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Tesla is changing up its retail strategy yet again, this time deciding to end online sales of the long-awaited $35,000 version of its Model 3 sedan (Warning: source may be paywalled; alternative source). The move comes just over a month after the company announced that the $35,000 version was finally coming to market. The New York Times reports: In a blog post late Thursday, Tesla said customers wanting the $35,000 version of the Model 3 would have to make the purchase by phone or in person at one of its stores. The cheapest Model 3s ordered online will now include Tesla's Autopilot driver-assistance system and a longer battery range, features that increase the price to $39,500. The blog post said Tesla was making the changes to "simplify vehicle choices and to make Autopilot more affordable." Such a configuration would previously have cost $40,500, it said.

A Tesla spokesman said the change would allow the company to produce one version of the Model 3 and use software to limit the battery range and turn off features such as heated seats for customers who wanted the $35,000 model. A longer range and additional features will be switched on in the $39,500 car, known as the Standard Plus model. Previously, Tesla planned to put a smaller battery pack in the basic model and a larger one in the Standard Plus, the spokesman said. Tesla's announcement also said it would begin leasing the Model 3, but would not offer customers the option to buy the cars after their leases expired, a departure from the typical industry practice and its own policy on other models. Tesla said it aimed to upgrade Model 3s returned after a lease to allow them to drive themselves, with no human at the wheel, and be deployed in a driverless taxi fleet. The company acknowledged that the technology for driverless taxis was still in development and would need to be approved by safety regulators before such a business could begin.

Last night, Tesla CEO Elon Musk unveiled the company's brand new electric SUV, the Model Y. The car is only slightly larger than the Model 3 and shares 75% of its parts, leaving many people wanting more. But, as USA Today reports, "The ho-hum reaction to Tesla's new electric SUV is, oddly enough, exactly what the company needs. [F]or a company that needs a little less pizzazz and a little more substance to make good on its promise to become a sustainable force in the auto industry, the Model Y hit the right marks." From the report: It's essentially a crossover version of the Tesla Model 3 compact car, bearing the design hallmarks of a hatchback and sharing the same architectural platform as its car sibling. That Tesla devotees weren't rewarded with sizzling new features on the Model Y illustrates that the company is getting serious about selling vehicles. After all, a compact SUV is precisely what Americans want: a driveable vehicle that puts safety first and flash second. Versions with five and seven seats will be available, with starting prices ranging from $39,000 for the base version to $60,000 for a performance model. If Musk had tried to break new technological barriers or adopt outlandish styling on the Model Y, he would have risked making the vehicle too difficult to manufacture and unappealing to conventional SUV buyers.

The first-available model will start at $47,000 and arrive in fall 2020. You can place a refundable deposit of $2,500 to secure your place in line when the vehicle becomes available. The base model of the Model Y -- the $39,000 version -- won't be available until "sometime in 2021," Musk said. Families can make the Model Y their primary vehicle since the battery range goes from 230 miles to 300 miles depending on the version. That stacks up well against other EVs on the market, such as the Chevrolet Bolt's 238 and the Hyundai Kona's 258. And while techies might not find the Model Y exhilarating, it will come equipped with software and sensors capable of autonomous driving, whenever it becomes legal. But buyers will have to pay for the system upgrade of $3,000 to $5,000.

AmiMoJo writes: Tesla has been selling "full self-driving" capability since 2016, promising that "you will be able to summon your Tesla from pretty much anywhere," and that "once it picks you up, you will be able to sleep, read or do anything else en route [sic] to your destination." Last week Tesla shifted the goalposts, redefining "full self-driving" as a number of Level 2 driver assistance features that were already available, and a few new tricks to be delivered later. All will require a qualified driver behind the wheel, paying attention at all times and ready to take over if the car can't handle the situation. Worse, owners who bought the previous full self-driving feature paid $8,000 for it. Tesla is now offering owners who bought their cars prior to the change the same package for $5,000. Owners who paid the $3,000 higher price are unsure if the previously promised technology has been abandoned and Level 2 is now the most they can expect.

AmiMoJo writes: Tesla has been selling "full self-driving" capability since 2016, promising that "you will be able to summon your Tesla from pretty much anywhere," and that "once it picks you up, you will be able to sleep, read or do anything else en route [sic] to your destination." Last week Tesla shifted the goalposts, redefining "full self-driving" as a number of Level 2 driver assistance features that were already available, and a few new tricks to be delivered later. All will require a qualified driver behind the wheel, paying attention at all times and ready to take over if the car can't handle the situation. Worse, owners who bought the previous full self-driving feature paid $8,000 for it. Tesla is now offering owners who bought their cars prior to the change the same package for $5,000. Owners who paid the $3,000 higher price are unsure if the previously promised technology has been abandoned and Level 2 is now the most they can expect.

"For anyone who thought that there was too much Tesla news this weekend, I've got some bad news for you," writes long-time Slashdot reader Rei, sharing new information gleaned from a series of tweets.

"Elon Musk just announced the unveiling of the Model Y SUV on March 14th at Tesla's LA Design Studio." A surprising number of details were revealed, including non-falcon doors, a similar appearance to the Model 3, and pricing about 10% more than a Model 3, with slightly lower range, due to the increased mass and cross section.

The unveiling will not include the Tesla pickup truck; that will be later this year. Model Y is to share 75% of its hardware with Model 3 to simplify the development process, with volume production targeted for late 2020, and initial production in early 2020. Musk also stated: "First public Tesla V3.0 Supercharger Station goes live Wed 8pm" (V3 is the much awaited new generation of higher power, cheaper to operate Superchargers).
"Personally, I'm most excited by the Tesla Truck," Musk posted on Twitter. "Maybe it will be too futuristic for most people, but I love it."

Tesla's now taking orders for Model 3's with a "full self-driving capability" -- meaning "automatic driving on city streets." CNN reports that experts on self-driving technology "say CEO Elon Musk is playing fast and loose with definitions, overselling the technology and potentially creating safety issues." Experts say Tesla's "full self-driving" feature is really a partial self-driving feature that handles minor driving tasks such as keeping pace with other cars on a highway and still requires diligent human oversight. To most autonomous vehicle experts, "full self-driving" means a car in which a person could safely fall asleep behind the wheel, and the steering wheel and pedals aren't even needed...

Dean Pomerleau, of Carnegie Mellon University, who in 1995 drove a minivan that steered itself across the country, told CNN Business he has "grave concerns" about Tesla's practices on autonomous driving. "Claiming its vehicles will soon be 'feature complete' for full self-driving is one more step in the unconscionable practices that Tesla is already engaged in with Autopilot -- overselling its capabilities and reliability when marketing its vehicles and then blaming the driver for not reading the manual and paying constant attention when the technology inevitably fails," Pomerleau said.
CNN notes a 2018 study which found that 71% of drivers believe they could already purchase a self-driving car today -- despite the fact that currently there are no such fully-autonomous vehicles. "Experts warn that this lack of understanding could be deadly as humans may put too much trust in systems like Tesla's, leading to crashes...."

"A Tesla spokeswoman declined to comment on details around the automatic driving option, and pointed CNN Business to fine print on Tesla's order page that tells buyers the currently enabled features require 'active' driver supervision and do not make the vehicle autonomous."

In a call with reporters Thursday, Tesla CEO Elon Musk said the company is finally launching the long-promised standard Model 3 with a base price of $35,000. "The automaker is now making several new versions of the Model 3 available with a shorter range and new interior options," reports Electrek. From the report: Today, Tesla sent an email to its retail stores the details of the announcement of the new options being available to order in the U.S. today and available as soon as next month. All the details are expected to become available in the next hour, but here's what we know so far: Customers are now able to order the $35,000 Model 3 with a standard interior and standard battery pack enabling 130mph top speed and 5.6s 0-60s acceleration. Tesla is also making a new "Partial Premium Interior" with better seats than the standard interior available with a different "standard range plus" battery pack for a $2,000 premium. The Model 3 Standard Range Plus results in 240 miles of range, a top speed of 140mph, 0-60mph acceleration of just 5.3 seconds. Tesla says that deliveries are starting within the next 2 to 4 weeks depending on the configuration in the U.S. In Europe, Musk said it will be available to order within the "next 3 to 6 months." Slashdot reader Rei provides additional details: The new unveiling introduced a whole slew of variants, including (price, range, top speed, 0-60, premium):

SR: $35K, 220 miles, 130mph, 5.6 seconds, non-PUP
SR+: $37K, 240 miles, 140mph, 5.3 seconds, partial-PUP
MR: $40K, 264 miles, 140mph, 5.2 seconds, PUP
LR: $43K, 325 miles, 140mph, 5.0 seconds, PUP
AWD: $47K, 310 miles, 145mph, 4.5 seconds, PUP
P: $48K, 310 miles, 162mph, 3.2 seconds, PUP

Pricing, ranges, and features have by and large significantly surpassed initial promises. For example, the Long Range (LR) variant was supposed to be a $9K premium over SR, with the Premium Upgrades Package another $5k, but now PUP is included in LR and the price difference is only $8K. Range and performance specs have been upgraded not just on new vehicles, but will also be upgraded on existing vehicles, where applicable, via software update. The price for Autopilot has dropped from $5K to $3K, and some features once planned to be premium-only -- including the glass roof and auto dimming, power folding, heated side mirrors -- are now standard. The Model S and X product line has also been modified, with higher performance at the top end and lower prices at the bottom.

To achieve cost savings, in addition to production optimizations and the recent layoffs, Tesla announced an unexpected strategy: they're closing most of their stores. Sales will only be conducted online. Instead of test drives, cars can be returned within 7 days or 1,000 miles at no charge. "Quite literally, you could buy a Tesla, drive several hundred miles for a weekend road trip with friends and then return it for free," Tesla said in their blog post.

Rei writes: Yesterday, Tesla reported their 4th quarter earnings, representing their second consecutive profit. While earnings per share missed analyst expectations ($1.93 vs. $2.20), revenue beat expectations by around $100 million and free cash flow ($910 million) was more than double the First Call consensus of $395 million. Model 3 margins were maintained at an impressive 20% level despite significant reductions in the average sale price in Q4; labor hours fell by 20% in Q4 and 65% in the second half of 2018 alone. With $3.7 billion in the bank, Tesla is now well positioned to repay its $920 million March convertible bond obligations in cash. Severance costs and an increase in inventory in transit due to shipments to Europe and China are expected to hurt Tesla's profits in Q1, but guidance for Q2 onward in 2019 is strong. Highlights planned for 2019 include introduction of faster V3 Supercharging early in the year, Model Y and pickup unveiling in the middle of the year, base Model 3 unveiling in the middle of the year, and full-vehicle production in the under-construction Shanghai Gigafactory by the end of the year -- the first wholly foreign-owned auto plant in China, which has seen extensive governmental support.

Despite a generally positive earnings report and conference call, the atmosphere was soured by the news that Tesla's 11-year Tesla veteran CFO Deepak Ahuja was re-retiring. Having previously retired in 2015, Deepak returned to Tesla in 2017 to replace outgoing CFO Jason Wheeler. Ahuja will remain with the company for several months as CFO and then become a senior advisor, while his protege Zach Kirkhorn fills his role. The market reacted negatively to the news, with Tesla trading down 4.5% premarket.

Rei writes: When Tesla announced late last year that it was targeting sustained profitability in the second half of 2018, reaffirming this target throughout the year, the markets reacted with skepticism. Indeed, despite repeated insistence that the company had no need for a capital round, news analysts have treated the concept of Tesla dilution to raise more capital as inevitable and urgent to pay off convertible bonds next spring, even suggesting insidious theories that the reason it hadn't was that it "couldn't."

Well, today Tesla put the doubts to rest with a blockbuster Q3 report -- not simply eking out a profit and small free cash flow growth, but $2.92 per-share profit and $881 million free cash flow -- almost raising the entire value of their convertible bond debt in a single quarter. While many were skeptical about Tesla's claims that it would go from near zero profit margin on Model 3s to their claimed target of 15%, Tesla instead hit a 20% margin on the Model 3 (now the highest-revenue car in the U.S.), with a 25.8% overall automotive gross margin. This was all achieved with only $52 million worth of zero-emission vehicle credits claimed this quarter. While Tesla bears will likely claim that this quarter was a one-off that won't be repeated, Tesla reiterates guidance for sustained profitability from herein, barring a force majeure event.

Rei writes: When Tesla announced late last year that it was targeting sustained profitability in the second half of 2018, reaffirming this target throughout the year, the markets reacted with skepticism. Indeed, despite repeated insistence that the company had no need for a capital round, news analysts have treated the concept of Tesla dilution to raise more capital as inevitable and urgent to pay off convertible bonds next spring, even suggesting insidious theories that the reason it hadn't was that it "couldn't."

Well, today Tesla put the doubts to rest with a blockbuster Q3 report -- not simply eking out a profit and small free cash flow growth, but $2.92 per-share profit and $881 million free cash flow -- almost raising the entire value of their convertible bond debt in a single quarter. While many were skeptical about Tesla's claims that it would go from near zero profit margin on Model 3s to their claimed target of 15%, Tesla instead hit a 20% margin on the Model 3 (now the highest-revenue car in the U.S.), with a 25.8% overall automotive gross margin. This was all achieved with only $52 million worth of zero-emission vehicle credits claimed this quarter. While Tesla bears will likely claim that this quarter was a one-off that won't be repeated, Tesla reiterates guidance for sustained profitability from herein, barring a force majeure event.

Rei writes: When Tesla announced late last year that it was targeting sustained profitability in the second half of 2018, reaffirming this target throughout the year, the markets reacted with skepticism. Indeed, despite repeated insistence that the company had no need for a capital round, news analysts have treated the concept of Tesla dilution to raise more capital as inevitable and urgent to pay off convertible bonds next spring, even suggesting insidious theories that the reason it hadn't was that it "couldn't."

Well, today Tesla put the doubts to rest with a blockbuster Q3 report -- not simply eking out a profit and small free cash flow growth, but $2.92 per-share profit and $881 million free cash flow -- almost raising the entire value of their convertible bond debt in a single quarter. While many were skeptical about Tesla's claims that it would go from near zero profit margin on Model 3s to their claimed target of 15%, Tesla instead hit a 20% margin on the Model 3 (now the highest-revenue car in the U.S.), with a 25.8% overall automotive gross margin. This was all achieved with only $52 million worth of zero-emission vehicle credits claimed this quarter. While Tesla bears will likely claim that this quarter was a one-off that won't be repeated, Tesla reiterates guidance for sustained profitability from herein, barring a force majeure event.

In a blog post on Monday, Tesla said that the Model 3 has been deemed to have the lowest probability of occupant injury than any vehicle ever tested by the National Highway Traffic Safety Administration (NHTSA). The Drive reports: Since 1979, the regulatory body has implemented the New Car Assessment Program (NCAP) which, through a series of tests, ultimately produces a rating for a new-to-market vehicle based on how well it performs in a variety of safety-related tests. Over time the test has evolved to assess the injury to occupants based on data gathered for front, side, and rollover crashes. During the NHTSA's previous tests of Tesla vehicles, the Model S and Model X, respectively, became the two vehicles with the lowest probability for injury, outpacing all other automakers. The Model 3 has now widened that gap as it takes the new number-one position on the leaderboard for the safest overall vehicle for occupants.

The California-based auto manufacturer acknowledges the car's low center of gravity as a major factor in its gracious performance in rollover tests. Similar to The Model 3 places its heaviest component, the battery pack, into the floor, so this helps improve the overall stability and rigidity of the car, making it perform excellently in rollover crashes. Additionally, the automaker gives a subtle nod to its engineering team for their design of the vehicle's crumple zones. Working in conjunction with airbags placed in the front of the vehicle and at the occupant's knees, the Model 3 was able to safely control the deceleration of passengers in frontal crash tests. The NHTSA's assessment involved the Model 3 Long Range Rear-Wheel Drive variant, however, Tesla states that it believes other trims will receive similar results when tested.

Tesla's model 3 is now one of the five top-selling sedans in America (while sales of the Mercedes-Benz C-Class are down 28 percent through September), Bloomberg reports. Elon Musk tweeted out a link to their article on Thursday -- but it was his other tweet, a satirical criticism of the SEC, that made headlines. MarketWatch reports: Tesla shares ended 7% lower on Friday as Wall Street reacted to Musk's tweet seemingly out of nowhere late Thursday about the "Shortseller Enrichment Commission." Musk also tweeted that day that short sellers were "value destroyers" and should be illegal. Friday's losses for Tesla "produced more than half a billion in paper profit for the shorts," S3 Partners LLC, which tracks real-time short interest data, said in a note. Since news of the Musk's settlement with the SEC, shorts are up $941 million, S3 Partners said. "Clearly short positions are building in the wake of strong selling by longs, as Musk demonstrates a refusal to keep away from controversy," the note said.
The article notes that last Saturday the SEC settled charges that Musk misled investors with a tweet about taking Tesla private. "Terms of the settlement included requiring Tesla to rein in Musk's social-media communications, but it was unclear when Tesla intends to implement that.... The settlement has yet to be court-approved."

On Friday Musk was back on point, tweeting out the news that Tesla owners "can refer someone to buy a Tesla & get any image they want laser etched in glass & sent to deep space for millions of years."

Today, we have learned that two executives have left Tesla. According to a filing with the Securities and Exchange Commission, Tesla's newly hired chief accounting officer Dave Morton decided to resign because "the level of public attention placed on the company as well as the pace within the company have exceeded [his] expectations." He added: "I want to be clear that I believe strongly in Tesla, its mission, and its future prospects, and I have no disagreements with Tesla's leadership or financial reporting." Tesla's human resources chief Gaby Toledano also announced that should would be leaving the company after taking a leave of absence last month. CEO Elon Musk wrote that Toledo "has been on leave for a few months to spend more time with her family and has decided to continue doing so for personal reasons. She's been amazing and I'm very grateful for everything she's done for Tesla."

These departures certainly have had an impact on Tesla's stock, which is down more than six percent to $262, but an interview Elon Musk conducted with Joe Rogan may have caused the most damage. While discussing a wide range of topics including his tweeting behavior, his Boring Company's flamethrowers, and "neuralink" devices, the Tesla CEO openly smoked a mixed tobacco and marijuana cigarette, sending the internet into a frenzy. Ars Technica reports: Morton joined Tesla on August 6, one day before Musk's infamous tweet claiming that he had "funding secured" to take Tesla private. Musk was forced to abandon the plan a couple of weeks later. Not only did Musk not have any kind of written funding deal, many Tesla investors saw little upside in approving a deal that would reduce Tesla's transparency and the liquidity of Tesla stock. Morton didn't explicitly mention last month's buyout saga in his statement explaining his departure. But a lot of the "public attention" Tesla received during Morton's brief tenure was focused on the possibility of Tesla going private. It's safe to assume that members of Tesla's finance team were working overtime on issues related to the proposal during Morton's month at Tesla. It's worth noting that marijuana is legal in California (and several other states) if you are 21 or older, but the federal government still strictly prohibits the Schedule 1 substance.

UPDATE: You can watch/listen to the nearly three-hour-long interview here. Rogan manages to pick Musk's brain in great detail and in a refreshingly laid-back manner. We highly recommend a listen if you want to learn more about Musk's ambitions and thought process.

Weeks after Tesla CEO Elon Musk expressed his intentions to take his company private, on late Friday, he said investors have convinced him that he shouldn't take the company private, so the firm will remain on the public stock markets. From a report: The eccentric and sometimes erratic CEO said in a statement late Friday that he made the decision based on feedback from shareholders, including institutional investors, who said they have internal rules limiting how much they can sink into a private company. Musk met with the electric car and solar panel company's board on Thursday to tell them he wanted to stay public and the board agreed, according to the statement. In a blog post, Mr. Musk shared the rationale behind his decision, to which he arrived after speaking with investors, both large and small, banks and others. He said: Given the feedback I've received, it's apparent that most of Tesla's existing shareholders believe we are better off as a public company. Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company. There is also no proven path for most retail investors to own shares if we were private. Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was "please don't do this."

I knew the process of going private would be challenging, but it's clear that it would be even more time-consuming and distracting than initially anticipated. This is a problem because we absolutely must stay focused on ramping Model 3 and becoming profitable. We will not achieve our mission of advancing sustainable energy unless we are also financially sustainable. That said, my belief that there is more than enough funding to take Tesla private was reinforced during this process.

According to CNBC, citing current and former Tesla employees and LinkedIn, Apple has hired scores of employees from Tesla since late 2017, including manufacturing, security and software engineers, as well as supply chain experts. The report mentions that they're hiring Tesla employees not just for the company's Project Titan self-driving car project, but for its other products too. From the report: In 2018 so far, LinkedIn data shows Apple has hired at least 46 people who worked at Tesla directly before joining the consumer electronics juggernaut. Eight of these were engineering interns. This year Apple has also hired former Tesla Autopilot, QA, Powertrain, mechanical design and firmware engineers, and several global supply chain managers. Some employees joined directly from Tesla, while others had been dismissed or laid off before joining Apple. Some ex-Tesla employees who joined Apple this year have not yet updated their public social media profiles with their new career info. That includes Apple's most noteworthy hire, Doug Field, Tesla's former Senior Vice President of Engineering. Tesla disputes CNBC's report, saying that voluntary attrition has decreased by one-third over the last twelve months, and that it has recently added talent from Apple and other companies. Regarding competition with Apple for talent, a Tesla spokesperson said, "We wish them well. Tesla is the hard path. We have 100 times less money than Apple, so of course they can afford to pay more. We are in extremely difficult battles against entrenched auto companies that make 100 times more cars than we did last year, so of course this is very hard work."

Elon Musk said he's thinking about taking Tesla private. More specifically, he said he may buy back the company for $71.3 billion (at a share price of $420), and already has the funding to do so. From a report: Musk, the CEO and largest shareholder of the electric car maker, said on Twitter on Tuesday that he has secured funding from a private buyer. He implied that the funding values the company at $420 a share. The stock had been worth about $342 a share before Musk's tweet, and shares quickly jumped as high as $371. The stock had climbed slightly earlier in the day after the Financial Times reported that Saudi Arabia has quietly built a big stake in Tesla. Tesla didn't immediately respond to a request for comment. About an hour and 20 minutes after the Musk tweet, trading in Tesla stock was suspended because the company was expected to release news. TechCrunch: Musk's hope, he later tweeted, is that "all current investors remain with Tesla even if we're private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity's SpaceX investment." Musk, who said he would stay on as CEO, also seems willing to have a provision for retail investors, who have held Tesla shares prior to Dec. 31, 2016, to convert their shares into private shares. Musk, in response to a tweet, said he's "super appreciative of Tesla shareholders" and "will ensure their prosperity in any scenario." Musk has publicly mused about taking Tesla private before, saying in a 2017 Rolling Stone profile: "I wish we could be private with Tesla," Musk murmurs as they exit. "It actually makes us less efficient to be a public company."

Analysts speaking to Reuters said they believe Musk is serious. George Galliers of Evercore ISI, said, "I can't believe this is something to bluff or make fun of. Given his historic frustration with short sellers, analysts and certain parts of the press, it is perhaps also not surprising that he has given consideration to taking the company private."

Update: Elon Musk sent an email to employees on Tuesday to explain his rationale behind the move. He wrote: Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share. I wanted to let you know my rationale for this, and why I think this is the best path forward. First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best. As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company. I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we're all trying to achieve. This is especially true for a company like Tesla that has a long-term, forward-looking mission. SpaceX is a perfect example: it is far more operationally efficient, and that is largely due to the fact that it is privately held. This is not to say that it will make sense for Tesla to be private over the long-term. In the future, once Tesla enters a phase of slower, more predictable growth, it will likely make sense to return to the public markets. In a tweet moments ago, Musk said, "Investor support is confirmed. Only reason why this is not certain is that it's contingent on a shareholder vote."

Thanks to gains in Model 3 output, Tesla's second-quarter revenue grew by more than $1 billion. Unfortunately, the company's net loss rose dramatically as a result. In a statement, Tesla said it achieved its target of producing 5,000 Model 3 vehicles per week and that it aims to make 6,000 per week by the end of August. It's expect to produce 50,000 to 55,000 Model 3 vehicles in the third quarter -- a sharp increase from the previous quarter.

"It took 15 years to execute on our initial goal to produce an affordable, long-range electric vehicle that can also be highly profitable," Musk and Chief Financial Officer Deepak Ahuja wrote in a letter to shareholders. "In the second half of 2018, we expect, for the first time in our history, to become both sustainably profitable and cash-flow positive." Tesla has only turned a profit in two quarters. CBS News reports: The electric vehicle company founded by billionaire Elon Musk reported an adjusted net loss of $717 million for the period on revenue of $4 billion. Tesla went through $739.6 million in cash between April and June, less than the $900 million Wall Street analysts had forecast. In another boost, the automaker said it has trimmed its capital spending by manufacturing the Model 3 on existing assembly lines, rather than building new lines. Although Tesla is burning through less cash, it continues to lose money. The company reported an adjusted net loss of $3.06 per share, more than analysts expected. The loss more than doubled from the same quarter a year ago. Slashdot reader Rei adds: After the release of Tesla's Q2 results and followed by the investor call, Tesla's stock surged around 9% in aftermarket trading today. Among the main drivers: automotive gross margins rose to 21%, Model 3 gross margins turned positive (before the start of sales of AWD and performance variants, which are making up half of all new orders), and the reiteration and reinforcement of guidance for sustainable profitability from Q3 onward. [...] While no longer using a reservation system in the U.S. for first-production orders (retaining it only for less expensive Model 3 variants and overseas orders), new North American first-production orders are making up a large portion of current orders; consequently, no changes are announced for timing of overseas orders. The average selling price is expected to remain high "for several quarters" due to "a richer mix in the initial wave of Model 3 deliveries to Europe and APAC"; the "normalization of the Model 3 average selling price" is anticipated in the second half of 2019, and is not expected to impact gross margins, due to improved production cost efficiency over time. On the conference call, Musk sounded tired and admitted to getting too little sleep. He apologized twice, but was told by an investor: "Don't let the trolls get you down, but we do like it when you tease the trolls a bit."

WindBourne shares a report from Forbes: In the second quarter of 2018, Tesla produced just over 53,000 vehicles, doubling its output compared to the same quarter last year. For the first time, Model 3 production (28,578) exceeded combined Model S and X production (24,761) with deliveries to customers totaling 40,740 for the quarter. The ramp up in Model 3 production is enabling it to outsell small and midsize luxury car sales in the U.S., according to some number crunching by CleanTechnica's Zachary Shahan.

His analysis claims that the Model 3 is crushing its "competitors" in that segment with total estimated sales for July amounting to 16,000 vehicles. The closest individual model to Tesla's mass-market endeavor is the Mercedes C-Class and even then, its July sales are estimated at just 6,029 units. The Model 3 is still untouchable when sales figures from multiple vehicles produced by the same company are added together. For example, the analysis expects sales of the BMW 2, 3, 4 and 5 Series to hit 12,811 at the end of July in total while customers will get their hands on 11,835 Mercedes C, CLA, CLS and E-Class models. That all means that Tesla would have a 23% share of the small and midsize luxury car market in July, ahead of BMW's 17% and Mercedes' 17%.

An anonymous reader quotes the Mercury News Six days after a fiery crash on Highway 101 involving a Tesla Model X took the life of a 38-year-old San Mateo man, the car's high-voltage lithium-ion battery re-ignited while sitting in a tow yard, according to the Mountain View Fire Department... The battery reignited twice in the storage yard within a day of the accident and again six days later on March 29. Two weeks later, in an effort to avoid more fires, the NTSB and Tesla performed a battery draw down to fully de-energize it...

On the company website, Tesla wrote "the reason this crash was so severe is that the crash attenuator, a highway safety barrier which is designed to reduce the impact into a concrete lane divider, had either been removed or crushed in a prior accident without being replaced. We have never seen this level of damage to a Model X in any other crash"... Tesla also reported that the vehicle's autopilot function was active at the time of the crash...

The National Transportation Safety Board is investigating the Highway 101 crash and three other accidents also involving Teslas, including a fiery 2014 Model S crash Tuesday in Florida that killed two teenagers. Also under investigation: A Model S crashed into a fire truck near Culver City in January, and the driver reportedly said Autopilot was engaged at the time. And it is looking into a battery fire of a Model X that drove into a home's garage in Lake Forest in August.
Two hours after that story was published, a Tesla smashed into a Starbucks in Los Gatos, California.

Timothy B. Lee writes for Ars Technica: A few days after the Mountain View crash, Tesla published a blog post acknowledging that Autopilot was active at the time of the crash. But the company argued that the technology improved safety overall, pointing to a 2017 report by the National Highway Traffic Safety Administration (NHTSA). "Over a year ago, our first iteration of Autopilot was found by the U.S. government to reduce crash rates by as much as 40 percent," the company wrote. It was the second time Tesla had cited that study in the context of the Mountain View crash -- another blog post three days earlier had made the same point. Unfortunately, there are some big problems with that finding. Indeed, the flaws are so significant that NHTSA put out a remarkable statement this week distancing itself from its own finding.

"NHTSA's safety defect investigation of MY2014-2016 Tesla Model S and Model X did not assess the effectiveness of this technology," the agency said in an email to Ars on Wednesday afternoon. "NHTSA performed this cursory comparison of the rates before and after installation of the feature to determine whether models equipped with Autosteer were associated with higher crash rates, which could have indicated that further investigation was necessary." Tesla has also claimed that its cars have a crash rate 3.7 times lower than average, but as we'll see there's little reason to think that has anything to do with Autopilot. This week, we've talked to several automotive safety experts, and none has been able to point us to clear evidence that Autopilot's semi-autonomous features improve safety. And that's why news sites like ours haven't written stories "about how autonomous cars are really safe." Maybe that will prove true in the future, but right now the data just isn't there. Musk has promised to publish regular safety reports in the future -- perhaps those will give us the data needed to establish whether Autopilot actually improves safety.
UPDATE (2/16/19): The study's underlying data reveals serious flaws in the methodology that undermine its credibility, according to new analysis from a research and consulting firm.

Timothy B. Lee writes for Ars Technica: A few days after the Mountain View crash, Tesla published a blog post acknowledging that Autopilot was active at the time of the crash. But the company argued that the technology improved safety overall, pointing to a 2017 report by the National Highway Traffic Safety Administration (NHTSA). "Over a year ago, our first iteration of Autopilot was found by the U.S. government to reduce crash rates by as much as 40 percent," the company wrote. It was the second time Tesla had cited that study in the context of the Mountain View crash -- another blog post three days earlier had made the same point. Unfortunately, there are some big problems with that finding. Indeed, the flaws are so significant that NHTSA put out a remarkable statement this week distancing itself from its own finding.

"NHTSA's safety defect investigation of MY2014-2016 Tesla Model S and Model X did not assess the effectiveness of this technology," the agency said in an email to Ars on Wednesday afternoon. "NHTSA performed this cursory comparison of the rates before and after installation of the feature to determine whether models equipped with Autosteer were associated with higher crash rates, which could have indicated that further investigation was necessary." Tesla has also claimed that its cars have a crash rate 3.7 times lower than average, but as we'll see there's little reason to think that has anything to do with Autopilot. This week, we've talked to several automotive safety experts, and none has been able to point us to clear evidence that Autopilot's semi-autonomous features improve safety. And that's why news sites like ours haven't written stories "about how autonomous cars are really safe." Maybe that will prove true in the future, but right now the data just isn't there. Musk has promised to publish regular safety reports in the future -- perhaps those will give us the data needed to establish whether Autopilot actually improves safety.
UPDATE (2/16/19): The study's underlying data reveals serious flaws in the methodology that undermine its credibility, according to new analysis from a research and consulting firm.

An anonymous reader quotes a report from Ars Technica: Tesla has an Autopilot problem, and it goes far beyond the fallout from last month's deadly crash in Mountain View, California. Tesla charges $5,000 for Autopilot's lane-keeping and advanced cruise control features. On top of that, customers can pay $3,000 for what Tesla describes as "Full Self-Driving Capability." "All you will need to do is get in and tell your car where to go," Tesla's ordering page says. "Your Tesla will figure out the optimal route, navigate urban streets (even without lane markings), manage complex intersections with traffic lights, stop signs and roundabouts, and handle densely packed freeways with cars moving at high speed." None of these "full self-driving" capabilities are available yet. "Self-Driving functionality is dependent upon extensive software validation and regulatory approval, which may vary widely by jurisdiction," the page says. "It is not possible to know exactly when each element of the functionality described above will be available, as this is highly dependent on local regulatory approval."

But the big reason full self-driving isn't available yet has nothing to do with "regulatory approval." The problem is that Tesla hasn't created the technology yet. Indeed, the company could be years away from completing work on it, and some experts doubt it will ever be possible to achieve full self-driving capabilities with the hardware installed on today's Tesla vehicles. "It's a vastly more difficult problem than most people realize," said Sam Abuelsamid, an analyst at Navigant Research and a former auto industry engineer. Tesla has a history of pre-selling products based on optimistic delivery schedules. This approach has served the company pretty well in the past, as customers ultimately loved their cars once they ultimately showed up. But that strategy could backfire hugely when it comes to Autopilot.

An anonymous reader writes: Within the past week, two Tesla crashes have been reported while Autopilot was engaged, and both involved a Tesla vehicle slamming into a highway divider. One of the crashes resulted in the death of Walter Huang, a Tesla customer with a Model X. The other crash resulted in minor injuries to the driver, thanks largely to a working highway safety barrier in front of the concrete divider. Ars Technica reports on the growing evidence that Tesla's Autopilot handles lane dividers poorly: "The September crash isn't the only evidence that has emerged that Tesla's Autopilot feature doesn't deal well with highway lane dividers. At least two people have uploaded videos to YouTube showing their Tesla vehicles steering toward concrete barriers. One driver grabbed the wheel to prevent a collision, while the other slammed on the brakes. Tesla argues that this issue doesn't necessarily mean that Autopilot is unsafe. 'Autopilot is intended for use only with a fully attentive driver,' a Tesla spokesperson told KGO-TV. Tesla argues that Autopilot can't prevent all accidents but that it makes accidents less likely. There's some data to back this up. A 2017 study by the National Highway Transportation Safety Administration (NHTSA) found that the rate of accidents dropped by 40 percent after the introduction of Autopilot. And Tesla argues that Autopilot-equipped Tesla cars have gone 320 million miles per fatality, much better than the 86 million miles for the average car. These figures don't necessarily settle the debate. That NHTSA figure doesn't break down the severity of crashes -- it's possible that Autopilot prevents relatively minor crashes but is less effective at preventing the most serious crashes. And as some Ars commenters have pointed out, luxury cars generally have fewer fatalities than the average vehicle. So it's possible that Tesla cars' low crash rates have more to do with its wealthy customer base than its Autopilot technology. What we can say, at a minimum, is that there's little evidence that Autopilot makes Tesla drivers less safe. And we can expect Tesla to steadily improve the car's capabilities over time."

An anonymous reader quotes a report from The Verge: Tesla says Autopilot was engaged at the time of a deadly Model X crash that occurred March 23rd in Mountain View, California. The company posted a statement online late Friday, after local news reported that the victim had made several complaints to Tesla about the vehicle's Autopilot technology prior to the crash in which he died. After recovering the logs from the crash site, Tesla acknowledged that Autopilot was on, with the adaptive cruise control follow distance set to a minimum. The company also said that the driver, identified as Apple engineer Wei "Walter" Huang, had his hands off the steering wheel and was not responding to warnings to re-take control. Tesla said in a statement: "The driver had received several visual and one audible hands-on warning earlier in the drive and the driver's hands were not detected on the wheel for six seconds prior to the collision. The driver had about five seconds and 150 meters of unobstructed view of the concrete divider with the crushed crash attenuator, but the vehicle logs show that no action was taken."

According to Mercury News, the driver of the car was headed southbound on California's Route 101 when his Model X crashed headfirst into the safety barrier section of a divider that separates the carpool lane from the off-ramp to the left. "The front end of his SUV was ripped apart, the vehicle caught fire, and two other cars crashed into the rear end. [The driver] was removed from the vehicle by rescuers and brought to Stanford Hospital, where he died from injuries sustained in the crash."

Tesla has unveiled a new "workplace charging" program today, which offers businesses free Tesla wall connectors and will also cover installation, provided they meet certain qualifications set forth by the California carmaker. "Tesla won't cover the cost of operating the charging stations, and the company says there could be other permitting, construction, zoning, or labor costs," reports The Verge. From the report: The workplace charging stations will be compatible with all Tesla cars, but not with other EVs, and they won't show up on publicly available Tesla charging maps. The wall chargers are 240 volts, or "Level 2," which is capable of topping off a battery pack in a handful of hours, though the company says the charge rate will vary by location depending on the infrastructure available.

Tesla has issued a new policy called Supercharger Fair Use, which prohibits new commercial drivers from using the red-and-white charging ports. The reason behind this new policy is to help alleviate congestion and improve the experience for others who rely on the Supercharging services. The Verge reports: Tesla says that the stations are intended for drivers who don't have ready options for charging at home or at work, and that when they're not used for this purpose, "it negatively impacts the availability of Supercharging services for others." Thus, the new policy says that for vehicles purchased after December 15th, drivers who plan to use their vehicles as a taxi, for ridesharing, commercial delivery or transportation, governmental purposes, or other commercial ventures won't be permitted to use the free stations. The company tracks usage and driver behavior, and if they find that someone isn't complying with the policy, they might be asked to stop, and simply limit or block one's vehicle from the stations in certain instances. The policy went into effect on Friday, December 15th, 2017. A Tesla spokesperson said that the company does "encourage the use of Teslas for commercial purposes," and that they will work with drivers to find other places to charge their vehicles. The policy carve out an exception, saying that some stations might be excluded, depending on local circumstances.

Last week, Tesla unveiled its new four-motor electric Semi but left out one key detail -- the price. "Now that's changed: the regular versions of the 300-mile and the 500-mile trucks will cost $150,000 and $180,000 each," reports The Verge. "There is also a 'Founders Series' which will cost $200,000 per truck." Tesla does note that the prices are "expected" leaving the company some wiggle room on the final pricing. From the report: If those prices and specs stick then Tesla has a potentially disruptive offering with Semi. Most long-haul diesel trucks are priced around $120,000 and cost tens of thousands of dollars to operate each year. Tesla claims its all-electric Semi will provide more than $200,000 in fuel savings alone over the lifespan of the truck.

Tesla confirmed yesterday that it is "in talks" with the municipal government of Shanghai to manufacture its vehicles in the country. Tesla said in a statement: "Tesla is working with the Shanghai Municipal Government to explore the possibility of establishing a manufacturing facility in the region to serve the Chinese market. As we've said before, we expect to more clearly define our plans for production in China by the end of the year. Tesla is deeply committed to the Chinese market, and we continue to evaluate potential manufacturing sites around the globe to serve the local markets. While we expect most of our production to remain in the U.S., we do need to establish local factories to ensure affordability for the markets they serve." Quartz reports: The announcement follows more than a year of speculation that the electric-vehicle maker would set up shop in China, and confirms that Tesla is altering its China strategy away from merely exporting vehicles in order to reach more Chinese consumers. Earlier this year, Musk made a stealth visit to China to visit Wang Yang, one of the nation's highest-ranking officials, to discuss Tesla's plans. Tesla has been selling vehicles in China since 2014, but to date, its share of the electric vehicle market remains marginal, at just 2% as of June 2016, according to trade blog CleanTechnica. There are several reasons for this, one of which is price. Tesla currently exports its vehicles to China, and the government places an import tax of 50% on Tesla cars. The sticker price for the most simple Model S in China is $104,972, compared to $69,500 in the US.

The National Highway Traffic Safety Administration has awarded the 2017 Tesla Model X five-star crash safety ratings in every category. From the company's blog: More than just resulting in a 5-star rating, the data from NHTSA's testing shows that Model X has the lowest probability of injury of any SUV it has ever tested. In fact, of all the cars NHTSA has ever tested, Model X's overall probability of injury was second only to Model S. Model X performs so much better in a crash than gas-powered SUVs because of its all-electric architecture and powertrain design. The rigid, fortified battery pack that powers Model X is mounted beneath the floor of the vehicle creating a center of gravity so low that Model X has the lowest rollover probability of any SUV on the road. No other SUV has ever come close to meeting and exceeding this rollover requirement.

An anonymous reader quotes a report from Fortune: Tesla says it will double the number of electric vehicle chargers in its network this year as the automaker prepares for the production of its mass-market vehicle the Model 3. The plan, announced Monday in a blog post on the company's website, will grow its global network of Superchargers from more than 5,400 today to more than 10,000 by the end of the year. Tesla, which had previously announced in its annual shareholder letter plans to double the network in North America, did not disclose the cost of such an ambitious expansion. Many sites will soon enter construction to open in advance of the summer travel season, according to Tesla. The company says it will add charging locations within city centers as well as highway sites this year. The goal is to make "charging ubiquitous in urban centers," Tesla says in its blog post. The company says it will build larger sites along busy travel routes to accommodate several dozen Teslas simultaneously. These larger sites will also have customer service centers.

Last week, Tesla announced that its Gigafactory has begun mass production of lithium-ion battery cells in Nevada. But the company failed to mention one thrilling detail in their January 4 announcement: the Gigafactory could be powered by the world's largest solar rooftop installation. According to an investor handout, a 70-megawatt (MW) solar array along with ground solar panels could let the factory operate entirely on clean energy. Inhabitat reports: The 70 MW solar array would be around seven times larger than any rooftop arrays currently installed, according to Tesla's exciting handout released by Electrek and confirmed as genuine by The Verge. The rooftop array currently boasting the title of world's largest is a 11.5 MW installation in India. The United States' biggest rooftop array is a 10 MW array atop a California Whirlpool distribution center. SolarCity will likely manufacture the solar panels, according to The Verge, as Tesla acquired the solar energy company in November. Powerpacks will store any excess energy generated by the vast solar installation. Tesla said in the handout the "all-electric" factory will be able to run with greater efficiency and will produce zero carbon emissions. Heating and water use at the Gigafactory will also be sustainable. In the handout, Tesla said a large part of heating for the building would come from waste heat obtained from production processes. Also, "Gigafactory's closed-loop water supply system uses six different treatment systems to efficiently re-circulate about 1.5 million liters (that's around 400,000 gallons) of water, representing an 80 percent reduction in fresh water usage compared with standard processes." Tesla even said they're building a recycling facility at the Gigafactory that will be able to "safely reprocess" battery cells, packs, and modules to obtain metal usable in new cells.

Software developer Chris Lattner, who is the main author of LLVM as well as Apple's Swift programming language, is leaving Apple, he said today. From a post: When we made Swift open source and launched Swift.org we put a lot of effort into defining a strong community structure. This structure has enabled Apple and the amazingly vibrant Swift community to work together to evolve Swift into a powerful, mature language powering software used by hundreds of millions of people. I'm happy to announce that Ted Kremenek will be taking over for me as "Project Lead" for the Swift project, managing the administrative and leadership responsibility for Swift.org. This recognizes the incredible effort he has already been putting into the project, and reflects a decision I've made to leave Apple later this month to pursue an opportunity in another space. We're delighted to share that we are interviewing Lattner, who says he's a "long-time reader/fan of Slashdot." Please leave your question in the comments section. Lattner says he'll talk about "open source (llvm/clang/swift/etc) or personal topics," but has requested that we do not ask him about Apple, which is understandable.

Update: Lattner is joining Tesla.

Thelasko writes: Right on schedule, Tesla's Gigafactory has begun production of battery cells. The fact that the factory has opened on schedule has surprised many critics of the company. Reuters reports: "Electric car maker Tesla Motors Inc has started mass production of lithium-ion battery cells at its gigafactory in Nevada along with Japan's Panasonic Corp, the company said on Wednesday. The cylindrical '2170 cells,' which will be used to power Tesla's energy storage products and the new Model 3 sedan, have been jointly designed by Tesla and Panasonic, its longstanding battery partner. The gigafactory will initially produce battery cells for the company's Powerwall 2 and Powerpack 2 energy products, Tesla said. The factory is expected to drive down the cost of battery packs by more than 30 percent, the company has said. At peak production, the gigafactory is expected to employ 6,500 workers and create between 20,000 and 30,000 additional jobs in the surrounding regions, Tesla said."

Tesla has updated its Supercharging Network of free fast-charging stations. Customers who purchase Teslas after January 1st, 2017, will be required to pay "a small fee to Supercharge." The fee itself "will be charged incrementally and cost less than the price of filling up a comparable gas car." The Verge reports: Current Tesla owners with Supercharger-equipped cars will be able to use the stations for free for the life of those vehicles, and a Tesla spokesperson tells The Verge that the free charging will transfer to successive owners. Customers who buy Teslas after that January 1st cutoff will be afforded 400 kWh of free Supercharging credits each year, good for about 1,000 miles, according to Tesla. The company says it will release more details about the change later this year, but added that "prices may fluctuate over time and vary regionally based on the cost of electricity." "Our Supercharger Network will never be a profit center," the company wrote in a blog post about the change. Tesla says that, by losing less money on providing free electricity at these stations, that the fees will subsidize the continued expansion of the Supercharger network. The Superchargers allow for a full charge in about 75 minutes or a half charge in about -- much faster than the standard Level 1 or Level 2 chargers found around the U.S. -- and Tesla has built 734 Supercharger stations (with nearly 5,000 chargers) since the network was started in 2012.

Tesla has updated its Supercharging Network of free fast-charging stations. Customers who purchase Teslas after January 1st, 2017, will be required to pay "a small fee to Supercharge." The fee itself "will be charged incrementally and cost less than the price of filling up a comparable gas car." The Verge reports: Current Tesla owners with Supercharger-equipped cars will be able to use the stations for free for the life of those vehicles, and a Tesla spokesperson tells The Verge that the free charging will transfer to successive owners. Customers who buy Teslas after that January 1st cutoff will be afforded 400 kWh of free Supercharging credits each year, good for about 1,000 miles, according to Tesla. The company says it will release more details about the change later this year, but added that "prices may fluctuate over time and vary regionally based on the cost of electricity." "Our Supercharger Network will never be a profit center," the company wrote in a blog post about the change. Tesla says that, by losing less money on providing free electricity at these stations, that the fees will subsidize the continued expansion of the Supercharger network. The Superchargers allow for a full charge in about 75 minutes or a half charge in about -- much faster than the standard Level 1 or Level 2 chargers found around the U.S. -- and Tesla has built 734 Supercharger stations (with nearly 5,000 chargers) since the network was started in 2012.

Elon Musk has had roofs on his mind lately. Last week, Musk unveiled the residential "solar roof," consisting of glass roof tiles with integrated solar panels. Today, he announced that customers will be able to add a glass roof to the Model S sedan for an extra $1,500. Tesla said that the glass roof can give passengers the feeling of "an open expansive cabin" that makes the Model S interior "feel amazing." Fortune reports: The move is another example of how Tesla continues to add new features and technology to its four-year-old vehicle, the second to debut in its growing lineup. In particular, Tesla has routinely updated the Model S with technology that has also been available in more recent car models. For example, the company's upcoming fourth car, the Model 3, will come with a glass roof. The new glass roof option also shows off Tesl'a new investment in automotive glass technology. Earlier this week Musk revealed that the company had created an automotive glass division. In the tweet on Friday, Musk said that the Model S glass roof was "very hard to develop."

Earlier this week, Tesla signed a non-binding agreement to buy solar cells from a new Panasonic factory in Buffalo, New York -- but it's part of a much bigger maneuver. An anonymous Slashdot reader writes: "If all goes to plan, Tesla will be supplying customers with the solar panels that generate electricity that could then be used to charge the battery in their Tesla car or the battery in the Tesla Powerwall home energy storage system," reports the Christian Science Monitor. The Wall Street Journal reports that Musk's SolarCity "will sell, finance and install the panels."

But the Buffalo News suggests the deal is really "aimed squarely at skeptical shareholders" who may be leary of a proposed merger between Tesla and SolarCity," which one analyst calculates will require nearly $6 billion in extra capital. Panasonic could help shoulder the costs of the Buffalo factory, while also putting a more experienced manufacturer in charge of producing high-efficiency solar modules.
The Stack reports some shareholders have actually filed a lawsuit against the merger.

An anonymous reader quotes a report from Jalopnik: All current Tesla models that will be produced in its Fremont, California factory will come with self-driving hardware built-in capable of Level 5 autonomy, including the upcoming Tesla Model 3, the company announced tonight. According to the announcement, Tesla will manufacture all of its cars with the hardware necessary for Level 5 self-driving systems going forward, including the Model S, Model X and new Model 3. At the introduction of the Model 3, it wasn't clear whether or not every Model 3 package would come standard with the hardware and software to handle Autopilot and any other self-driving features. That's been cleared up now, but there's a kicker. Just like on current Model S and Model X models, you can purchase the cars with the self-driving hardware included. But, in order to activate the software and actually use the Autopilot or upcoming advanced self-driving safety features, you will have to option it when you order the car, or pay more for it later. Elon Musk stated that the new hardware in all of Tesla's cars going forward are Tesla's own vision software, with a Tesla-developed neural net. The new hardware and software capabilities still need to undergo all of the testing required by Tesla's own standards, as well as government approval before unleashing Level 5 autonomous cars onto the streets.

An anonymous reader quotes a report from Reuters: Tesla Motors Inc reported its 13th straight quarterly loss as a rise in sales of its Model S and Model X electric cars failed to make up for the huge cost of ramping up production. The company, run by Silicon Valley entrepreneur Elon Musk, said on Wednesday it was on track to deliver about 50,000 new Model S and Model X vehicles during the second half of 2016. Shares of Tesla, which has offered to buy solar panel installer SolarCity Corp for $2.6 billion, were volatile in after-hours trading. They were last up 1 percent. Tesla delivered 14,402 vehicles in the second quarter, missing its goal of 17,000. It delivered 14,810 vehicles in the first quarter, which was also less than its expectations. Tesla said its net loss widened to $293.2 million, or $2.09 per share, in the second quarter, from $184.2 million, or $1.45 per share, a year earlier. Total revenue rose 33 percent to $1.27 billion in the quarter ended June 30. In addition to acquiring SolarCity, Tesla has unveiled its massive $5 billion Gigafactory in Nevada last week and announced its "Master Plan, Part Deux" not too long before that, which includes manufacturing electric trucks and buses, as well as a ride-sharing program.

An anonymous reader quotes a report from CNET: A joint effort between Tesla and Panasonic, the Gigafactory is a $5 billion project that will create the world's premier battery manufacturing facility. The Gigafactory will not only be physically larger than any other cell-packing plant on the planet, it'll produce more batteries than the entire industry did back in 2013. That's a lot of batteries, enough to meet Tesla's 500,000-per-year manufacturing goals -- and potentially even more. When completed, the factory will cover five million square feet of the desert floor just outside of Reno, Nevada. Right now, the uncompleted but already-operational factory sits on 800,000 square feet. Over the next four years the building will grow and grow again, swelling to its full size while production dials up simultaneously. The roof will be covered in solar panels, with the goal of producing enough electricity to power the entire thing. Tesla is already assembling Powerwall units here, but the first Model 3 battery packs are expected to roll off the line by the middle of next year. From there, Tesla will have to scale quickly to meet the company's Model 3 production goals for 2018. And, once the company does, the cost savings will begin. The "Tesla Gigafactory Tour" video can also be viewed on YouTube via Roadshow.

An anonymous reader writes from a report via Los Angeles Times: After teasing Part 2 of his "master product plan" for over a week, Elon Musk finally delivered. Los Angeles Times reports: "In a blog post published on the automaker's website, Musk introduced a multiyear, four-pronged strategy that includes new kinds of Tesla vehicles, expanded solar initiatives, updates on Tesla's 'autopilot' technology and a ride-sharing program. Commercial trucks, buses, a 'future compact SUV' and a 'new kind of pickup truck' will be added to Tesla's fleet of electric cars. A heavy-duty truck called the Tesla Semi and a shrunken bus that Musk called a 'high passenger density urban transport' vehicle are in early development stages 'and should be ready for unveiling next year,' he said. The smaller bus would be designed without a center aisle, with seats close to the entrances, and would be able to automatically pace themselves with traffic, the post said. The bus driver would become a 'fleet manager.' Musk also used the master plan to defend his bid for rooftop solar power provider SolarCity and said he aims to make Tesla's Autopilot robotic driver-assist system 10 times safer than cars that humans drive manually. Musk also plans to move Tesla into the popular ride-sharing business, not only with an Uber-like fleet but also with an app that lets Tesla owners rent out their vehicles when they're not using them, perhaps defraying a portion of their auto loans. This will happen, he said, 'when true self-driving is approved by regulators,' a turn of events that's at least several years away."