesla: Deliveries 63000 vehicles during the first quarter

 

The US electric car manufacturer Tesla (TSLA) produced approximately 77,100 total vehicles, consisting of 62,950 Model 3 and 14,150 Model S and X during the first quarter 2019.

– Deliveries were approximately 63,000 vehicles, which was 110% more than the same quarter last year, but 31% less than last quarter. This included approximately 50,900 Model 3 and 12,100 Model S and X,  Tesla said in the press release.

– Because of the lower than expected delivery volumes and several pricing adjustments, we expect Q1 net income to be negatively impacted. Even so, we ended the quarter with sufficient cash on hand.

Tesla said that in North America, Model 3 was agaon the best-selling mid-sized premium sedan, selling 60% more units than the runner up.

– We reaffirm our prior guidance of 360,000 to 400,000 vehicle deliveries in 2019, the company said.

Tesla shares were down today in New York trading by 7,75 % to 269,19 dollars. The company´s market cap is 46,15 billion dollars.

 

 

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Tesla: Q4 operating income stable – positive cash flow beyond Q1 2019

According to the Tesla (TSLA) CEO Elon Musk last year was the most pivotal year in Tesla’s history. Mr Musk commented the year in the shareholder letter conserning 2018 and Q4 figures.

– During our Model 3 production ramp, we went through significant challenges with the battery module line at Gigafactory 1 in Nevada, and later with our general
assembly line in Fremont. Thanks to the hard work and ingenuity of our
manufacturing teams, by mid-2018 we successfully overcame these
challenges and stabilized Model 3 production at high volumes, he said on Wednesday.

Tesla´s  Q4 figures:

– Q4 operating income stable compared to Q3 at $414M, operating margin of 5.7%
– Operating cash flow less capex improved from Q3 to $910M in Q4
– Cash and cash equivalents of $3.7B at Q4-end, increased by $718M in Q4
– Q4 GAAP net income of $139M impacted by $54M non-cash charge
– Model 3 GAAP and non-GAAP gross margin remained stable at >20% in Q4

Elon made his estimates of the Model 3 production this year and commented the production shift.

– Model 3’s production rate progressively improved through Q4, with December 2018 being our highest volume month ever. In our Fremont facility, we are now past the steep portion of the production S-curve, and we expect our production rate to continue to
gradually improve. Every part of the Model 3 production process has demonstrated over a 24-hour period the ability to produce at an extrapolated rate of 7,000 vehicles per week. By the end of this year, we expect to be able to produce Model 3 at this rate on a
sustained basis, he stated.

– In Q4, we delivered 27,607 Model S and Model X vehicles to customers. For the full year, we delivered 99,475 Model S and Model X vehicles, which was in line with our guidance. We recently stopped taking orders for the 75 kWh versions of Model S and Model X and
will focus on the longer-range versions of these flagship products instead, with the recent introduction of a 310 mile range base Model S and 270 mile range base Model X, he reminded.

– In total, we are expecting to deliver 360,000 to 400,000 vehicles in 2019, representing a growth of approximately 45% to 65% compared to 2018. In this range, we are expecting to have positive GAAP net income and to generate positive free cash flow
(operating cash flow less capex) in every quarter beyond Q1 2019. We believe these results will be substantially driven by our restructuring action and the ongoing financial discipline with which we are managing the business, Elon said.

– Our 2019 capex, the vast majority of which will be to grow our capacity and develop new vehicles, is expected to be about $2.5 billion. We believe this amount should be sufficient to continue to develop our main projects, such as Gigafactory Shanghai, Model Y and Tesla Semi, as well as for the further expansion of our Supercharger, service and retail networks. We expect to arrange financing through local banks in China to fund most of the capex for Gigafactory Shanghai, he said.

Tesla published its figures after the Wall Street trading, but the company shares closed higher to 302 dollars, up 3,80 %.

 

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Tesla: Focus on standard-range Model 3

Tesla has today published a blog and according to it, the company will cut workforce by 7 % in order to meet the targets regarding the Model 3 production and focusing also more in mid-range models.

-Starting around May, we will need to deliver at least the mid-range Model 3 variant in all markets, as we need to reach more customers who can afford our vehicles. Moreover, we need to continue making progress towards lower priced variants of Model 3.
Right now, our most affordable offering is the mid-range (264 mile) Model 3 with premium sound and interior at $44k. The need for a lower priced variants of Model 3 becomes even greater on July 1, when the US tax credit again drops in half, making our car $1,875 more expensive, and again at the end of the year when it goes away entirely, the CEO Elon Musk writes.

-Sorry for all these numbers, but I want to make sure that you know all the facts and figures and understand that the road ahead is very difficult. This is not new for us – we have always faced significant challenges – but it is the reality we face, he continues.

– As a result of the above, we unfortunately have no choice but to reduce full-time employee headcount by approximately 7% (we grew by 30% last year, which is more than we can support) and retain only the most critical temps and contractors. Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months. Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture the standard range (220 mile), standard interior Model 3 at $35k and still be a viable company. There isn’t any other way, he says.

Tesla shares were trading down, -9,9 % to 312,79 dollars, after the blogging in Wall Street on Friday. Company also reminded that it made 4 % profit during the Q3. The last quarter figures of the year 2018 are not yet published.

– In Q4, preliminary, unaudited results indicate that we again made a GAAP profit, but less than Q3. This quarter, as with Q3, shipment of higher priced Model 3 variants (this time to Europe and Asia) will hopefully allow us, with great difficulty, effort and
some luck, to target a tiny profit, he estimated.

 

 

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Elon Musk: 1 million cars by 2020

 

Tesla Motors (TSLA) CEO Elon Musk said that he still believes the target of 1 million cars by 2020 is relevant. He confirmed his earlier estimate of the growth during the conference call this week.

The company announced last year figures, which stated that the company is
targeting a weekly Model 3 production rate of 2,500 by the end of Q1 and 5,000 by the end of Q2. Tesla is also focused on achieving its target of 25% gross margin for Model 3 after company´s production stabilizes at 5,000 cars per week.

In the company press release Tesla said it will be the best manufacturer of automotive industry. The Model 3 reservations remained stable during the last quarter of the 2017, but in recent weeks the growth has continued. Combined Model S and Model X deliveries increased by 10 % during the last quarter, which was also an 28 % increase from year earlier.

During the last quarter Tesla continued to open new stores and service locations and now there are 330 locations globally. There are 1128 Supercharger stations globally at the moment.

In the outlook statement Elon Musk expects  the company  quarterly operating income to turn sustainably positive at some point in 2018.

 

 

 

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