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Tesla Delays Launch of Model X Until Q3 2015
An anonymous reader writes "Tesla on Wednesday announced that it was pushing back the release of its highly anticipated Model X until the third quarter of 2015. Explaining the delay, Tesla relayed the following in its quarterly shareholder letter: "Work continues on the finalization of Model X with the testing of Alpha prototypes and initial builds of the first Beta prototypes. Model X powertrain development is almost complete with the early introduction of Dual Motor drive on Model S. We recently decided to build in significantly more validation testing time to achieve the best Model X possible. This will also allow for a more rapid production ramp compared to Model S in 2012." During Tesla's subsequent earnings conference call, Tesla CEO Elon Musk shed a bit more light on all things Model X, including the fact that if you order one today, it won't arrive until early 2016.
Forbes goes into more on the business end of what's caused delays for the company, as well as how investors should see it (critically, they say).
It kind of is, they are almost as much of a tech company as a car company, what they do has a big impact.
If there is anything that is "news for geeks", Tesla automobiles would be it. Exotic energy storage systems based upon laptop computers, mobile network platforms that have built-in web browsers and awesome sound systems, and pretty damn nice looking equipment as well that can get you from point A to point B in some awesome style that can also get you laid (not that most geek know a thing about such stuff).
What makes that irrelevant to Slashdot? That you might have to wait a few more months before you can get a girlfriend?
We've had ours coming up on two years. By far the best car I've ever owned and driven. It does actually work very well and when maintenance costs and savings on gas are included, its not really more costly than any other comparable luxury sedan.
Tesla may today be a niche company, but its certainly no liberal pipe dream.
Greed is the root of all evil.
"Tesla Q3 Earnings Live: Shares Rise, Strong Outlook for '15 Even While Model X Faces More Delays"
http://www.forbes.com/sites/ma...
Tesla reported a tiny third-quarter profit of $3 million using its preferred numbers while delivering a record 7,785 Model S sedans. That resulted in a $932 million quarter, up 55% from a year ago. But results were challenged by a month-long shutdown of the company's lone production facility as it tools up for the Model X crossover SUV it is introducing next year, albeit later than planned. Gross margin also took a small hit due to changes in warranty accounting, coming in at 23%. The sum total is that Tesla lowered its outlook for 2014 production to 33,000 total deliveries, from 35,000 citing the production deficit. Investors so far have shrugged off the news, sending the stock higher after hours.
Wall Street was looking for lower revenues and a small loss. But the numbers were buoyed by very strong sales of Zero Emission Vehicle credits, which totaled a "much higher than expected" $76 million, Tesla said.
"Tesla Shows Signs It's Struggling With Manufacturing"
http://www.forbes.com/sites/mi...
Tesla Motors TSLA +5.8% reported its third quarter results Wednesday. While analysts' attention was riveted to its financials, manufacturing experts saw two signs that the company is struggling.
First, Tesla lowered its 2014 production target to 33,000 vehicles, down from its goal of 35,000. Second, Tesla pushed back the delivery date for its upcoming Model X once more, to the third quarter of 2015. ...
The announcement validates the prediction made last month by Morgan Stanley MS +0.09% analyst Adam Jonas.
One has a "hey, no biggie" tone while the other uses weasel words and literal red herrings to push "gloom and doom" scenario.
Despite obvious disregard by investors, clearly seen in the opening paragraph with Tesla's stock market tag.
I.e. "Manufacturing experts" who say that the company is "struggling" are ONE "Morgan Stanley analyst Adam Jonas".
Who, in the cited article said the following:
"Given the ever-higher level of technical and safety scrutiny facing all auto manufacturers, we find it very common for major launches to hit dealer lots later than the market anticipates," Jonas said.
Which was interpreted in TFA as:
One was that major launches are often delayed, although generally not for numerous times like Model X.
Note the slight bias?
The rest of it is in the same mode. Positive points and sentiment turned into negative.
Jonas refers to Tesla as "world's most important car company", calling the delay "an opportunity to buy" and a "silver lining".
Instead of talking about "generally numerous delays", furor, technological features not available - while dumping lines which present those things as positive.
Like " intense public interest in the product", "one of the most desirable âwhy buyâ(TM) characteristics" and the entire 4th point being a praise to Tesla.
Jonas, in his investor note, said there were four reasons he expected another delay for Model X. One was that major launches are often delayed, although generally not for numerous times like Model X. The second was that few prototypes have been spotted on the road.
Third, Tesla caused a little furor a few weeks ago, when it introduced an unexpected all-wheel drive version of the Model S, and Jonas thought the company might want to put more space between it and the Model X.Fourth, Model X is likely to be Teslaâ(TM)s most ad
Mit der Dummheit kämpfen Götter selbst vergebens
Tesla struggles with scaling. They talk about how the demand is greater than their production capacity. which is OK in a niche market but a bad thing in a major competitive market. They are losing money with their existing scale, and it is not clear how much it will cost to scale up significantly. They may take quite a long time to become profitable, or they may never make it to that point, it is still unclear. What makes it a risky investment, in my opinion, is the fact that once the production/price/market variables become favorable for the technology, the big companies will be able to scale it at a much lower cost, as that is what they are good at. That is where the battery manufacturing thing become critical for Tesla's sustainability.
What makes it a risky investment, in my opinion, is the fact that once the production/price/market variables become favorable for the technology, the big companies will be able to scale it at a much lower cost, as that is what they are good at.
I very much doubt that Tesla is going to outsource its manufacturing for key components. It is going to keep those in house, and it will be expensive in the near future, but they will not have worry about competitors getting cheap access to those components. Too many of the current car companies are focused upon assembling a car; they are not engineering huge advantages in technology or going in new directions.
Tesla is going to have these guys beat for no other reason than they are going to sit on their hands until it is too late. If you want a better explanation, they are going to have engineer their own product and manufacturing of specialty parts. They don't seem interesting in committing to electric cars now and when Tesla is big enough to be mainstream it will still take them 3 to 5 years to get their own product out the door.
that's barely on the big car companies' radars.
Aside from Toyota, Mercedes, & BMW who all previously/current owned shares or have direct partnerships with Tesla or GM where they were at least part of the impetus behind developing the Volt. Not to mention nearly ever car dealer in the USA who are all campaigning to have Tesla stores banned because they might destroy the car dealer business model entirely.
I live in a metropolitan area of a red state and I've never even seen a Tesla in person.
But you might hear your politicians talk about them. Now that Tesla is having success, a lot of repubilcans are falling over themselves to say they've supported them all along.
As another Tesla owner (6 months for me), my previous car was a BMW 328 xDrive.
I drive my cars reasonably hard (~20k miles/year). Fuel savings alone is ~$2-3K/year. So you're not going to make the money back. Period.
But the drive is totally different from a BMW. Not necessarily better or worse. Definitely different. The Tesla acceleration is unreal but the cornering is so-so. The overall handling in rain is about the same or slightly better in the Tesla.
All together, I will never go back to the BMW. It's nice not having to worry about filling up my gas tank, and acceleration is more 'fun', and the information/entertainment system is out of this world.
Help! I'm a slashdot refugee.