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Tesla Posts Biggest Quarterly Loss, Slashes Production of Model X and Model S (yahoo.com)
Tesla has reported the largest quarterly loss in its history, and said it was cutting production of its Model S and Model X vehicles. Here are the key third-quarter numbers with expectations via Bloomberg: Adjusted loss per share: -$2.92 (-$2.23 expected); Revenue: $2.98 billion ($2.39 billion expected); Free cash flow: -$1.4 billion (-$1.2 billion (expected). Yahoo News reports: The company said it plans to produce 10% fewer units of its Model S and Model X models in the fourth quarter and reallocate resources to the Model 3, its newest. Tesla expects to hit a Model 3 production rate of 5,000 vehicles per week by late Q1 2018. "While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear," Tesla said in its statement. Tesla said in October that it produced only 260 vehicles, well below its target of 1,500. CEO Elon Musk said the Model 3 was "deep in production hell."
Many companies spend more money than they make starting out and reinvest more money than they make as they ramp up operations. That's pretty typical (take a good look at Amazon). They have a solid sales strategy, an exciting product roadmap and lineup, as well as a CEO with a proven track-record of dealing with struggling finances.
People will give him money because they believe in his strategy and ability to execute.
I'm one of them and hope that he delivers.
Got my Model S in 3/2014 and hope to trade it in for a Model 3 with similar battery size in a couple years.
80k miles on mine so far and still loving it. Battery acts just like it did on day one. I had two proper services so far and took the car in for two other minor issues (a tail light went out once, and the wind shield wiper fluid didn't eject once). Original brake pads but third set of tires (both of the first two sets got changed under tire warranty at my local BJs).
Does great in the snow so far (in North East Pennsylvania) on standard all-weather tires. It's rear wheel drive. Wondering how much better the four wheel drive models could possibly be.
I never had range anxiety and my wife got over it within six months of owning the car. We take it everywhere and she only takes her SUV when my car is unavailable.
Help! I'm a slashdot refugee.
Many companies spend more money than they make starting out and reinvest more money than they make as they ramp up operations. That's pretty typical (take a good look at Amazon).
The Amazon comparison again... Amazon had free cash flow early on and put it back into the company. In their entire public existence, Amazon went to the capital markets just once. Tesla constantly needs other people's money just to keep the lights on.
Tesla != Amazon
Note that I know Volt and Leaf owners, all of them have a similarly positive experience (battery life strong after 180k miles, regenerative breaking making the brakes last a long time, and no mechanical issues with the motors to speak of).
So if it should come to pass that the financials tank Tesla, *hopefully* other vendors shall provide.
My biggest worry is so much of the world pinning all their electric vehicle viewpoint on Tesla, and if it fails at executing on the more mundane facets of running a large automotive company discouraging the rest of the market.
XML is like violence. If it doesn't solve the problem, use more.
Be the first is to lead the market, which requires huge investment, is risky, but can lead to lots of cash in the bank.
The second is to follow the leader, making products that fit the newly exposed demand - not cutting edge, but fit for purpose at a reasonable cost with reduced risk.
Add into the mix that cars are notoriously hard to get right (Tesla reportedly has lots of niggles that established car manufacturers have already solved) and now that vehicles like Volvo's Polestar and the ilk are on the horizon, from a brand reputed for reliability (albeit manufactured in China), and that Germany are building their own battery gigafactory -
Musk should be worried. The only way he'll make money is cashing in on that first wave, and it's already being spread out.
biopowered.co.uk - catalytically cracking triglycerides for home automotive use since 2008. Just say no to big oil!
Apparently the vendor that was building the power packs in the Gigafactory had an automation system that didn't work. Tesla had to hand-build the modules after firing them, and it will take time to ramp up.
None of this stuff is really a surprise. Tesla expects a break-even status on the Model 3 in Q4, with margins improving in 2018. Yeah... it might push back a quarter... judging by history. At the same time, they are stabilizing the PV business and growing the energy storage business significantly, which now represent 20% of revenue.
They will start 2018 with about $2.3B in cash, and likely be positive cashflow soon after.
1) After their ridiculous stock valuation drops to a reasonable amount, they get scooped up by a real automaker as a premium badge.
2) They remain a niche premium car maker.
3) They become a battery company.
They don't have the infrastructure to compete on a world wide scale with the big automakers.
As soon as electrics are well accepted by the public and hit critical mass, the big automakers are going to destroy Tesla.. because unlike Tesla they can actually build cars. Lots of them. They haven't been doing nothing and being disrupted by Tesla. They've been waiting until it makes sense economically.
It's that simple to forget when you have multiple /. accounts.
https://imgflip.com/i/vm4t4
Tesla must really be in trouble. Shills are shilling so hard that this one posted the same comment twice from two different accounts
https://news.slashdot.org/comm...
It's not a shill, the second one BeauHD+(Home+UID), looks to be some kind of bot re-posting other people's comments.
Not sure what the tactic is, maybe once the account gets enough karma it will add a link into its sig or something.
To be honest I've always wondered how /. avoids bot abuse.
I stole this Sig