Tesla

Quarterly report and future Tesla plans

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Yesterday Tesla presented its financial earning for the first quarter of 2017. While the reactions are mixed, other information, plus what we have already been told during a conference call with investors, paint a positive picture for the company’s development.

Tesla delivered 25051 cars in three months, a record so far, which was part of its record income of 2,7 billion dollars, 200 millions higher than analysts expected. Losses were also bigger than planned, but the company said that even though that happened, they increased their capital reserves and currently have 4 billion dollars on their accounts. It is worth noting the profit margin on sold cars increased from 24% to 27,4% and, according to Elon, is supposed to increase thanks to production improvements.

Elon Musk’s company remains at a stage of huge development and investment – in just three months this year Tesla spent a billion dollars on investments in widely understood “tangible assets” like factories or machinery. Additionally, in the upcoming months we can expect, among others, expanding the amount of products in Tesla stores with energy systems (Powerwall 2, photovoltaic panels and solar roof-tiling), a hundred new locations around the world (shops, maintenance facilities, delivery points) or a few hundred new SuperChargers, or the so-called “Destination Chargers”.

According to reassurances, everything is going according to plan – both construction and production in GigaFactory #1 and #2, as is preparing for the start of Model 3 production in July. It should enter production at around 5000 units weekly this year and sometime in 2018 – 10000 units weekly.

We learnt a lot of interesting things on a conference call with Elon Musk.

Announced as an element of the second part of Tesla’s Master Plan, the minibus may never see the light of day – according to the CEO, cheap autonomous driving will partially render obsolete mass transit. He expects a “really big” jump forward with regards to delivering energy storage systems at the end of 2017. Asked about Model 3 preorders, he said “netto preorders” (after accounting for cancelled ones, as with the changes for Model S/X) are growing weekly.

We now know that one of two to four GigaFactories will be placed in China and it is expected an announcement will be made with that regard before the year ends.

Model Y, which is expected to be a smaller version of Model X, will appear on the market by the end of 2019 or at the start of 2020. What is interesting, it seems that this is the first model to be built according to Elon’s idea of “machines building machines”. It is supposed to have a completely new underside base, which will allow it to move away from powering the car’s systems with a 12V battery, as well as shortening the amount of cables in the car tenfold, which is supposed to ease production. As, according to Musk, Model 3 is supposed to be built “as fast as in the best factories of this market”, Model Y is supposed to introduce this process to a “whole new level”.

The biggest surprise from last weeks is the Tesla Semi, a long-range truck which is supposed to be a more attractive solution for transport companies than cars with combustion engines. What is interesting, CEOs have announced that this model takes a lot from Model 3, which will allow fast and cheap production. It is supposed to transfer to lower prices and higher margins. It was also suggested that, among others, the engines for Model 3 are in the Semi, with one powering each wheel. Musk also added that “every segment of the market, apart from the rockets, with no exceptions, will be dominated by electric engines”.

Any week now we can expect the start of sales for solar rooftiles and we could maybe receive new information regarding future plans of the company.

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