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
      The Tesla Model 3 nearly broke into the top 10 best selling vehicles in Europe for September 2019, missing the mark by just 217 units.  Overall, sales growth in the EU is strong with 14 markets reporting positive numbers.  Germany came in at 9.1 percent and Italy came in at 6.5 percent.  Battery electric vehicles were up sharply, increasing 119 percent, of which Tesla controlled nearly 50% of that number.  Total Tesla registrations were 19,500 out of the 40,700 BEVs registered.  That put the Tesla Model 3 as the best selling BEV in Europe. 
      For September, the Volkwagen Golf was the best selling vehicle in Europe with 32,398 units registered. 
      Tesla shares jumped 18 percent yesterday after a surprise profit for Q3 of $1.86 per share, up from an expected loss of 42 cents per share. 

      View full article
    • By Drew Dowdell
      The Tesla Model 3 nearly broke into the top 10 best selling vehicles in Europe for September 2019, missing the mark by just 217 units.  Overall, sales growth in the EU is strong with 14 markets reporting positive numbers.  Germany came in at 9.1 percent and Italy came in at 6.5 percent.  Battery electric vehicles were up sharply, increasing 119 percent, of which Tesla controlled nearly 50% of that number.  Total Tesla registrations were 19,500 out of the 40,700 BEVs registered.  That put the Tesla Model 3 as the best selling BEV in Europe. 
      For September, the Volkwagen Golf was the best selling vehicle in Europe with 32,398 units registered. 
      Tesla shares jumped 18 percent yesterday after a surprise profit for Q3 of $1.86 per share, up from an expected loss of 42 cents per share. 
    • By Anthony Fongaro
      EV-curious. That’s what I would call myself. Someone that is interested in EVs but just hasn’t found the right one. There are many aspects of an EV that is appealing to me. Instant torque, quick acceleration, the ability to charge at your house or apartment, and the continuation of creating semi-autonomous driving. It’s all so exciting! I’m ready to go out and trade in my 2016 Volkswagen GTI for one now! Or am I? Let’s take a quick look at a small field of electric vehicles, starting with the brand new 2020 Porsche Taycan.
      The release of the 2020 Porsche Taycan is a feat in and of itself. The car itself is downright sexy, is has a handsome interior, and performance that is pure Porsche. Over 700 HP for the Turbo S model is impressive. It also costs what you would expect an electric super-Porsche would be since the range topping Taycans are coming out first. These are the Turbo and Turbo S which cost over $150,000. After these come onto the market, less expensive and less powerful versions will come. Would this be the car that I will buy? Sure, once I get that CMO position at a major company. This is a dream electric car, but not one that I would consider just yet. 
      What about an attainable electric car? There are a few on the market that cover the bases. Vehicles like the Hyundai Kona Electric, Chevy Bolt, Nissan Leaf, and others have good to respectable range, decent features, and are not the most expensive vehicles. Average prices of $40,000-$45,000 is a bit steep, but electric cars usually command a premium over gasoline vehicles. They also have good driving aids such as blind spot monitoring and adaptive cruise control, something that my current car has and is top priority for me. They’re all very good cars but with flaws such as build quality and designs that keep me from considering one. My problem is simple: performance. Electric cars have instant torque at 0 RPM and can be extremely fast. These EVs just don’t cut the mustard for me since they are more about range than blistering speed. For around $45,000, I can get a gas-powered car such as a Genesis G70 3.3T that is faster, has better range, and the safety features I want. Let’s continue from good electric vehicles to “the best”.
      Right now, you are probably thinking: “Anthony, you are forgetting the king of electric vehicles. They are synonymous with electric cars and have a huge cult following.” Guess who that is? Yes, that is of course Tesla. You can’t write about electric cars without talking about Tesla. They are a very S 3 X Y R brand indeed. The Model S introduced expensive but seriously quick electric vehicles. The X brought us an odd but much-needed crossover. The 3 is the bread-and-butter maker with a starting price around $40,000, and acceleration that beats almost all vehicles in its class. The Y hasn’t come out yet but is a crossover version of the 3, and the Roadster is a $250,000 supercar. Even though there are three models currently available, I will focus on the Model 3 Performance since that is the one I am most interested in.
      There is a lot to like about the Model 3 Performance. It has “performance” in its name and with 450 HP, it is one of the quickest sedans I’ve ever driven. The instant torque from the motors is intoxicating and it handles well for a heavy vehicle. Does it tick all the boxes to convert to a Tesla-fanatic? No. Why? The interior. I am not a fan of controlling absolutely everything with a touchscreen and not having my speedometer in front of me.
      The Model 3 Performance can have semi-autonomous driving, but it is a $7,000 option. Tesla’s Autopilot driver-assist system is standard and is regarded to be one of the best, if not the best driver-assist system. Tesla has sold over 250,000 Model 3 vehicles and it is a genuinely amazing feat for a young company. The range is good at over 310 miles. Pricing starts at $55,000 and is fully-loaded around $64,000. If you are okay with the minimal interior and styling, get yourself a Model 3. I personally am not a fan of either of those, so onward we go.
      This brings me to a car I am waiting for: The Polestar 2 fastback. Polestar used to be a sub-division of Volvo, like AMG is to Mercedes-Benz. You can still get Polestar-tune Volvos, but Polestar has branched out into their own brand. The Polestar 2 is their first all-electric car. It has over 250 miles of range, 400 HP, and most import to me, gauges that are straight in front of the driver. The design is bold yet looks like an even more modern version of a Volvo. Since Polestar is a sporty company, the performance upgrades include upgraded shocks, brakes, and bigger wheels with Swedish gold seat belts. You get this package mainly for the gold seat belts. Is it pricey at over $60,000? Yes, but it feels justified for the 408 hp and range of 275 miles. 0-60 is said to be around 4.7 seconds but I suspect it will be lower. Will they sell Tesla Model 3 numbers of them? I highly doubt it since they area new brand, but it should be a great competitor to the Tesla Model 3.
      I like the concept of electric vehicles. I know that one day, there will be one charging at my house. Am I ready for an electric car? Yes. Is there any on the market that jumps out at me and gives me the satisfaction I have for my current car at a reasonable price of around $40,000 new? No.
      Do not get me wrong; there are electric cars that make sense for a multitude of situations. Range and charging are getting better, more features are getting added, and manufacturers are creating electric-only ranges of vehicles that will bring down the costs of more performance-oriented vehicles. I can go in-depth about certain electric cars in a future article. For now, I think I will keep my car and wait until something really catches my eye. That, or wait a few years and hope the Porsche Taycan depreciates enough that I can buy one.
       

      View full article
  • Posts

    • It still sucks, but I think you will come out much better in the next place you decide to go. Market for the most part is still solid, so I know you will find a new place quick, if not before the other place ends! I was bummed when I got laid off from my automotive job- but besides missing the cars, I find this one more fun. Reminds me to update my resume-though I kinda shy from it. I updated my Monster account, and the calls just won’t stop..... 😮 
    • The Jalopnik link makes a mistake in expressing an opinion that GM/Chevy had Tesla in their sites. Had Tesla products as a benchmark... The only thing I gather Chevy/GM had on benchmarking Telsa was the price point in which the Bolt was to be sold at as compared to the Model 3.  From the EV1, all the way to Volt gen 1 and 2, the Cadillac ELR, and then the  Bolt to the mild hybrid stuff on Malibus and Tahoes,  nothing suggests that GM ever wanted to do performance oriented EVs.  And GM could do a performance oriented EV if they chose to do so.  They took a different market approach.  Tesla has found that sweet spot. It does not mean that GM's approach is wrong vis-a-vis Tesla's approach. It just means that GM's approach and its choice of its product's packaging may be at fault... The Cadillac ELR was a 2 door personal luxury coupe econobox with an econobox derived Chevrolet version of its EV. And it also used the Chevrolet Volt's 1st generation tech instead of the 2nd generation tech, in an era when small, 2 door coupes dont sell. In an era when SUVs sell like mad. In an era when Tesla and Fisker were selling sexy body styled sedans and the Tesla was and still is eons ahead in  marketing, styling and dare I say in EV technology in some key tech areas... The Bolt does not fail as an EV product. It fails on its intended mission as an EV product. Not in terms of it not being a capable EV, but it failing of it not being capable of delivering the marketing message that its supposedly sold upon. Packaging. And also, GM does not put full faith in that marketing message either...and so the marketing is also downplayed... The Mustang Mach-E will only eat its lunch if EV buyers buy into a  1. Mustang EV 2. A Ford EV capable of being a good Tesla product equal I think point 1 wont be a problem. But point 2 might very well be. Some EV people have a strong bias against ICE makers and will NEVER take Ford, GM, VW, Nissan, etc, seriously and the Mach-E, as good as it seems on paper, does not have a chance and is DOA...          
    • LOL Listen.  American cars is what I love. From the 1900s to today.  But I'd like to try and learn about  cars from different countries and from their different eras too.   Car craziness and car culture is strong in America, but it aint strictly an American thing. The automobile has defined America and its culture and we revolve our modern lives around it more than any other culture, but there is a car culture elsewhere other than North America. And if it wasnt for 2 devastating world wars in Europe where the automobile was starting to get a grip on life here as well as in Europe, the automobile in Europe would have had the same influence as in America.  But like everything else in nature, the environment influences the surroundings and the same entity evolves differently and at a different pace as the next.  I love to learn about different car cultures around the globe and how the car has influenced that society and how it evolved differently from ours. And from all that,  I learned that car enthusiasts around the world are the same, but have a different take on the performance car than what we have. And from an enthusiast point of view, for which I am, I enjoy enthusiast cars.  And I want to appreciate that.  I have learned that I actually do enjoy European racing cars of the 1920s and 1930s.  Or the rivalry that Ferruccio had with Enzo that produced those slick Italian cars of the 1960s and 1970s from both companies.  I enjoy the French quirkiness and I enjoy an Alpina race to which Renault paid a tribute to just a couple of years ago, kinda like what Ford did with the Ford GT in 2005.  I actually like that Renault/Alpina. Its a cool little sports car.  The Japanese car culture thing is whack. Most of it just seems weird to me. But I definitely like the American influence on their sports cars (which also had a slight Euro touch to them too) which in turn begat a pure Japanese sports car scene.  I get the question marks.  I do not like the shyteboxes that Europe has produced. But then again, I dont like the shyteboxes that Detroit has produced over the years also. But, I do prefer Detroit shyte over Europe's though. And I feel like  what Jay Leno has over other car "influencers" is that he has a certain bias towards cars that I find interesting and I gravitate towards his influence over others.    
    • ?????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????? ??????????????????????????????????????????????????????????????????
    • Papa Smurf Mobile!  
  • Social Stream

  • Today's Birthdays

    1. InvictaMan
      InvictaMan
      (61 years old)
  • Who's Online (See full list)

    There are no registered users currently online

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...