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  • William Maley
    William Maley

    Tesla's Q3 Results Are Not Pretty

    Posted Their Largest Loss in A Quarter

    The past couple of months have not been pleasant for Tesla. Production delays of Model 3, the firing of 700 workers, and various parts of the Model 3 being handmade have put a negative light on the electric car company. Yesterday, Tesla announced their Q3 results and the news isn't pretty.

    Tesla reported a $671 million loss for the quarter, making it the largest quarterly loss. The company burned through $1.42 billion in cash in the quarter as it worked on ramping up Model 3 production. Revenue was slightly up to $2.98 billion.

    Tesla also revealed that it is pushing back its ambitious goal of 5,000 Model 3s per week by the end of this year to the end of the first quarter of 2018. On a call with analysts, Tesla CEO Elon Musk said issues at their Nevada Gigafactory was the primary constraint for Model 3 production with a subcontractor that “really dropped the ball.” Software used at the plant had to be rewritten from scratch and mechanical and electrical elements of one part of the plant had to be redone.

    Musk also said the welding for the mostly steel body for the Model 3 has proven to be quite complex.

    “There are thousands of processes to build the Model 3. We can only move as fast as the least competent elements of that mixture.”

    Only three months ago, Tesla was claiming that it would build 10,000 Model 3 cars per week in 2018. When asked if Tesla would hit this target, Musk reportedly was silent for about 10 seconds before giving an answer. When they reach 5,000 Model 3s per week, the company will introduce a “capacity addition” to increase the run rate to 10,000 per week. No mention of how long this addition would take place.

    But there are more issues than Tesla is letting on. Various reports over the past month have said that significant portions of the Model 3 were being made by hand and that body line equipment used on the production line was only getting installed. Tesla has denied these reports.

    Shares in Tesla have dropped 7.1 percent to $298.24 as of 2:26 PM. 

    “We left the call frustrated with the lack of transparency from Tesla management,” said Jeffrey Osborne, a Cowen & Co. analyst in a note to clients.

    “Elon Musk needs to stop overpromising and under delivering and the board should rein in a CEO who publicly shares his aspirational goals that have rarely been hit.”

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


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    21 minutes ago, ocnblu said:

    Gratifying to watch.

    It takes a certain mindset to cheer for the death of an innovating American company, even if one doesn't care for their products personally. 

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    28 minutes ago, ocnblu said:

    Gratifying to watch.

    So then you must be cheering for the death of your brothers company and a loss of all those jobs, destruction of people's careers, income and ability to put food on the table.

    Amazing, so are you saying we should cheer for the death of your place of work too?

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    1 minute ago, ocnblu said:

    Interesting that dfelt and Drew both jump to the word "death" when referring to Tesla when I didn't say a damn word about it.  Why is that?  ;)

    Prior statements of yours

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    1 minute ago, ocnblu said:

    Interesting that dfelt and Drew both jump to the word "death" when referring to Tesla when I didn't say a damn word about it.  Why is that?  ;)

    "Gratifying to watch"  triggered that...

    A  -1  vote anytime somebody mentions EVs...

    Dont play coy...we aint dumb!

     

     

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    Just now, Drew Dowdell said:

    Prior statements of yours

    This is one you and Dave cannot wiggle out of.  Both of you, in your comments, treat Tesla's future as a foregone conclusion.

    2 minutes ago, oldshurst442 said:

    "Gratifying to watch"  triggered that...

    A  -1  vote anytime somebody mentions EVs...

    Dont play coy...we aint dumb!

     

     

    Not even a little bit?  ;)

    Mostly I give a minus one to dfelt when he sticks a totally off topic EV plug into every single thread.  Come on now.

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    5 minutes ago, ocnblu said:

    This is one you and Dave cannot wiggle out of.  Both of you, in your comments, treat Tesla's future as a foregone conclusion.

    Tesla is too unpredictable, but yes, I am concerned for the future of the company. I don't have a personal interest in any of their automotive products (I do like their ideas for home solar and home battery), however even if I never bought a Tesla car, I would not be "gratified" to see them go under.  If you are referring to my comment about shorting the stock, I can easily see the money making opportunity of an overvalued stock and yet still not want the company to go under.  Tesla is not the only company on the stock market looking at precarious conditions these days. We're due for a major correction soon.

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    The richest satisfaction comes from seeing photos of Elon Musk as he devolves into madness.  He is his own worst enemy and he is losing his grip on reality.  That alone makes me grin like Cheshire Cat.

    olds, you are so cute when you're mad.  If I could just get you to economize your writing process.  Stream of consciousness is one thing, but hoowee, you can type like the wind.

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    6 minutes ago, ocnblu said:

     

    Mostly I give a minus one to dfelt when he sticks a totally off topic EV plug into every single thread.  Come on now.

     

    He probably does that because you always diss on EVs.

    He trolls you, you troll him...

    Ironically...you went bat shyte on me for SEMANTICALLY getting your employers domain wrong...

    YOU work at a body shop.

    A universal body shop?

    Repairing all types of makes from Tesla and Hyundai...

    But I SWEAR I SAW YOU write that your employer may own a FCA dealership...not necessarily YOU working at said dealership a few weeks ago...

    Its funny though...you got really really defensive about it...

    Fast forward to tonight and you finding it gratifying for Tesla dying...

    FCA aint all that healthy either...

    You see where Im heading with this?

    It shoudnt be gratifying for you when you get all uptight about why somebody asked why you own a FCA product and shyte on Tesla and I answered him the best I could WITHOUT LIES OR TROLLING BUT USING WHAT YOU YOURSELF POSTED PUBLICLY AND YOU GETTING VERY VERY DEFENSIVE ABOUT IT!!!!

    Know...I will apologize to you and Drew because THIS discussion SHOULD NOT be about you...but about cars...

    But this whole "gratifying" thing seemed to go down a human path rather than an automobile one...

     

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    13 minutes ago, ocnblu said:

    The richest satisfaction comes from seeing photos of Elon Musk as he devolves into madness.  He is his own worst enemy and he is losing his grip on reality.  That alone makes me grin like Cheshire Cat.

    olds, you are so cute when you're mad.  If I could just get you to economize your writing process.  Stream of consciousness is one thing, but hoowee, you can type like the wind.

    I said what I said in the other post...

    I HAD to let off steam...

    So I apologize again...

    And no...I amm NOT  cute when Im angry...

    Im ugly when Im angry.

     

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    2 hours ago, Drew Dowdell said:

    Tesla is too unpredictable, but yes, I am concerned for the future of the company. I don't have a personal interest in any of their automotive products (I do like their ideas for home solar and home battery), however even if I never bought a Tesla car, I would not be "gratified" to see them go under.  If you are referring to my comment about shorting the stock, I can easily see the money making opportunity of an overvalued stock and yet still not want the company to go under.  Tesla is not the only company on the stock market looking at precarious conditions these days. We're due for a major correction soon.

     

    I agree with Drew....don't want to see the loss of jobs either...or the suppliers either. I have my issues with them-but as a car company it would be nice if they made it....

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    At this point.. Tesla is essentially the Tucker of the modern era.. except being bolstered by Paypal billions or something like that. It is a company that should have been usurped by larger organizations, but it is a true depiction of just how SLOW and decadent so many of THEM are to not have already done away with a need for Tesla.. as company that for all intents and purposes serves the same amount of people and market share as a SINGLE.. GM, TOYOTA, or FORD niche division. 

    Currently.. as of Oct.. Chevy rules the EV chart with the Bolt outselling the Model S by almost 3:1, and outselling the Model S and X combined by almost 800 units. Imagine if Chevy were to simply offer the Bolt in two or three more configs.. or I dunno.. gave Buick, Caddy and GMC some of the tech and allowed consumers to have more choices in different demographic sectors. 

     

    tesla.jpg

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    1 hour ago, Cmicasa the Great said:

    It is a company that should have been usurped by larger organizations, but it is a true depiction of just how SLOW and decadent so many of THEM are to not have already done away with a need for Tesla.. as company that for all intents and purposes serves the same amount of people and market share as a SINGLE.. GM, TOYOTA, or FORD niche division. 

    This paragraph is what got the +1 from me.

    What makes this frustrating for me when discussing EVs is that sheeple,yes sheeple, KNOWINGLY they WONT get their Model 3 in this decade STILL line-up for one. 500 000 plus pre-orders...there is a Chevy Bolt for sale and ready for delivery as of NOW!

    And then the OTHER frustrating thing for me is when people argue the fact that not too many consumers want an EV...

    WHAT?!

    500 000 pre-orders and still growing on an EV that is nowhere near to be delivered any time soon.

    500 000 pre-orders. Plus the other 100 000/year that buy the Model S...an EV that is fast becoming DATED! Its on sale now for 5 years...and still the best damned EV from ANY manufacturer.

    GM, Ford, Toyota, Mercedes...ALL OF THEM...dragging their feet.

    MAYBE THE BOLT IS NOT SELLING LIKE A MODEL 3 BECAUSE PEOPLE SEE GM IS DRAGGING THEIR FEET AND THEY ARE SAYING...."PHOQUE GM! ILL WAIT FOR TESLA!"

    Maybe when GM and Mercedes finally gives the people those 20 LEGIT AND PROPER EVs promised by 2020 or something like that, THAT COMPARE TO A MODEL S OR MODEL 3 in terms of range, SPACE and OK looks is when Tesla bites the dust! 

    For now...maybe...alls people are seeing is an oil corrupted auto industry still in denial...

     

    Edited by oldshurst442
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    15 hours ago, ocnblu said:

    This is one you and Dave cannot wiggle out of.  Both of you, in your comments, treat Tesla's future as a foregone conclusion.

    Not even a little bit?  ;)

    Mostly I give a minus one to dfelt when he sticks a totally off topic EV plug into every single thread.  Come on now.

    A little bit ironic you calling out dfelt when you troll EVs every chance you get. 

     

    Honestly, it’s a little pathetic. 

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    4 minutes ago, surreal1272 said:

    Regardless of your EV stance, wishing for the failure of an American company is just flat out ignorant and childish. 

    Yes..the Amish need to just STFU and stay in 1899 w/ their horses and buggies rather than commenting on modern companies. 

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    1 hour ago, Cubical-aka-Moltar said:

     

    Yes..the Amish need to just STFU and stay in 1899 w/ their horses and buggies rather than commenting on modern companies. 

    Those silly Amish. When will they ever learn?

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