SI
SI
discoversearch

   Technology StocksTesla EVs - TSLA


Previous 10 Next 10 
From: Eric10/2/2017 8:19:31 AM
3 Recommendations   of 2232
 
To Say That The Tesla Model 3 Won’t Have Strong Margins …

20 hours ago by EVANNEX

20 Comments


Tesla Model 3 (Instagram: shmobbert)


THREE REASONS TO EXPECT STRONG MARGINS FOR TESLA MODEL 3

The prevailing “wisdom” among those who continue to short Tesla is that Model 3’s lower price point will surely translate to anemic margins. However, that assumption looks unlikely. According to Trefis Team (via Forbes*), Elon Musk has already, “indicated that the [Model 3] sedan could garner gross margins of as much as 25% at some point next year. This is impressive, considering that margins on Tesla’s luxury Model S and X stand at similar levels, with most mainstream automakers such as GM and Ford commanding margins of under 15%.”

So how exactly is Elon Musk forecasting such thick, healthy margins on Tesla’s lower-priced Model 3? Trefis Team examines three unique factors at play for Tesla: low battery costs, high option uptake, and production efficiencies. Let’s take a look at these three determining factors that could impact gross margin for Tesla’s Model 3.

Low Battery Costs

When Tesla’s Model S launched in 2012, battery costs were around $400 per kWh. Those have descended well below today’s $145 per kWh confirmed by GM (via LG Chem) for its Chevy Bolt. An improved supply chain along with “Tesla’s Gigafactory in Nevada, [is] enabling it to cut logistics costs compared to the cells on the Model X and S, which are imported from Japan.” To that end, “Tesla, along with Panasonic, has designed a new variety of battery cells called the ‘2170’ which will replace the smaller ‘18650’ cells which have been in use for decades. The new cells provide higher energy densities (meaning that they can store more energy for a given size) and will also be manufactured using an automated process that will help to cut costs.”

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman.

Above: A look at Tesla Model 3’s 2170 battery cells in production at the Gigafactory (Youtube: Doug Robinson via Tesla)

High Option Uptake

Will everyone choose a barebones, standard level Model 3? Trefis Team expects many buyers to lean towards the pricier Model 3 with the “75kWh battery on the extended range model [which] would cost about $9,750, translating into incremental costs of about $3250. As the extended range model sells for an additional $9,000, it could command a healthier dollar gross profit of about $5750 (without accounting for any other incremental non-battery costs)… [and] Tesla is also offering several other add-ons such as the premium package (additional $5,000), enhanced autopilot ($5,000) and full self-driving capacity ($3,000) – which are all likely to be high-margin offerings that could boost average selling prices and profits on the Model 3.”

I
t’s likely many will option-up their Model 3 with upgrades like these higher-priced 19? sport wheels (Instagram: teslamotorsports)


Production Efficiencies

Looking ahead, Tesla “has set an aggressive target of producing as many as 10k cars per week next year… [and] there’s no denying that the mass-market nature of the Model 3 should provide the company with significant economies of scale compared to its more niche luxury models. Tesla has also simplified the design of the Model 3 to make production easier, learning from its mistakes with the Model S and X. The company intends to initially offer the car with just 100 permutations, compared to over 1,500 permutations for the Model S in a move that should make production and inventory management easier.”


As production ramps, Model 3 efficiencies will likely be captured (Instagram: andyschuon)


As Tesla begins to ramp production of the Model 3, it’s reasonable to expect healthy margins with these three critical factors at play — even though the Model 3 represents Tesla’s least expensive model to date. Only time will tell. But, assuming Tesla hits its marks, it’s likely that Elon Musk will (once again) prove the superiority of electric vehicle tech versus aging internal combustion engine gas-mobiles.

insideevs.com

===

*Source: Forbes

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers. Our thanks go out to EVANNEX, Check out the site here.

Share RecommendKeepReplyMark as Last Read


From: Eric10/2/2017 8:21:01 AM
   of 2232
 
Tesla Model 3 Production Heating Up As Q3 Ends

20 hours ago by Steven Loveday

18 Comments


Tesla Model 3 Deep Blue Metallic

Tesla was aiming for the production of 1,500 Model 3 vehicles this September, which has now officially come to an end. How did the automaker fare?

For Tesla to have actually delivered 1,500 Model 3s this quarter would be an epic feat. However, to have manufactured them isn’t quite as big of a deal. Especially if the automaker is going to live up to CEO Elon Musk’s estimates of some 5,000 Model 3 sedans per week built in the month of December.


Tesla Model 3 – Interior

Sources familiar with activities surrounding Model 3 production told Electrek that the automaker worked out some early issues and has since upped production speed. This is to be expected since the “production hell” that Musk spoke of, as well as the S-Curve, called for slow, methodical manufacturing at first, as the automaker would still be working through potential issues. This would then be followed by a gradual “speed up” process, which would become exponential in nature as bugs were worked out.

There are still some real questions, however. When did Tesla “up” production? How many Model 3 vehicles were built in September? How many cars were actually delivered?

Normally, we don’t ever get clear-cut answers to such questions. Tesla doesn’t give out such specifics. New reports have shown Model 3s with VINs over 1,000 at this point (which doesn’t exactly inticate production levels). According to Electrek, VINs up to #1134 have been registered with the National Highway Traffic Safety Administration (NHTSA).

However, this month is a ‘once-in-a-model’s-lifetime’ opportunity, as Tesla’s most basic sales information is given just after each quarter’s end. Specifically, the company guides to net total global deliveries and production of each model. And because we know a couple things already:
  • approximately 100 Model 3 deliveries were July and August and,
  • all Model 3 deliveries in Q3 will be in the US,
It becomes a simple math exercise.

insideevs.com

Source: Electrek

Share RecommendKeepReplyMark as Last Read


From: Savant10/2/2017 3:44:21 PM
   of 2232
 

*The slumbering giants are awakening.....

bloomberg.com

Share RecommendKeepReplyMark as Last Read


From: kidl10/2/2017 4:11:05 PM
   of 2232
 
Tesla Q3 2017 Vehicle Deliveries and Production

PALO ALTO, Calif., Oct. 02, 2017 (GLOBE NEWSWIRE) -- In Q3, Tesla delivered 26,150 vehicles, of which 14,065 were Model S, 11,865 were Model X, and 220 were Model 3. This was our all-time best quarter for Model S and X deliveries, representing a 4.5% increase over Q3 2016, our previous best quarter, and a 17.7% increase over Q2 2017.

We had previously indicated that second half Model S and X deliveries would likely exceed first half deliveries of 47,077, but we now expect to exceed that by several thousand vehicles. In total, we expect to deliver about 100,000 Model S and X vehicles in 2017, which would be a 31% increase over 2016.

In addition to Q3 deliveries, about 4,820 Model S and X vehicles were in transit to customers at the end of the quarter. These will be counted as deliveries in Q4 2017.

Q3 production totaled 25,336 vehicles, with 260 of them being Model 3. Model 3 production was less than anticipated due to production bottlenecks. Although the vast majority of manufacturing subsystems at both our California car plant and our Nevada Gigafactory are able to operate at high rate, a handful have taken longer to activate than expected.

It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain. We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.

Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5%. Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.

Share RecommendKeepReplyMark as Last Read


From: Eric10/3/2017 8:03:15 AM
   of 2232
 
Tesla Reports Q3 Sales: Model 3 Sales/Production Miss Mark

insideevs.com

Share RecommendKeepReplyMark as Last Read


From: Eric10/3/2017 8:04:40 AM
   of 2232
 
GM lays out plan for 20 electric vehicles by 2023

Originally published October 2, 2017 at 5:41 pm Updated October 2, 2017 at 8:36 pm

Message 31289272

Share RecommendKeepReplyMark as Last Read


From: Eric10/3/2017 9:14:08 AM
1 Recommendation   of 2232
 
Spy Shots Of Tesla Semi Crop Up Online, Event Invitations Coming Soon

October 3rd, 2017 by Steve Hanley

This story about the Tesla Semi was first published by Gas2.

It’s hard to keep a secret in a world inundated with digital devices. Photos popped up on reddit yesterday of what appears to be the Tesla Semi being delivered to an area in southern California that is frequently used by Tesla as proving ground for upcoming products. Teslarati identifies the location as Inyokern Airport, which is about 150 miles north of the Tesla Design Center in Hawthorne (where the Model 3 was first shown to the public).



The Express in the UK picked up on the photos and pointed out some interesting things it sees in them. First, the Tesla Semi is practically svelte compared to the conventional tractor that towed it. Gone are the huge frontend where the traditional diesel engine resides and the barn door side-view mirrors commonly associated with big rigs.



The Tesla Semi is more of a cab-over design, thanks in part to the fact that it uses electric motors instead of a gigantic diesel. The truck seems to have been designed to maximize aerodynamic efficiency, which will be critical to achieving the relatively long range of up to 300 miles Elon Musk says it will offer.

Advance notification has gone out to Tesla owners who have sent 5 or more customers to the company during its latest referral campaign, telling them to expect an email later this month with details about the official unveiling event scheduled for October 26 at the Design Center in Hawthorne.



Tesla “Save the Date” email for its October 26 Semi-truck event courtesy of Like Tesla

There is so much we don’t know about the Tesla Semi. Will it use battery swapping or does the company have some new high-speed, super-high-power charging scheme in mind? Where will the trucks be manufactured? When will production begin? What companies have expressed an interest in buying them and how many will they buy?

We should know the answers to all those questions by the time October 26 rolls around. Tesla is famous for throwing gala parties when it takes the covers off a new product. No doubt the ceremony to introduce the Tesla Semi to the world will be no different.

cleantechnica.com

Share RecommendKeepReplyMark as Last Read


From: Eric10/3/2017 9:30:26 AM
   of 2232
 
Tesla Model S Maintenance Costs … Tesla Model S Charging Costs … Celebrity Tesla Mods (Top 30 CleanTechnica Stories in October)

Message 31289371

Share RecommendKeepReplyMark as Last Read


From: Eric10/3/2017 12:38:06 PM
   of 2232
 
September Tesla sales in Norway

The numbers for Tesla are astounding. Almost 900 were registered in the last week of September alone

Message 31289743

Share RecommendKeepReplyMark as Last Read


From: Sr K10/3/2017 6:17:03 PM
   of 2232
 
6:03 PM

MarketWatch

Tesla stock gains after Nomura initiates with Street-high $500 price target


More from SeekingAlpha:

Tesla started at Nomura with Street-high $500 price target
Oct. 3, 2017 6:22 PM ET| About: TSLA

Tesla (NASDAQ:TSLA) +0.9% after-hours after Nomura initiates coverage of the stock with a Buy rating and a Street-high $500 price target, vs. a consensus target of slightly more than $300.
  • Analyst Romit Shah forecasts "unprecedented" revenue gains for TSLA - $8B in 2016 to $58B in 2021 - and believes the company has "an insurmountable lead in vehicle range per dollar."
  • TSLA also benefits from a largely inferior competitive field which should drive growth at current levels and help it work through Model 3 production problems, Shah says, adding that he expects upwards of mid-to-high 20% gross margins by 2020.

Share RecommendKeepReplyMark as Last Read
Previous 10 Next 10 

Copyright © 1995-2017 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.