Jump to content
  • William Maley
    William Maley

    Tesla's Posts A $282 Million Loss In the First Quarter

    Sign in to follow this  

      But Tesla is moving its 500,000 vehicle production target from 2020 to 2018

    Despite posting $1.1 billion in revenues for the first quarter ($1.6 billion under non generally accepted accounting principles - GAAP), Tesla reported a net loss of $282 million for the quarter. Compared to the last quarter, Tesla made less in revenue, but the loss was slightly less. Tesla credits this to a careful watching of its spending. Tesla notes that its cash on hand - $1.4 billion - "does not include any meaningful cash flow from Model 3 reservations," but a fair chunk of that reservation money was used to repay back a $430 million credit line.

     

    This isn't the big news as it lines up with what analysts were expecting. It was Tesla's announcement of moving its timeline to produce 500,000 vehicles a year from 2020 to 2018.

     

    “Increasing production fivefold over the next two years will be challenging and will likely require some additional capital, but this is our goal and we will be working hard to achieve it,” Musk said in a letter to shareholders.

     

    This is most likely due to the strong demand for the Model 3 which at the time of this writing has 400,000 reservations.

     

    Tesla also reiterated plans to produce 80 to 90,000 vehicles for 2016. In the first quarter, Tesla built 15,510 vehicles - 12,851 Model S sedans and 2,659 Model X crossovers. The latter model has been having a number of issues from windshield suffering from 'double vision' distortion to the falcon doors not closing. When asked about the quality issues during the call with analysts, Musk said he has a sleeping bag near the production line that he uses “quite frequently.” We're assuming that he is watching the production line to see if there are any issues coming up.

     

    Source: Automotive News (Subscription Required), Autoblog, Tesla

     

    Sign in to follow this  


    User Feedback

    Recommended Comments

    12851 Model S's is 51,404 annually. Tesla sold 52,580 last year, of which around 52,375 were Model S's.

    Model X was predicted to be at a 750 unit/wk production rate, but perhaps quality issues are still a major hurdle, as Model X production in the first quarter is still only about 200 units/wk. Or maybe Jan/Feb were unusually low.

     

    Musk wants to sell 90,000 units this year but is only on pace to build 62,000.

     

    Would really like to know what kinds expansions are going on behind the scene to make this prediction plausible.

    Share this comment


    Link to comment
    Share on other sites

    It isn't that bad of a loss, but at some point they need to get this production up.  I think buyers and the share holders are still willing to wait, but if this time next year they are losing money and struggling to fill orders, there might be some revolt.  On the flip side, if Elon can meet his 90,000 unit goal and the 500,000 by 2020 or whatever he is shooting for, they could hit it big and make money hand over fist.  It will be interesting to see how it plays out, I hope they succeed, I like the idea of more wide spread electric cars (good electric cars, not crap like the Leaf).

    Share this comment


    Link to comment
    Share on other sites

    Sergio Marchionne would get pillored for making such sales predictions. But at least FCA turned a profit last quarter.

    • Downvote 2

    Share this comment


    Link to comment
    Share on other sites

    Well the problem I see with what math you use Balth for the "on pace" determination is that it isn't forward looking, because you're not accounting for the growth rate. What I mean is the factor by which the production rates grow.

     

    Two years ago Tesla delivered 25,000 vehicles. The next one, 50,000. This one, perhaps 80,000 to 90,000.

     

    From there...I think it's pretty clear they're gonna need a fairly sizable infusion of cash from somewhere. Probably an equity offering.

     

    Hey, all the Tesla patents are out there. It's not like Sergio doesn't have the means to actually follow through copying Tesla and making a Model 3 much sooner. That alone would be far smarter than investing in anything Fiat.

    Share this comment


    Link to comment
    Share on other sites

    It's straightforward; the 'math' is based on the just-released Q1 number from Tesla. 

    They may indeed hit 80-90K this year, we'll see. 90K is obviously almost doubled from '15.

    The growth rate is very incremental. With 2016 25% in the books, they are actually down on Model S sales.

     

    Double sales again in '17 and Tesla could see 175K.

    But doubling it again in '18 is 'only' 350K, or a far cry from "500K".

    It's really a towering claim ("500K by 2018"). 

    • Upvote 1
    • Downvote 1

    Share this comment


    Link to comment
    Share on other sites

    Yeah, but it's not adjusted for the growth rate.

     

    You don't base production numbers from one quarter. It gives you a distorted number for a company still expanding its production capabilities.

     

    Otherwise, what, based on Q1 2014, you'd expect them to continue to build only 25,000 cars in 2015?

     

    If you don't account for the growth rate, basically the exponential factor, it is NOT straightforward, because you get really a meaningless number.

     

     

    And where did I say 500k was easily possible? Of course it's gonna be hard. But they can do it, if they get the cash infusion needed to do so.

    Share this comment


    Link to comment
    Share on other sites

    Ahh, I get what you're saying now.

    You are correct; of course Q1 does not necessarily indicate 2016's total sales, but that's why I said 'on pace for'...

     

    ...because I'm not aware there's much of a 'growth rate' going on. Model S is down slightly, and Model X may have just gotten to stated production goals, when it was supposed to be that out of the gate in Sept. The established pattern @ Tesla, and likewise; my point- is that the timetables & totals are always behind stated goals. I was boggled when  Musk moved that goal up BY TWO YEARS recently.

     

    I'll go out on a limb here and say there's NO WAY Tesla reaches even 375,000 units (75% of the stated 500K) by the end of 2018.

    Edited by balthazar

    Share this comment


    Link to comment
    Share on other sites

    I believe Tesla will hit 250K units by 2018 only half of his prediction and I think late 2018 to early 2019 for Tesla 3 models to be delivered.

     

    I also will state that GM Chevy BOLT will eat MANY of the Pre Orders once it is out and people can drive it.

    Share this comment


    Link to comment
    Share on other sites

    That's good. Elon Musk- many people think he has a big ego - he does. But he wants other Electric cars to suceed in as so much as even supplanting Tesla, and making sure the industry changes, and moves even further forward.

     

    Yeah, electric is mired in own problems, like the carbon emissions of building batteries....but at this point we all know making any car is filthy and polluting.

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites

    12851 Model S's is 51,404 annually. Tesla sold 52,580 last year, of which around 52,375 were Model S's.

    Q2 numbers are out.

    Q1 Model S sales : 12,851.

    Q2 Model S sales : 12,420.

     

    Q1 Model X : 204

    Q2 Model X : 2400.

     

    That's a to-date half-year sales total of 27,875.

     

    Musk wants to sell 90,000 units this year but is only on pace to build 62,000.

     

    Adjusted sales pace for 2016 : 55,750.

     

    Musk stated he wanted to sell 90,000 in 2016.

     

    Not seeing the exponential 'sales growth' so far.

    Share this comment


    Link to comment
    Share on other sites

     

    12851 Model S's is 51,404 annually. Tesla sold 52,580 last year, of which around 52,375 were Model S's.

    Q2 numbers are out.

    Q1 Model S sales : 12,851.

    Q2 Model S sales : 12,420.

     

    Q1 Model X : 204

    Q2 Model X : 2400.

     

    That's a to-date half-year sales total of 27,875.

     

     

     

    Musk wants to sell 90,000 units this year but is only on pace to build 62,000.

     

    Adjusted sales pace for 2016 : 55,750.

     

    Musk stated he wanted to sell 90,000 in 2016.

     

    Not seeing the exponential 'sales growth' so far.

     

    Nope EV is for long term thinkers and long term owners of auto's, with cheap gas many people who only see an auto as a 2-3 year ownership before trading it in on the newest thing is going to hurt EV sales.

    Share this comment


    Link to comment
    Share on other sites

    Sergio Marchionne would get pillored for making such sales predictions. But at least FCA turned a profit last quarter.

    Real easy to turn a profit when you get to rely on Jeep and RAM to make up for the rest of your $h!ty Italian product. If only Musk had that to fall on.

    Edited by surreal1272

    Share this comment


    Link to comment
    Share on other sites


    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By Drew Dowdell
      After seeing its sales slide during the first quarter of this year, Tesla needed to come up with an incentive to help boost sales of the sagging Model-X and Model-S.   In that effort, Tesla is returning the offer of free SuperCharging on all Model-S and Model-X sold.  The plan was last offered in 2018 and then ended after Elon Musk called the plan unsustainable. 
      Telsa has been making changes to their lineup and pricing almost monthly since the beginning of 2019, so this could be a short term offer or it could stick around longer. Tesla buyers who already purchased their car are out of luck though, the offer only extends to new purchases. 

      View full article
    • By Drew Dowdell
      After seeing its sales slide during the first quarter of this year, Tesla needed to come up with an incentive to help boost sales of the sagging Model-X and Model-S.   In that effort, Tesla is returning the offer of free SuperCharging on all Model-S and Model-X sold.  The plan was last offered in 2018 and then ended after Elon Musk called the plan unsustainable. 
      Telsa has been making changes to their lineup and pricing almost monthly since the beginning of 2019, so this could be a short term offer or it could stick around longer. Tesla buyers who already purchased their car are out of luck though, the offer only extends to new purchases. 
    • By Drew Dowdell
      Over the weekend, Tesla CEO Elon Musk commented on Model Y production.  Originally thought to be slated for production at Tesla's Gigafactory in Nevada, Tesla appears to have changed course. 
      Reported by Bloomberg, Musk said "Right now our default plan is to produce the Y at Fremont." during an interview on the "Ride the Lightning" podcast. "I was skeptical about whether this made sense at first, but my team convinced me the fastest way to get volume production is to do the Y at Fremont."
      In order to free up space in the factory, Tesla plans to move Model S and Model X to a single line, according to current and former employees. Both models have seen sales tumble over the last 6 months as Model 3 sales increased.
      Model Y sits on the same platform as the Model 3 and production is set to start in late 2020. 
      In the same podcast, Tesla made some claims about the upcoming Tesla truck.  He said "It won't look like a normal truck. It's going to be pretty sci-fi" adding "It's going to be a truck that is more capable than other trucks. It will be a better truck than an equivalent F-150 in terms of truck-like functionality. That's the aspiration."  

      View full article
    • By Drew Dowdell
      Over the weekend, Tesla CEO Elon Musk commented on Model Y production.  Originally thought to be slated for production at Tesla's Gigafactory in Nevada, Tesla appears to have changed course. 
      Reported by Bloomberg, Musk said "Right now our default plan is to produce the Y at Fremont." during an interview on the "Ride the Lightning" podcast. "I was skeptical about whether this made sense at first, but my team convinced me the fastest way to get volume production is to do the Y at Fremont."
      In order to free up space in the factory, Tesla plans to move Model S and Model X to a single line, according to current and former employees. Both models have seen sales tumble over the last 6 months as Model 3 sales increased.
      Model Y sits on the same platform as the Model 3 and production is set to start in late 2020. 
      In the same podcast, Tesla made some claims about the upcoming Tesla truck.  He said "It won't look like a normal truck. It's going to be pretty sci-fi" adding "It's going to be a truck that is more capable than other trucks. It will be a better truck than an equivalent F-150 in terms of truck-like functionality. That's the aspiration."  
    • By Drew Dowdell
      After much speculation, it has come to light that Apple did propose to bid on Tesla back in 2013 for $240 a share, higher than the sub-$200 a share Tesla is trading at today, according to CNBC. Analyst Craig Irwin told CNBC that there was a serious bid from Apple and says that multiple credible sources have told him so.  
      Tesla is down more than 46% from its high in August 2018 when CEO Musk tweeted that he had funding secured to take Tesla private at $420 a share via a Saudi Soverign Wealth Fund, but that tweet turned out to be false, Tesla reversed course, and got Musk and Tesla in trouble with the SEC and further cost Musk the Chairmanship of the company. 
      Now that Tesla stock is trading in the sub-$200 range, it becomes a substantially more attractive acquisition target, not only for Apple, but for other companies as well.  The question remains what to do with Tesla's CEO Elon Musk.  Apple's insistence on Musk's departure was apparently what killed the deal back in 2013. 
      Reports are that Apple is working on its own car technology, but acquiring Tesla would substantially boost their progress. 

      View full article
  • Posts

    • '69-70 Stingray coupe, white, very clean, cruisin. circa '85 Corvette coupe, dark blue, very clean, cruisin.
    • I'm not a modern car styling fan but I think the Bolt looks fine, certainly no worse than any other in it's size class. But to those saying the 'Bolt doesn't sell well' are all wrong. This is the typical filter a GM vehicle must always go thru- "it must sell in the 100s of thousands because it's a GM, or it's a flop". Doesn't work that way, certainly not now. Tesla aside (and there, really only the Model 3 applies), the Bolt sells very well…. FOR AN ELECTRIC. The problem is NOT marketing or the looks or the price, it's the #4 selling BEV in the country. It outsells the Model S and is neck & neck with the Model X. The problem is electrics don't sell well compared to IC vehicles. AT ALL. The Bolt is electric. Duh.    
    • That sounds an awful lot like a homophobic insult. Well, just relax there junior.   
    • I will second several points echoed from the past (one of which dfelt already pointed out). The looks are a problem for a lot of folks. It looks like a CUV yet it offers nothing that other CUVs offer, like AWD or 4WD. That kills a huge subsection of potential CUV buyers looking to go green. Second, and this is the big one, has been total lack of marketing, much like the diesels certain folks here crow over. I worked at a Chevy dealership last year and during that time they had exactly one Bolt that sat for almost two months with a $44K price tag on it. Most of the sales people knew jack and $h! about the car and that price was a huge pill to swallow for a lot of folks. All of this had nothing to do with the powertrain and that’s what the dinosaurs don’t get. It has said a million times in the last, that had the EV tech gone in something more like the Equinox, sales would be better (potential high price not withstanding). I don’t know why the EV hater here doesn’t get what has been discussed a thousand times now but those are the simple facts.  Diesels don’t sell for $h! here either and their issues have cost manufacturers BILLIONS. Guess, by your logic, we should give those up too right? Just for you @ocnblu, this article covers the issues facing the Bolt perfectly. Read it, understand it, and move on from your endless troll act.  https://www.google.com/amp/s/www.forbes.com/sites/brookecrothers/2019/07/21/chevy-bolt-the-best-ev-youve-never-heard-of--still/amp/
    • Ah deflection, the favorite practice of the defeated. I actually have every song in my collection that I’ve posted here. The title of the thread is “What are you listening to?” not “Be careful what you post or you may affect Blu’s delicate sensibilities.”. Again, if you have a problem with that, just add me to the “ignore” list in your account settings because I’m not changing a thing. It’s that easy.    And you know exactly what you can do with the insult snowflake.  Part of my actual YEAR OLD playlist that Mr. Delicate has a problem with.    @ocnblu Seek help for that paranoia.    
  • Social Stream

  • Today's Birthdays

    1. Iononic Boy
      Iononic Boy
      (35 years old)
    2. mjdart
      mjdart
      (65 years old)
    3. Nelson Kyle K
      Nelson Kyle K
      (39 years old)
  • Who's Online (See full list)

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...