Tesla DOULED Sales in the third quarter! DOUBLED!
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Is that a crime?
TESLA
5 Key Takeaways from Tesla's Q3 Earnings Call
It was Elon Musk's last earnings report as company chairman after an SEC settlement, at least for the next three years.
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Hayden Field
ENTREPRENEUR STAFF
Associate Editor
October 25, 2018
Tesla today released an earnings report that made shares soar -- and Wall Street analysts scratch their heads.
Earnings came out to $2.90 a share versus expected losses of close to 20 cents per share. The company’s net income, $311.5 million, is a far cry from its losses of $619.4 million this time last year. And quarterly revenue topped that of a year ago by more than 70 percent.
This was Tesla’s third profitable quarter, as well as CEO Elon Musk’s last full quarter, for the time being, as chairman of the company he founded 15 years ago. As part of a $20 million SEC settlement (with another $20 million being paid out by Tesla itself), Musk agreed to step down as Tesla's chairman of the board within 45 days. He is to be replaced by an independent chairman and will be unable to seek re-election for three years, though he plans to stay on as CEO. The SEC fraud charges originally sought to bar Musk from serving as an officer or director of any public company in the U.S.
“I’ve never heard of a case where the company’s customers actually cared about the future of the company so much that they volunteered their time to help the company succeed,” Musk said on the Wednesday earnings call. “That’s amazing. You don’t see that anywhere. That chokes me up, actually.”
Here are five key takeaways from the car company’s Q3 results.
1. Profitability
Musk said he’d prioritized proving that Tesla could be sustainably profitable this quarter and that he’s excited for what lies ahead. Tesla’s net income for the quarter was a reported $300 million, and the company increased its cash equivalent by $731 million. The gross margin for the Model 3 was greater than 20 percent, and Musk also mentioned the higher-than-expected revenues and profitability in Tesla’s energy business, saying it may have been the company’s best quarter ever for solar.
In Q4, Tesla expects to report another positive net income and, aspirationally, for all quarters moving forward -- barring quarters where a significant debt repayment is due. But even for those -- like Q1 of 2019, for example -- Musk said he expects the company will likely be “flat in cash flow” by the end of the quarter.
2. Model 3 production
Model 3 production stabilized this quarter, and Musk said the company delivered more cars this quarter than in all of 2016. The new model became the bestselling car in the country in terms of revenue -- and the fifth in terms of volume.
Next year, Tesla will bring the Model 3 to Europe and China, and Musk said those regions' mid-size sedan markets may be double that of the U.S. Musk was hesitant to speak to weekly unit production goals for the next three months, but he said it would take minimal capital expenditures to reach 7,000 units a week. Above that, he said it’s more difficult to predict quarterly, but his long-term Model 3 production goal -- a “guess,” he clarified -- is 7,000 to 10,000 units a week in the U.S. (and 5,000 to 8,000 units a week in the rest of the world).
3. Vehicle safety
Tesla said the Model 3 received a five-star rating in every category and subcategory when it came to government safety standards, as well as the lowest probability of injury for any car ever tested by the National Highway Traffic Safety Administration (NHTSA). The company is especially proud of the extended crumple zone for all three of its models. In the case of a head-on collision, the car’s hood will dent in further than usual -- meaning a potentially less high-impact experience for both passengers in the Tesla and passengers in the other car.
“Some companies game the system,” Musk said, adding that he believes some car companies make a point to strengthen sections of a car they know will be tested and neglect others. Tesla, he said, did the opposite and tested the weakest points of its cars. “We anti-game the system,” he said. “A lot of people think safety is boring, but not at Tesla.”
4. Autopilot and AI
Tesla will soon roll out its “most advanced autopilot feature ever,” which will launch a new set of AI neural networks to provide an enhanced view of everything happening around any given Tesla vehicle. It should allow for faster-functioning, larger and more expensive neural networks, and industry experts say that the larger a network -- and the more neurons added to it -- the more accurate its predictions. Tesla's director of AI, Andrej Karpathy, said Tesla has already trained networks of that size but couldn’t deploy them until now due to computational constraints. That will change, he said, in the autopilot feature’s next iteration. This could also look like automatic lane changes, better capacity to handle forks in a road and an advanced capability for taking complicated exits. Future versions of the feature will allow customers to waive the mandatory human permission before making a lane change.
5. Future outlook
Musk pointed to a long-term economic model where a number of autonomous cars will be dedicated solely to ride-hailing, but consumers will also be able to share their cars with others at will -- resembling a combination of Uber, Lyft and Airbnb. “We absolutely see the future as sort of a shared electric autonomy,” he said.
Since Tesla will eventually have “millions of cars in the field” with the capability of full autonomy, Musk predicts that the company will be in the strongest position for the long term among its competitors. “No one else will have that,” he said.
The company also is on a “mission” to create a $35,000 car, Musk said, and that could be a reality in as soon as six months. Another of his goals: Reduce the average time it takes for a car to reach a customer from the factory to less than 10 days. The problem now, he said, is that 10 days equals about $750 million in capital for the company -- and since the bank loans Tesla can access account for just about 85 percent of vehicle manufacturing costs (or 70 percent of the sticker price), local factories will be vital for capital efficiency. Musk said he eventually aims to reduce the timeframe to less than seven days worldwide.
Copyright © 2018 Entrepreneur Media, Inc. All rights reserved.
5 Key Takeaways from Tesla's Q3 Earnings Call
It was Elon Musk's last earnings report as company chairman after an SEC settlement, at least for the next three years.
NEXT »
Hayden Field
ENTREPRENEUR STAFF
Associate Editor
October 25, 2018
Tesla today released an earnings report that made shares soar -- and Wall Street analysts scratch their heads.
Earnings came out to $2.90 a share versus expected losses of close to 20 cents per share. The company’s net income, $311.5 million, is a far cry from its losses of $619.4 million this time last year. And quarterly revenue topped that of a year ago by more than 70 percent.
This was Tesla’s third profitable quarter, as well as CEO Elon Musk’s last full quarter, for the time being, as chairman of the company he founded 15 years ago. As part of a $20 million SEC settlement (with another $20 million being paid out by Tesla itself), Musk agreed to step down as Tesla's chairman of the board within 45 days. He is to be replaced by an independent chairman and will be unable to seek re-election for three years, though he plans to stay on as CEO. The SEC fraud charges originally sought to bar Musk from serving as an officer or director of any public company in the U.S.
“I’ve never heard of a case where the company’s customers actually cared about the future of the company so much that they volunteered their time to help the company succeed,” Musk said on the Wednesday earnings call. “That’s amazing. You don’t see that anywhere. That chokes me up, actually.”
Here are five key takeaways from the car company’s Q3 results.
1. Profitability
Musk said he’d prioritized proving that Tesla could be sustainably profitable this quarter and that he’s excited for what lies ahead. Tesla’s net income for the quarter was a reported $300 million, and the company increased its cash equivalent by $731 million. The gross margin for the Model 3 was greater than 20 percent, and Musk also mentioned the higher-than-expected revenues and profitability in Tesla’s energy business, saying it may have been the company’s best quarter ever for solar.
In Q4, Tesla expects to report another positive net income and, aspirationally, for all quarters moving forward -- barring quarters where a significant debt repayment is due. But even for those -- like Q1 of 2019, for example -- Musk said he expects the company will likely be “flat in cash flow” by the end of the quarter.
2. Model 3 production
Model 3 production stabilized this quarter, and Musk said the company delivered more cars this quarter than in all of 2016. The new model became the bestselling car in the country in terms of revenue -- and the fifth in terms of volume.
Next year, Tesla will bring the Model 3 to Europe and China, and Musk said those regions' mid-size sedan markets may be double that of the U.S. Musk was hesitant to speak to weekly unit production goals for the next three months, but he said it would take minimal capital expenditures to reach 7,000 units a week. Above that, he said it’s more difficult to predict quarterly, but his long-term Model 3 production goal -- a “guess,” he clarified -- is 7,000 to 10,000 units a week in the U.S. (and 5,000 to 8,000 units a week in the rest of the world).
3. Vehicle safety
Tesla said the Model 3 received a five-star rating in every category and subcategory when it came to government safety standards, as well as the lowest probability of injury for any car ever tested by the National Highway Traffic Safety Administration (NHTSA). The company is especially proud of the extended crumple zone for all three of its models. In the case of a head-on collision, the car’s hood will dent in further than usual -- meaning a potentially less high-impact experience for both passengers in the Tesla and passengers in the other car.
“Some companies game the system,” Musk said, adding that he believes some car companies make a point to strengthen sections of a car they know will be tested and neglect others. Tesla, he said, did the opposite and tested the weakest points of its cars. “We anti-game the system,” he said. “A lot of people think safety is boring, but not at Tesla.”
4. Autopilot and AI
Tesla will soon roll out its “most advanced autopilot feature ever,” which will launch a new set of AI neural networks to provide an enhanced view of everything happening around any given Tesla vehicle. It should allow for faster-functioning, larger and more expensive neural networks, and industry experts say that the larger a network -- and the more neurons added to it -- the more accurate its predictions. Tesla's director of AI, Andrej Karpathy, said Tesla has already trained networks of that size but couldn’t deploy them until now due to computational constraints. That will change, he said, in the autopilot feature’s next iteration. This could also look like automatic lane changes, better capacity to handle forks in a road and an advanced capability for taking complicated exits. Future versions of the feature will allow customers to waive the mandatory human permission before making a lane change.
5. Future outlook
Musk pointed to a long-term economic model where a number of autonomous cars will be dedicated solely to ride-hailing, but consumers will also be able to share their cars with others at will -- resembling a combination of Uber, Lyft and Airbnb. “We absolutely see the future as sort of a shared electric autonomy,” he said.
Since Tesla will eventually have “millions of cars in the field” with the capability of full autonomy, Musk predicts that the company will be in the strongest position for the long term among its competitors. “No one else will have that,” he said.
The company also is on a “mission” to create a $35,000 car, Musk said, and that could be a reality in as soon as six months. Another of his goals: Reduce the average time it takes for a car to reach a customer from the factory to less than 10 days. The problem now, he said, is that 10 days equals about $750 million in capital for the company -- and since the bank loans Tesla can access account for just about 85 percent of vehicle manufacturing costs (or 70 percent of the sticker price), local factories will be vital for capital efficiency. Musk said he eventually aims to reduce the timeframe to less than seven days worldwide.
Copyright © 2018 Entrepreneur Media, Inc. All rights reserved.
I like Tesla however there are lots of misinformation in this thread. the model 3 wasn't even revealed when they did the pre-order and amassed all those orders. those that pre-ordered initially waited until they could configure the then revealed design and motor configuration. Currently the avg configuration price is what 60-70k? Have anyone actually sat inside a Model3? From the lack of luxury features and finishes it doesn't feel like a 60-70k car. LOL 60-70k for a car that lack quality control...i.e. the panel gaps etc. Those wanting the low range RWD will most likely cancel as Tesla will soon sell their share of vehicles to no longer be qualified for the federal rebate. Audi, BMW etc are going to enter the EV market, they already have design and tech to match what Tesla is good at.
Low. It's golf cart technology.
Shot dont break fam...
Motors rated for 1 MILLION miles. No transmission, clutch, engine, etc...
No moving parts, no frictions, not much heat... most folks issues are covered under warranty.
Most issues are with comsestic shit or a ECU, hell you don't have to replace breaks due to regenerative braking
300k miles of abuse, 17000 miles per month equaled 10k matainece and repair. And some due to him effectively flooding the car.
05:14PM
1.9K
6'
$10,492 Tesla Model S Maintenance Costs After 300,000 Miles, $0 Charging
September 5th, 2017 by Zachary Shahan
Tesloop has been hitting the road to an absurd degree since it launched in 2015. Averaging approximately 17,000 miles per month on each car, it offers perhaps the best case study yet of what happens to a Tesla vehicle after a lot of driving.
Its first car — and its only Model S, since the Model X is a fundamentally better vehicle for such service — just passed 300,000 miles of service. Such a figure could make a normal fleet manager shake in fear when thinking about the long-term fuel and maintenance costs, but for Tesloop and its Model S (named “eHawk”), the response is: meh.
After those 300,000 miles, eHawk’s maintenance and “fuel” costs have totalled only $10,492. (Update: Some commenters have noted that this calculation didn’t take tires into account and that Tesla replaced the battery after 200,000 miles for some unique reasons … but free of charge.)
Furthermore, the bulk of that cost was just scheduled maintenance fees ($6,900). Another $3,500 was to repair a headlamp after the car drove through deep water — my guess is that the driver had the Lotus Esprit Easter egg turned on and forgot that the car wasn’t actually a James Bond submarine car. Yes, it seems those two items accounted for all of the eHawk’s “maintenance and fuel” costs, which would indicate that the car didn’t spend a dime charging (aside from whatever Tesla priced into the car for Supercharger access).If this sounds like an insanely low maintenance and fuel cost for 300,000 miles of driving, that’s because it is, especially for a car in this class. “Had this been an Mercedes S class, the scheduled routine maintenance and fuel would have been $86,000 ($52,000 maintenance and $36,000* fuel) with 112 days of servicing, or for a Lincoln Town Car $70,000 ($28,000 maintenance and $42,000** fuel) with around 100 days of servicing,” Tesloop writes. The Tesla Model S was in the shop for just 12 days.
Naturally, these benefits are some of the things that stimulated a few other cleantech fanatics and me to start up Tesla Shuttle in Europe. As I indicated just the other day, we spent approximately $70 on charging over our first 17,000 kilometers. Thanks to Tesloop for leading the way!
Also, it’s good to see this quote from Tesloop founder Haydn Sonnad, indicating that the faith he placed in Tesla has been paying off beautifully:
“Over the last two years, we have seen that electric, supercharged vehicles can be deployed at utilization levels unheard of with gas vehicles. And while saving over $60,000 on fuel and maintenance is a substantial economic win, we feel the bigger win is that this car is ready for another 900,000 miles over the next 6 years under its current warranty. A gas car with 300,000 miles would be near the end of its useful lifespan. This means that the economics for mobility services on electric is more attractive than non-electric vehicles by a multiple, and when combined with autonomous driving features, the economic advantage in cost per mile will create unprecedented disruption in the overall automotive industry.”
I’ll just close with one broader statement, since I got a little bit of pushback on my article about our first 17,000 kilometers, even being called a “leech” by one person. It’s easy to see one of our car’s or Tesloop’s eHawk as just “one customer car,” but the fact of the matter is that we are driving many customers in electric Tesla vehicles instead of gas cars and airplanes. 300,000 miles served how many customers? Only Tesloop knows, but the point is that this one car prevented approximately 300,000 miles by gasmobile or airplane. If you take a US driving average of approximately 13,500 miles a year and assume two full years of service in the eHawk, that’s sort of like replacing 22 other cars. Naturally, that’s not a perfect way to look at it, but you get the point.
Your later post corrected the BS above
"2. Model 3 production
Model 3 production stabilized this quarter, and Musk said the company delivered more cars this quarter than in all of 2016. The new model became the bestselling car in the country in terms of revenue -- and the fifth in terms of volume."
Mis info?
Ok model 3 5th best selling car in US, number 1 in revenue in quarter 3.
Tesla has a 32% reservation cancellation rate. And tesla just opened orders for LEMER the mid range model 3 coming in at 45k (256 mi range) and 6 to 10 week delivery.
Tesla model 3 was safest car EVER tested by NHTSA. Bar none, in every category.
None of the companies you named have comparable specs to TESLA vehicles of Today and wont even be produced/sold until 2020. Bt then Tesla will have continued to improve capabilities. Audi Etron in best comparable. Maybe the Jaguar ipace.
Lol
300k miles of abuse, 17000 miles per month equaled 10k matainece and repair. And some due to him effectively flooding the car.
05:14PM
1.9K
6'
$10,492 Tesla Model S Maintenance Costs After 300,000 Miles, $0 Charging
September 5th, 2017 by Zachary Shahan
Tesloop has been hitting the road to an absurd degree since it launched in 2015. Averaging approximately 17,000 miles per month on each car, it offers perhaps the best case study yet of what happens to a Tesla vehicle after a lot of driving.
Its first car — and its only Model S, since the Model X is a fundamentally better vehicle for such service — just passed 300,000 miles of service. Such a figure could make a normal fleet manager shake in fear when thinking about the long-term fuel and maintenance costs, but for Tesloop and its Model S (named “eHawk”), the response is: meh.
After those 300,000 miles, eHawk’s maintenance and “fuel” costs have totalled only $10,492. (Update: Some commenters have noted that this calculation didn’t take tires into account and that Tesla replaced the battery after 200,000 miles for some unique reasons … but free of charge.)
Furthermore, the bulk of that cost was just scheduled maintenance fees ($6,900). Another $3,500 was to repair a headlamp after the car drove through deep water — my guess is that the driver had the Lotus Esprit Easter egg turned on and forgot that the car wasn’t actually a James Bond submarine car. Yes, it seems those two items accounted for all of the eHawk’s “maintenance and fuel” costs, which would indicate that the car didn’t spend a dime charging (aside from whatever Tesla priced into the car for Supercharger access).
If this sounds like an insanely low maintenance and fuel cost for 300,000 miles of driving, that’s because it is, especially for a car in this class. “Had this been an Mercedes S class, the scheduled routine maintenance and fuel would have been $86,000 ($52,000 maintenance and $36,000* fuel) with 112 days of servicing, or for a Lincoln Town Car $70,000 ($28,000 maintenance and $42,000** fuel) with around 100 days of servicing,” Tesloop writes. The Tesla Model S was in the shop for just 12 days.
Naturally, these benefits are some of the things that stimulated a few other cleantech fanatics and me to start up Tesla Shuttle in Europe. As I indicated just the other day, we spent approximately $70 on charging over our first 17,000 kilometers. Thanks to Tesloop for leading the way!
Also, it’s good to see this quote from Tesloop founder Haydn Sonnad, indicating that the faith he placed in Tesla has been paying off beautifully:
“Over the last two years, we have seen that electric, supercharged vehicles can be deployed at utilization levels unheard of with gas vehicles. And while saving over $60,000 on fuel and maintenance is a substantial economic win, we feel the bigger win is that this car is ready for another 900,000 miles over the next 6 years under its current warranty. A gas car with 300,000 miles would be near the end of its useful lifespan. This means that the economics for mobility services on electric is more attractive than non-electric vehicles by a multiple, and when combined with autonomous driving features, the economic advantage in cost per mile will create unprecedented disruption in the overall automotive industry.”
I’ll just close with one broader statement, since I got a little bit of pushback on my article about our first 17,000 kilometers, even being called a “leech” by one person. It’s easy to see one of our car’s or Tesloop’s eHawk as just “one customer car,” but the fact of the matter is that we are driving many customers in electric Tesla vehicles instead of gas cars and airplanes. 300,000 miles served how many customers? Only Tesloop knows, but the point is that this one car prevented approximately 300,000 miles by gasmobile or airplane. If you take a US driving average of approximately 13,500 miles a year and assume two full years of service in the eHawk, that’s sort of like replacing 22 other cars. Naturally, that’s not a perfect way to look at it, but you get the point.
That's just crazy.
Giggling?Your later post corrected the BS above
"2. Model 3 production
Model 3 production stabilized this quarter, and Musk said the company delivered more cars this quarter than in all of 2016. The new model became the bestselling car in the country in terms of revenue -- and the fifth in terms of volume."
It was out sold by Accord, Civic, Camry, corolla. With predictions of being number 1 in volume sales by 2nd quarter next year. Tesla model 3 out sold all cars even in the NON luxry market save for the 4 above, at an average cost of 67k compared to 20k of the 4 cars listed
What's funny?
The above post addressed sales for BMW Benz and luxry vehicles. Some how you missed that.
1 correction final sales. Numbers we just under 85k
Damn you keep trying so hard, just to be more wrong
I would laugh at you but it is not funny anymore
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Tesla model 3 averaged trade in cost 35k when purchased new... again average price of a model 3 sold was over 60k
What other company has customers paying DOUBLE for their new car over ther old Trade in
Guess that's funny, BS, misinformation so never mind
What other company has customers paying DOUBLE for their new car over ther old Trade in
Guess that's funny, BS, misinformation so never mind
LOL cause they are just now delivering the cars pre-ordered. you didn't refute the current quality issues nor paying 45k-60k for a car that feels cheap in comparison to other cars in that price range. The Tesla hype is real and early adopters always get screwed.
Well over 95% of their customers would disagree with you. Not saying there arent issue with quality, but folks love their product. No other automaker can say owners would show up for free to help deliver cars to new customers.
But what does what you just typed have to do with misinfo?
Facts, not feeling or guesses please.
I still dont understand profitability, I guess
The navigation in the car shows all of charging stations within a 50 mile radius
The navigation system displays charging stations. The native Tesla app does not. However, there was a recent update to the app and it has not rolled out to me yet so this could have changed.
UPDATE:
I went back long on TSLA when it touched 250 back on Oct 11 and the stock closed today at 288.5
3rd qtr earnings report came out after the bell - watch where it opens tomorrow! AT LEAST 320!
With 33M shares short and only 4.3M shares traded after hours, there should be an EPIC short squeeze
And that's even though the overall market dropped 600+ points today and will likely continue to fall
Two days since my last update post, so let's see how my "prediction" went: the stock market is down another 500 points already this morning... but hey TSLA is up from 288 to 323! Scared for what might happen over the weekend in Trump's America so depending on what news affects the DJIA this afternoon I'm either gonna take profits before the market closes or set a high sell stop limit - most likely around yesterday's close of 314.
Less than one hour later and TSLA is up 11 more to 334 and rising! SLL now @ 325.
Not (m)any market people on BGOL so I'll focus on money discussions elsewhere...
Tesla will be at 400 by December
Once chairman in accounted
I think people are still looking at just the car sales
Their energy has a chance to surpass the auto. The way they have dropped cost of energy storage is amazing, and once that solar roof lights up....
Between powerwall
Solar roof (not panels)
The ability to scale battery energy storage with battery farms
Hints of home/industrial AC units
Tesla Energy will out perform the cars
Solar roof (not panels)
The ability to scale battery energy storage with battery farms
Hints of home/industrial AC units
Tesla Energy will out perform the cars
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