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Tesla Meets Q3 Product Goals of 50,000 To 55,000 Model 3s (electrek.co)
An anonymous reader quotes a report from Electrek: Electrek has learned that Tesla already achieved the goal for a new record production with two days still to go before the end of the quarter. As we reported last week, Tesla achieved a new record day of Model 3 production, but it was cutting it close for the quarterly goal. The automaker had been guiding a production of 50,000 to 55,000 Model 3 vehicles for the third quarter. According to a reliable source familiar with Tesla's production, the automaker had a strong week of production and managed to bring the total number Model 3 produced to over 51,000 vehicles. For the first time in months, Tesla was able to produce about 5,000 Model 3 vehicles over seven days. The total production for the week was at around 6,700 vehicles -- bringing the total for the quarter to about 77,400 vehicles. Tesla was able to maintain production of about 1,100 cars per day over four days this week and about 800 Model 3's per day over three of those days. It's one of the highest levels of production that Tesla was ever able to maintain.
How many of those are actually sellable units ready for customer delivery, and how many are "factory gated" units requiring more labor to fix? TFA didn't say.
I have to give them props for hitting those numbers. They've struggled for some time to make this work, and they held to it. Normally I'm a critic of Tesla, but props for that.
Before anyone jumps on the Tesla stock rollercoaster though, they are NOT leaking the units of unsold inventory. This is the key number here. Tesla is showing an ability to produce (although likely at very poor working conditions that are probably unsustainable given they're making Model 3s under a canopy in the parking lot), but they're not necessarily selling them. Most of the pre-orders were for base Model 3, but Tesla has been making more of the high-end Model 3s as they make some margin on those. So when they do report numbers, look for growing inventory, to determine if Tesla is on a path to sustainability.
This site has a good explanation and went through the numbers during Q2: https://seekingalpha.com/article/4185791-teslas-new-unsold-inventory-soaring
I saw a model 3 yesterday with the following rego: OILLOL
http://michaelsmith.id.au
More Model 3s will mean a strong used Tesla market in a few years. Thats when I can afford to buy one.
When Tesla is profitable, cash positive and has dealt with all that Solarcity debt, then we'll have something to talk about. Otherwise, the Model 3 production figures are just a distraction.
And what's this focus on Model 3 sales? Model S sales have tanked. The Model X is flat. Solarcity is floundering, I mean really.
The definition of a successful business is one that is profitable. One that is not, is unsuccessful - a failure.
Tesla is a failure. It's been 15 years - going on 16 - and Musk can't make it work?
Ford makes about 1.625 million cars each quarter.
Keep working on it.
SJW: Someone who has run out of real oppression, and has to fake it.
Hey rei, you'll be able to top up your holding, the share price is back down to where you bought in. I wish I had your expertise.
Anyone who has worked in a high tension (pun intended) manufacturing situation knows that when artificial production quantity goals are set, the first thing that goes is quality and reliability. Rush and shortcuts kill good products. I know that production goals bring in the cash necessary for the company, but I'll wager that in 2 years these will be the serial numbers to avoid in the used car lots.
lol, can't wait for the other shoe to drop on the SEC news, which will be followed by all of you shorts defenestrating yourselves
For the first time in months, Tesla was able to produce about 5,000 Model 3 vehicles over seven days. The total production for the week was at around 6,700 vehicles -- bringing the total for the quarter to about 77,400 vehicles. Tesla was able to maintain production of about 1,100 cars per day over four days this week and about 800 Model 3's per day over three of those days. It's one of the highest levels of production that Tesla was ever able to maintain.
In other words, Tesla didn't meet their 6,000 production target.
https://www.businessinsider.com/tesla-model-3-production-to-hit-6000-per-week-by-end-of-august-2018-8
Tesla expects to make 6,000 Model 3 sedans in a week by the end of August, the company said in its second-quarter earnings letter
Yeah, that's the most blatant "Don't look at the elephant in the room" press release I've seen. Unfortunately, this elephant is a bit too big not to notice.
News on production is relevant to profits. News on tweets, Musk's sleep schedule and SEC action is not. I took the dip as a buying opportunity.
I should use this sig to advertise my book ISBN-13 : 978-1501515132.
That makes no sense. Let's say Tesla made 100,000 cars instead of 50,000 this quarter. Would you have bought more? What if they lost $10,000 on each car they produced? Just because some company "meets" some fake (always changing) production number makes no difference. I would say an active SEC investigation looking to remove the CEO, and a couple of potential DOJ investigations are more relevant.
All those Musk haters are just jealous because he can date hot godesses like Amber Heard and they can't.
Much like Apple Computer way back in the day (1997), the current entity of Tesla is in real bad financial shape. Probably close to default despite all the really hard work on the Model 3. So Musk finds a surefire way to get himself kicked out of the company, via tweet. Company will declare Chapter 11 without him, saving himself from the taint of doing it himself. He focuses on SpaceX for a bit, and then he comes back in a few years like Steve Jobs returning to Apple. Lightened of the debt load, Tesla can become profitable as a going enterprise, and Musk gets to be deified once again.
Oh, and tunnels all over LA.
Nope, Tesla sure didn't reach that goal. That really sucks for them.
Better toss that baby out with the bath water.
We should probably abandon the space program too, I mean, after Apollo 1, Apollo 11, Challenger, and Columbia, we should just not invest in manned space anymore. It's all just a big fraud. The earth is flat, anyway. /sarc
Production is steadily increasing, and I see more Tesla cars on the road every day. Including the model 3 in my garage, surrounded by the tools I recently used to change a clutch, timing belt, water pump, and spark plugs in my son's vehicle. Sure, I can afford to pay someone else to do that shit, but why? More often than not shops do a piss-poor job, over charge for the cheap parts they use, and overcharge for their labor. Planned obsolescence my ass.
I look forward to never having to do that on my Tesla. And when the batteries need replacing, I'll do that too.
Tesla can miss a few production goals. As a shareholder, I'll review their performance, weigh their goals with how they are or aren't changing the world, and either sell or buy more. Haven't sold any yet. And I don't give a rats ass about short term gains or profit.
And yes, I'm a grumpy old curmudgeon, and no, you cannot have my Gran Torino, but I will consider trades for a Model S.
Huh? This isn't a press release, this is part of Electrek's ongoing series of leaks of production rates from someone supposedly working at Tesla. I put "supposed" because you never know with Fred; it could easily just be someone BSing him. That said, there's no shortage of possible legit leakers; there's a display on the lines that ticks up each time a vehicle goes out the door.
Doesn't really matter that much; official delivery numbers come in in just a couple days. It's the rest of the Q3 financials that I'm (and I think most people) are more interested in; we won't get those for another month.
"Who the hell is Nietzche? It's a question stupid people are asking." -- Newscaster, "Jesus Christ Supercop"
Relevant to what? Does the profit or loss on a model 3 change because Elon's in the shitter? Clue - No. It doesn't.
I should use this sig to advertise my book ISBN-13 : 978-1501515132.
It costs about $225 to replace a Tesla battery. I assume you mean the 12v battery that powers things such as the electronics in the cabin and other 12v devices.
If you mean the main battery, that’s a lot harder to say because it’s not something that people need to do. The batteries come with an eight year warranty, mostly with unlimited miles, and Tesla will repair a defective battery pack for free. Virtually all of them are still under warranty.
Tesla’s batteries lose range very slowly, and even on a car that’s a decade or two old, it’s not likely that a person would replace a battery to increase range. The average US driver travels under 40 miles per day, and most Tesla owners plug in at night to charge at home. For day to day use, owners would never see a difference.
Even for trips of hundreds of miles, there’s a good chance that somebody with a 15 year old Tesla will be able to make the trip with the same number of charging stops as were required when the car was new. But if it turns out that it takes an extra stop each way, then it’s still unlikely that people would replace the battery. People who take an annual road trip or two who might save a couple of hours on each one at the most aren’t going to want to spend thousands of dollars on a new battery. The book value on a car that old might be only a few thousand dollars. If $2000 is out of the question to save two hours a year, then a more realistic price would be even more out of the question. If you buy a Tesla, it’s fair to assume that the main battery will never need to be changed.
Lets just pretend labor is free, and you purchased a Model S P100D in 2016. In 2016 the cost per kWh was 227. The 100kWh battery would have cost $27,700. That same battery if Elon is the believed will cost Tesla $100 per kWh by the end of 2018, for a total battery replacement cost of $10,000. Of course that car is still under under warranty until 2024 so a replacement would not be of concern the current owner.
Paul Marston, former Software Engineer (2001-2003)
Answered Aug 21 Author has 467 answers and 55.1k answer views
Batteries in a hybrid vehicle can cost multiple thousands - so much in fact, that they are in effect non replaceable - the car costs less!
I’m not sure if there is a separate 12v battery for the car (as ALL the batteries have the same nominal voltage.) https://www.quora.com/What-is-...
Companies don't live and die by theatrics. They live and die by their fundamentals. The stock jumps and declines based on gotchas, but ultimately it's deliveries, margins, profits, etc that matter. Whether Elon is CEO, a non-executive employee with the newly created job title "Not A CEO", or no longer connected Tesla at all - and whether said status is determined one week from now or ten years from now - the company's fundamentals remain what they are.
Go look at a graph of Tesla's spikes and drops over the past year. How many of those spikes and drops can you, at a glance, remember why they happened? I'm betting it's a pretty small percentage of them. Yet at the time, each drop was people freaking out over something or other in the news, and each spike was people getting overconfident that their good news couldn't possibly be overcome.
Day traders and options traders live and die by these spikes, but for people with a mid to long-term perspective, they're really just static. Lows are a chance to expand your holdings. Highs are a chance to thin your holdings if you think you're overexposed or if you think there's a good chance that the current good news is going to be FUDded back. But in general you hold over your anticipated timeframe until the premises that you based your investment and timeframe on are either confirmed or disproven.
In my case, the premise is "two quarters of profitability with an extremely and ongoing growth story". The timeframe is "Q4 report or later, but unlikely more than two quarters later". Time will tell. In the meantime? Enjoy the noise. :)
"Who the hell is Nietzche? It's a question stupid people are asking." -- Newscaster, "Jesus Christ Supercop"
Also, if you think Tesla needs Musk to thrive... "meh". Did Paypal need him? Don't get me wrong, I like his extremely aggressive moat-bridging business strategies, and am somewhat annoyed about the SEC taking actions that 99% of TSLA shareholders don't want, in order to "protect shareholders". But once you get to a certain point, a company runs on its own momentum. Did Apple just collapse after Jobs died? No, it went on to become the first trillion dollar public company.
I have no clue, BTW, what his odds are against the SEC. I thought the SEC settlement offer was surprisingly mild - it didn't even require him to admit fault. And settlement offers seemingly most commonly call for a five year ban from serving as CEO, but they only called for a two year ban in this case. I don't know why the SEC made such a mild offer, whether it was some form of generosity, or whether they think that they might actually lose this case. But they clearly wanted to settle.
"Who the hell is Nietzche? It's a question stupid people are asking." -- Newscaster, "Jesus Christ Supercop"
50k in a quarter is a very solid number for a sedan in the US. 100k would be amazing - better than Camry sales. Dunno about OP, but I certainly would have bought more.
I would say an active SEC investigation looking to remove the CEO, and a couple of potential DOJ investigations are more relevant.
That won't play out in the next 6 months, which is longer than I plan on holding the stock. And if Tesla survives with stable Model 3 production, are they really worse off without Musk? That might be another buying opportunity.
Socialism: a lie told by totalitarians and believed by fools.
and am somewhat annoyed about the SEC taking actions that 99% of TSLA shareholders don't want, in order to "protect shareholders"
Goldman Sacs must be short TSLA, since that's the only "shareholders" the SEC seems to care about - probably because the SEC is mostly Goldman alums.
Socialism: a lie told by totalitarians and believed by fools.
Well, if the profit or loss does not depend on how well the CEO is running the company, what's the point of having one?
All I want is a secure system where it's easy to do anything I want. Is that too much to ask ~~ Randall Munroe
> ban from serving as CEO, but they only called for a two year ban in this case
It was a two year ban on being *chairman*, not being CEO. Which is ironic, I think most people agree some amount of board reform would be good for TSLA.
> I don't know why the SEC made such a mild offer,
Because the SEC neither wants to allow this conduct, nor do they want their enforcement action to be cited as a reason for the failure of TSLA. It was a very reasonable, middle-ground approach to enforcement, IMO.
We used to say: cost, quality and speed.... choose two. Then some manager someone whined we should do all three. No, itâ(TM)s always choose two.
I think we can say they spent their way up to speed.
This is video of the Tesla Board inspecting the production line.
When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
...SEC taking actions that 99% of TSLA shareholders don't want, in order to "protect shareholders"...
What the cult of Tesla wants is not determinative of whether or not Musk broke the law.
I don't always use unix-like operating systems; but when I do, I prefer FreeBSD.
You post under this handle, under several others, and anonymously too. So what?
A girl's gotta make a living between her webcam sessions, even if she's got a penis.
Yep, and their customers got the low quality as a compromise, like the longs got the low price instead of a "short squeeze".
Felon Musk boy delivering.
Companies don't live and die by theatrics. They live and die by their fundamentals
This much is true.
The fundamentals of Tesla are tens of billions of debt, an incompetent bunch of loudmouths at the top, 85% lemon rate, bait-and-switch marketing, constant "retooling" because of short-sighted and arrogant wilful ignorance of the best practices in the industry, abysmal customer service and complete lack of afterservice for the cars.
And, recently, securities fraud.
Bankruptcy next year secured.
Also, if you think Tesla needs Musk to thrive... "meh". Did Paypal need him?
No. The people who created Paypal let him crawl in because he had a cool domain name. But they found out what a swindler he was, and he got kicked out promptly.
You'll find the detractors here do not have that capability of separating the 2 things. Virtually every negative prediction they've made about the cars and their production has failed so they try desperately try elsewhere to distract you from their failures.
"The hands that help are better far than lips that pray." - Robert Ingersoll (1833-1899)
with your level of trolling nonsense, its not surprising you post as an AC.
"The hands that help are better far than lips that pray." - Robert Ingersoll (1833-1899)
How do his twitter comments affect how the company is run?
No the SEC is made up of future Goldman employees, that's how it works
> Batteries in a hybrid vehicle can cost multiple thousands - so much in fact, that they are in effect non replaceable - the car costs less!
FUD... Usually you do not need to replace whole battery, just failed cells, to restore battery to a working condition. And that can be done even DIY. For comparison, a working NiMh cell for Toyota Prius costs somewhere around 30€ and typically (unless last stat in S.P.E.C.I.A.L approaches to 0) you need to replace 1-3 cells.
Bus as your quote says, batteries tend not to fail before car itself... We have 2009 Prius and it still shows no signs of battery fatigue.
>cost, quality and speed.... choose two. ;)
By looking at prices, I would think Tesla have chosen last two.
quite frankly if he really did break the law in this case,
then IMHO that law is just plain wrong
Actually the phrase is "at *most* two".
I've worked on many shit-shows where we failed to get any of them.
Yeah, that's the most blatant "Don't look at the elephant in the room" press release I've seen. Unfortunately, this elephant is a bit too big not to notice.
To be fair.... Should they just go: "Welp, there's some bad news going on right now. Let's just toss anything positive in the trash."?
50k in a quarter is a very solid number for a sedan in the US. 100k would be amazing - better than Camry sales. Dunno about OP, but I certainly would have bought more.
That's an extreme form of gambling. You would be betting on Tesla becoming a powerhouse of the car industry. Let's look at some company-wide numbers:
"Toyota Motor Sales U.S.A. said vehicle deliveries in the U.S. fell 2 percent to 223,055 in August, which had the same number of selling days in 2017."
That's over 200,000 in one month.
Now let's look at a comparison of market capitalization in this article from one year ago:
"The top automakers, their market caps as of this week (June 19), and 2016 worldwide sales are:
1. Toyota, $155.88 billion market cap, 10.1 million sales
2. Daimler, (Mercedes-Benz), $70.35 billion, 3 million sales
3. Volkswagen, $67.24 billion, 10.3 million sales
4. Tesla, $60.28 billion, 76,230 sales
5. BMW, $54.77 billion, 2.4 million sales
6. GM, $51.45 billion, 9.6 million sales
7. Ford, $44.65 billion, 6.7 million sales"
Is it possible Tesla can eventually achieve numbers that justify their market cap? Yes. But missing in that price is the very real risk that they won't.
The share price falling further is bad news for shorts?
tell us how your experiment of replacing old, dead cells in a battery with new ones. the exact reason why they say never mix old and new batteries in a circuit. it will cause a discharge from other cells and potentially explode
https://www.marketwatch.com/in...
Annual consolidated net income
* 2013 loss 74.01 Million
* 2014 loss 294.04 Million
* 2015 loss 888.66 Million
* 2016 loss 773.05 Million
* 2017 loss 2.24 Billion (With a "B")
So far in 2018
* Quarter ending Mar 31, 2018 loss 709.55 Million
* Quarter ending June 30, 2018 loss 717.54 Million
i.e. 1.427 Billion total loss first half of 2018
I'm not repeating myself
I'm an X window user; I'm an ex-Windows user
>> If it's over 8 years old, you may have to replace the battery
That'S FUD.
aaaaaaa