Tesla to build the new factory in Berlin, Germany

The US auto tech company  Tesla (TSLA) CEO Elon Musk said today that the next new vehicle factory, Gigafactory 4, will be build in Germany, near the “Berlin area”. According to him, the new plant will include also engineering and design centres for Tesla.

The new factory plant has been in the headlines for some time now and on Tuesday Mr. Musk revealed it in an auto event in Germany. The new site would focus on building the Model 3 and Y vehicles and the target opening of the factory is by the end of 2021.

In Europe Tesla has at the moment the Tilbury factory in the Netherlands, where the company  is having local assembly, quality testing and distribution for the Model S and X vehicles sold in the EU.

In the US, Tesla is having the Fremont factory in California, the Gigafactory 1 in Nevada and Gigafactory 2 in New York. The latest factory is located in Shanghai, China for the Asia markets.

Tesla shares closed up 1,40 % to 349,93 dollars in New York on Tuesday.

 

 

 

 

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US stocks down – manufacturing data and trade tariffs

The US equity markets were clearly down in New York on Wednesday. The global growth concerns related to recent manufacturing and car sales data were the primary reasons. Dow Jones lost 1,86 % to 26078 points, the S&P 500 -index 1,79 % to 2887 points and the technology Nasdaq-index declined 1,56 % to 7785 points.

The US manufacturing data showed the global growth concern is having impact on the US economy. The US China trade talks have put pressures on the US manufacturing and for example the Ford Motor Company released its car sales figures, which were showing a decline in the third quarter.  Also the declining figures in German manufacturing is one part of the global concern.

Tesla (TSLA) also announced its third quarter deliveries, which were approximately 97,000 vehicles, according to the company release. According to Tesla the total deliveries were at record level, but according to Reuters the deliveries were down to Wall Street expectations and the share fell over 6 % after the bell. Last week the CEO Elon Musk was quoting that the company may reach a six-figures deliveries.

The US also announced a new trade tariffs to the EU related to the WTO Airbus decision. The new tariffs would include 7,5 billion dollars worth of goods. According to Bloomberg this would mean a new 10 % tariffs to aircraft goods and 25 % tariffs on farming and other industrial items. The new tariffs would be effective by October the 18th.

In the UK the FTSE -index also declined 3,23 % to 7122 points. The UK Prime Minister Boris Johnson delivered the new Brexit proposal to the EU. The country is aiming the EU leaders summit on the October 17th in order to seek the deal with the EU.

In Germany the DAX-index closed down 2,76  % to 11925 points and in France the CAC 40-index declined 3,12 % to 5422 points.

 

 

 

 

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Tesla considering Germany as a new factory site

The US electric car manufacturer Tesla (TSLA) is considering Germany´s North Rhine-Westphalia as a possible factory site in Europe. According to Rheinische Post the company has had negotiations with the local authorities regarding the issue.

According to Bloomberg, Tesla has said that Germany would be the leading choice for the European Gigafactory.

North Rhine-Westphalia is the biggest state in Germany and in the middle of German industrial manufacturing sites. The local area capitol is Dusseldorf.

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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.

Business Finance

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 to raise new capital totally 2,3 billion dollars

20190207_154953The US Tesla(TSLA) announced yesterday evening that it will raise new capital totally 2,3 billion dollars. The issue means that it includes 650 million dollars new shares and 1,35 billion dollars convertible debt and option to raise more 15%.

The news seems to be relief to investors while the Q1 figures were somewhat disapointing with the capital structure. Investors have commented the decision by securing the scaling of the new Model Y,which was unveiled in March and which is going to utilise the Model 3 platform, and the China production ramp up.

Goldman Sachs and Citigroup are managing the offer. Tesla shares closed higher on Thursday to 244,10 dollars in New York.

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