Tesla 4-18-2019


Model 3

What current at Tesla?

Rembember  year 11-5-16 when Tesla announce their first profit.

Yes profit ..dollars for the shareholder

Tesla earned 71 cents a share on $2.3 billion in revenue.

Analysts originally expected a loss of 54 cents per share on $1.98 billion in revenues.

That was old news….

So what happing,  this  year?

They did it again.

Tesla finally launches $35,000 Model 3, and moves all sales online

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Tesla $35,000 Model 3 is here.

Tesla Inc. promise to offer a Model 3 for $35,000, but its stock fell late Thursday as Chief Executive Officer Elon Musk said the car maker is likely to report a loss in the first quarter.

Tesla said  Model 3 version will have a shorter driving range and new interior options, and are avilable now. After tax credits and gas savings, Tesla says the car costs about $24,450.

Although,  only after the 6,000 car did Eron Musk  announce, the company, needs to produce 6,000 Model 3s  a week to make it happen…

“I think we just became a real car company,” Musk wrote. The company hit its Model 3 and continued hitting its mark by producing 7,000 Model S and Model X vehicles in a week.

Yes and we made a profit last quarter.”  said Musk.

Tesla booked $271 million in pretax income in the last quarter.

The profits came by the way of government credits, which Tesla earns by producing clean energy products like electric cars.

Tesla booked $189.5 million in credit revenue in the quarter.

According to Musk, “A win is a win”

Its going to be “A Great New Year” predicted  Elon Musk

So how is 2019 doing?

Tesla announces the Model Y.

Tesla has just announced its Model Y, starting at $39,000 and 230 miles of range.

The Model Y will be able to ramp up quicker than the Model 3 and will be built to improve margins and production rates.

The request for the Model Y is even higher than the Model 3, due mostly to the larger SUV market.

The Model Y should become one of Tesla’s best {profitable} vehicle as a result of its high volume and gross margin.

The Model Y is very similar to the Model 3, in that it uses almost 80% of the same components with the Model 3.

The Model Y will also be built on the same platform as the Model 3 which is the best {they say}  of all electric vehicles (EVs).

Model Y will not be built with the falcon wing doors of the Model X.

Tesla announces $2,000 price cuts on all of its models.

The $7,500 federal tax credit for electric cars was cut in half .

Tesla announced it had delivered 90,700 vehicles in the fourth quarter.

Robyn Denholm and not James Murdochthe, will become the new Tesla chairman .

Tesla added Oracle’s Larry Ellison and Walgreens’ Kathleen Wilson-Thompson to its board of directors, as part  of its settlement with the SEC.

Mr Musk agreed to step down as chairman last month to solve the fraud brought by US financial regulators.

The settlement requires Tesla to install an independent chairman, Mr Musk and Tesla were each fined $20m.

Mr Musk was also forced to relinquish his role as chairman for three years.

The big problem began when Mr Musk announce last August, he had funding secured for a deal to take Tesla private.

This caused shares to increased following his comments but weeks later Mr Musk said the deal fell through blaming some of his shareholders.

Investors were also upset about an interview he had in an online video, where he briefly smoked marijuana.

Tesla, the carmaker made what Mr Musk called an “historic” profit in the most recent quarter.

So who on the board?

Brad Buss: Former CFO at SolarCity.

Antonio Gracias: Gracias is an independent director who made early investments in Tesla as well as  SpaceX.

Ira Ehrenpreis: Venture capital  early investor at Tesla while at Technology Partners.

Kimball Musk:  Brother of Elon Musk.

Steve Jurvetson: The investor and technologist is on  leave from the board.

Robyn Denholm: COO of telecommunications firm Telstra. Denholm was named chair in November.

Linda Johnson Rice: Chairman of  Johnson Publishing Company, she been on the board since 2017.

James Murdoch: Thirty year old Son of Rupert Murdoch’s,  CEO of BSkyB and Twenty-First Century Fox.

And now Oracle’s Larry Ellison and Walgreens’ Kathleen Wilson-Thompson.

Maxwell Technologies

Tesla recently acquired Maxwell Technologies, an ultracapacitor and battery component manufacturer.

Tesla’s battery research team recently applied for a battery patent to reduced charging times, increase higher energy density, but  especially  lower cost.

Batteries are the of the most important components of an electric vehicle.

Tesla needs a battery that’s is energy efficient and can be produced at a lowest cost.

Batteries are the important factor in defining operating margins.

Maxwell Technologies manufactures battery components as well as ultracapacitors.

Ultracapacitors are able to store  great amounts of energy without losing much over time due to heat or other conditions.

Ultracapacitors store energy in an electric field as opposed to a chemical reaction.

This allows them to discharge large currents much faster than a battery can.

However, batteries are cheaper than ultracapacitors so a marriage likely could be implemented between the two storage devices.

Ultracapacitors  are capable of  lowering the charge time of electronics and  are used electric bus and car companies in China.

They give quicker acceleration with a quicker release of energy and to charge faster allowing for less downtime.

 Maxwell Technologies also are developing dry battery electrodes.

More Old News

Tesla produced 1,000 Model 3 vehicles in a single day…

But can they continue…. it would mean 7,000 units per week.

In order to sustain those numbers they need to be able to produce 50 units per hour based on a 20 hour working day.

Musk told employees:

“If you are able to help in any way with getting Model 3 production to a steady 1000 per day at excellent quality, everyone at the company should please consider this their top priority. “

“the current cost of Model 3 would be around $38,000, so each part or process step only costs around $3.80. That means finding cost efficiencies is a game of pennies, even though it might not seem so.”

“ Bear in mind that the cost of the car is made up of about 10,000 unique parts and processes.”

Musk thinks that “fewer moves,” can impact everyone.

Tesla needs to produce the $35,000 Model 3’s.

Its current cost is $37,000.

The closer you get $35,000 the more customers are ready to buy…keep in mind that states like California are buying electric car including hybrids at the rate of 15%….out of every 100 new car sold…15 are bought…but 30 are looking.

Tesla Electric Truck

 Click on Tesla Electric Truck for the full story

Tesla Roadster

  • Base Specs
  • Acceleration 0-100 km/h
    2.1 sec
  • Acceleration 1/4 mile
    8.8 sec
  • Top Speed
    Over 400 km/h
  • Wheel Torque
    10,000 Nm
  • Kilometer Range
    1000 kilometers
  • Seating
  • Drive
    All-Wheel Drive
  • Base Price
  • Base Reservation
  • Founders Series Price
  • Founders Series Reservation
    (1,000 reservations available)

For More on the Model 3 updates click on Model 3

Big News is the first delivery on the Model 3

So what Tesla up to today.

Elon Musk tell the story

So what is Tesla trading  March 3, around $290 in midmorning trading.

Back in July 30, 2018 …stock was selling at $290

On April 17, 2019@ $269….What happened?

Tesla was looking to go private?

Not any more ….going private is out….

Musk holds about 20 percent of Tesla, which has a market cap around $59.3 billion.

Oracle’s Larry Ellison is now the second largest shock holder with close to $1,000,000,000 with his latest purchase.

More to come…

Tesla’s new Model 3 is now the best-selling electric car in the U.S.

Tesla did something no other automaker can claim: It’s made an affordable electric car.

Hundreds of thousands of people have put up a deposit.

The only problem is that Tesla can’t make enough of them.

The Model 3 launch in July 2017 at the factory in Fremont, California.

So how many have they made?

Our best estimate is that Tesla best week..they  have manufactured over 236,500 Model 3’s so far, and is now building approximately 6200 per week.

Up the beginning of the year  most were AWD dual motor but today many are single motors.

In the last week of the quarter, they produced over 79,300 Model 3 vehicles, almost all of which were dual motor.

The Performance trim of the new Model 3 will have 20-inch wheels, carbon fiber spoiler, black and white interior and dual-motor available for $48,000 (adding $ 5000 for AutoPilot costs ).

Musk said that its cost is “about” the same as BMW’s M3 (a base model starts at $66,500), but it’s quicker by 15 percent (3.5 seconds 0-60, 155 mile-per-hour top speed, 310 miles of range) and handles well and it will “beat anything in its class”.

If you’re not looking for all of the upgrades, but simply want the second motor and the all-wheel-drive. Musk said “ option costs an extra $5,000, and it just like it used to on the Model S.

So the base price  $35,950  for 264 miles  at 125 mph in 5.6 second from 0-60.

or $42,950 for 310 miles  at 145 mph in 4.6 second from 0-60.

or $53,950 for 310 miles  at 145 mph in 3.3 second from 0-60.

Tesla’s dual-motor setups, allow the car for either to set up one for range or the other for performance, with the car constantly switching smoothly between them.

If you’ve already purchased one of the company’s electric vehicles, then you won’t need to upgrade to enjoy another new feature. Just simply request service from your phone and have Tesla take care of it – no paperwork required.

Deliveries for dual-motor Model 3s are now.

If you want that B/W interior with just a single source of power, it will be available.

Others news….

Tesla also said that it may not need an equity or debt this year.

Now that good news.

But better yet… if they can figure out how to make more cars
they will or should see outstanding growth.

Model 3 owners put down a $1,000 refundable deposit to “reserve” one of Tesla’s Model 3s.

Buyers can cancel their orders within three days for a full refund, the company confirmed, but after that their money is Tesla’s for good.

What does this mean?

The company has  manufactured a base-model version of the Model 3, which it sell for $35,000 but have extended delivery dates.

But coming soon

Instead, it’s produced several versions with premium and other upgrade features, such as longer range battery, with higher top speed and all-wheel drive, and they cost between $43,000 to $58,000 and these are getting ready for delivery.

As we say in the trade, “Sell profit margin.”

Reservation holders who do not want the higher-end versions can hang in there or request a refund.

In a first-quarter shareholders letter Tesla said, “Model 3 net reservations including configured orders that had not yet been delivered continued to exceed 450,000 at the end of q1….and those estimates  are still valid.

Among others, Goldman Sachs is skeptical that Tesla can make good on all of its ambitions near term…. the firm issued a note reiterating a sell rating on Tesla’s stock but that varies daily.

“Investors were anticipating a need for as much as $3 billion in additional capital for the production ramp.”

“The Model 3 is now the best-selling electric car in the U.S. with Elon Musk encouragement.”

It was also reported that Elon Musk was sleeping at the factory. He kept a sleeping bag near the production line so he could immediately address any hiccups.

“Car biz is hell,” Musk said.

Another opportunity… Tesla was struggling to make 500 battery packs/week will be put on the back burner.

In February a new battery production line was built at Tesla’s Grohmann Automation labs in Germany and was installed last month.

Let’s not forget Models S and X: Tesla maintained its commitment of 100,000 deliveries for its two high-end electric cars but then idled Model S and X production lines briefly at the end of the quarter while making changes to the factory lines for the Model 3.

More news….How about a second assemble line under a tent in the parking lot at Tesla..


“The quality of Model 3 coming out of production is at the highest level we have seen across all our products. This is reflected in the overwhelming delight experienced by our customers with their Model 3’s. Our initial customer satisfaction score for Model 3 quality is above 93%, which is the highest score in Tesla’s history….and we are getting better”

“It’s now the best-selling electric car in the U.S. That’s no small feat for a company that’s been in the auto business for 10 years —

Happy Anniversary

What out for the rest of the Car manufactures,….

especially as the global manufacturers are starting to invest billions.”

The final sales numbers for Tesla’s competitors yet, have not come yet, but the next best-selling EV in the U.S., the Chevy Bolt, had 2,601 deliveries in the first two months and its unlikely they will catch Tesla’s 8,180 deliveries for the quarter.

Donald Trump is after China again….

What all the talk about Tesla building a new factory in China…especially when

“No US company are allowed to own more than 50% of their own factory in China.”

Elon Musk’s stated on Twitter that American car companies operating in China, should be allowed to build and operate since

“There are five 100% China-owned EV auto companies in the US.

Tesla’s plans to build the China factory are progressing well, despite the disagreement about the facility’s ownership.

One official from Shanghai emailed to Reuters…”communication between the country’s representatives and the California-based electric car company have always been positive and that both Tesla and China maintain a “shared goal” in the development of the country’s new-energy vehicle market.

However, this is all subject to change… thanks to President’s Trade Embargo……on again….off again.

Tesla CEO Elon Musk, noted in a previous report, recently wrote on Twitter that the discrepancy rules in Chinese auto manufacturers operating in the United States and American car companies operating in China.

China ownership rules —require a foreign automaker to partner with a local firm — or face massive import taxes on American cars

Many believe that the facility, when built in Shanghai, would be use to build the Tesla’s crossover SUV — the Model Y — as well as some of the Model 3.

…And take advantage of the strong workforce and help with in producing more vehicles that are a bottle neck in California.

The other part of having a facility in China would also allow Tesla to dodge the steep 25% import tax that China places on Model S and X.

Without extra taxes, Tesla’s vehicles would challenge the local competitors, which have controlled electric car sales in China.

And what else is new?

The progress of new China Gigafactory 3’s

The progress of new China Gigafactory 3’s in the Shanghai Lingang Industrial Zone represents quite an accomplishment for both the electric car maker and its Chinese partner, considering that Gigafactory 3 is one of the most ambitious foreign-owned projects ever attempted in China.

Based on this recent update, it appears that Tesla intends to start the installation of production equipment in Gigafactory 3 while other areas of the 864,885-square meter site are still under construction.

Tesla want to start Model 3 production in Gigafactory 3 by the end of 2019.

Older news recalled:

After Tesla bought Grorhmann automation

now called

Tesla Grohmann Automation

and Now Tesla bought

Perbix Machine

 Perbix makes machine that makes the machine.

Some of Perbix’s partners include several robotics companies such as Denso Robotics, Kuka, and Rockwell Automation, according to a Perbix’s website. {see above}

After the Model was launched in July and has since been dealing with a production problems.

The problems, Tesla said is the primary production at the battery module assembly line at its Gigafactory in Sparks, Nevada.

Panasonic CEO Kazuhiro Tsuga said that some of the battery packs have had to be assembled by hand, slowing Model 3 output. 

Because of the problems at the Gigafactory where the batteries for the Model 3 are made caused the assembly issue.

The company has to push its production timeline back by three months…for power packs to make room for the Model 3.

 But things happen…

So what happened….How do they meet its goals to product  50,000 cars in the first half of 2018.

Lets back up…

Remember when Tesla reported to have about $4 billion of cash on hand, which was up then from 3.4 billion reported at the end of the fourth quarter.

In addition,  the China’s Tencent Holdings Company  bought 5 percent stake in the Tesla.

Toyota sold most of it stock in Tesla last year when they announce it own plans  for an all electric car by 2020..

They also expected their year-to-date capital expenditures to be slightly more than $2 billion by the time Model 3 production starts in July 1917.

It was  good news when they received $1.2 billion  slightly higher than the $1.15 billion that Tesla had previously expected and that $1.2 billion is the gross amount raised before factoring in underwriting discounts and other costs, although it could climb to $1.4 billion if underwriters exercise all options.

The results sent a positive note as Tesla shareholders .

At the time, current common stock offering, was priced at $293 and Tesla ended up selling 1.33 million shares, compared to the 969,000 it initially planned to sell.

Down from its all-time high of $385 on September 18, 2017 the shares back to $340 at the end June 2018.

Today they are down to 297

With the new accuations…we  should  see better manufacturing efficiency, an increase  in completed units, and more gross profits which is what game is about.

More about Model 3

What does Consumer Report Say?

  Consumer Reports published reliability rating… on the Tesla’s Model 3, giving it an “only average reliability….but now that changed

Tesla was not impressed originally.

Tesla added that the reliability rating lacked “basic scientific integrity,” in part because the reviewers “have not yet driven a Model 3”.

For more details on Model 3

The new auto pilot with 8 cameras, 12 ultrasonic sensors, a radar and GPS with  upgrading the software will allow to drive  from San Diego to New York without touching the wheel or at that what ultimate goals is.

The mega factory in Nevada, will have the most advanced batteries  with the combination of the best technology at the lowest cost all made under one roof just as soon as they can get there current problems fixed.

There could a many a 20 giga factories in the future.

New products on the drawing board are the new SUV which will be design from the ground up and a new semi-truck  that will be solar and battery driven

More to come….

Mr Musk agreed to step down as chairman last month to solve the fraud brought by US financial regulators.

The settlement requires Tesla to install an independent chairman, Mr Musk and Tesla were each fined $20m.

Mr Musk was also forced to relinquish his role as chairman for three years.

The big problem began when Mr Musk announce last August, he had funding secured for a deal to take Tesla private.

This caused shares to increased following his comments but weeks later Mr Musk said the deal fell through blaming some of his shareholders.

Investors were also upset about an interview he had in an online video, where he briefly smoked marijuana.

Tesla, the carmaker made what Mr Musk called an “historic” profit in the most recent quarter.

More Tesla rangers, a specialize service truck with technicians  will be added with the increase numbers of owners coming aboard.

You can order the car from any state and can be service in every state contrary to the current here say.

A new Giga factory is schedule for the Model Y and the rest of the parts including the battery, motor and drive train will be built at the Giga factory in Nevada.

Fremont factory is full and a bee hive in action…don’t try to find a place to park…..a new line under a tent in the parking lot…..and less salaried employees.

How about reducing salary employee by 9 per cent and that will help with parking..and the bottom line.

Tesla began 2017 with over 5,000 Superchargers globally.

Tesla plans double that to 10,000 Superchargers and 15,000 Destination Charging connectors worldwide.

North America, we’ll see increase over 150 percent, and in California alone we’ll add more than 1,000 Superchargers.

Mobile repair trucks are expected to be added in the second quarter so that the majority of repairs can be made without raising the car on a lift.

The Model Y is coming in 2019—on a new platform…. a compact SUV will be built on an entirely new platform from the Model 3.

While Musk said the Model 3 is “perhaps 3 to 4 times more automated than a Model S or a Model X,” he added that “the Model Y will be—there will be nothing close to it.”

Tesla’s pickup truck may be coming sooner than you think.

Tesla recently announced all-electric long-haul semi truck.

There may be no Tesla bus any time soon but the new semi-truck is on schedule.

Tesla Electric Truck

Mr. Musk said he now prefers the long-term idea of building massive networks of tunnels.

Yes as was mentioned earlier it will be doubling the number of high-speed Superchargers this year, but the charging network is nowhere near its peak, Musk said. It’s “going to continue to increase dramatically” after 2017.

Model S P100D with Ludicrous mode (P100DL), which is the world’s quickest production car with a 0-60 mph time of 2.5 seconds paced company sales growth, and now its one of the top 12 selling large luxury sedans in the U.S.

Tesla also said it was on track to meet their goal of improving automotive gross margins.

But the game keep changing.

To the shareholder  higher interest rates and lower conversion premium added more risk related to the recent acquisition of SolarCity.

Did you mention Solar or battery?

But are we talking only solar roof  and battery products …how about the roof itself.

Try installing a solar  panel on a California tile style roof.

Alas…you guess it…a solar  panel that looks like any typical California tile style roof.

As of today many thing have happened.

And the world changes as does politices.