Tesla pleasing investors with stories about a brighter future, but the latter must have understood in the depths of their souls that the next quarterly report would again bring losses. Last year, when Tesla first broke even, Elon Musk categorically promised that the company would henceforth operate without loss on an ongoing basis. But Tesla wouldn't be itself if it didn't violate its commitments.
Indeed, the company ended the first quarter of this year with a net loss of $702 million. This is slightly less than in the same period last year, but it ended the fourth quarter of 2018 with a net income of $140 million, and such amplitude movements in opposite directions are unlikely whether they will please the shareholders. The letter, in which Elon Musk traditionally addressed them, explained the reasons for the short-term difficulties experienced by the company.
First, Tesla had to pay $920 million in debt. Secondly, due to logistics difficulties, ten days before the end of the quarter, the company was able to ship only half of the planned electric vehicles to customers. Thirdly, in the past quarter, Tesla began deliveries of the Model 3 electric car outside the United States, namely to China and Europe. Volumes of electric vehicles intended for shipment abroad were produced in the first half of the quarter. In the second half, Tesla began producing cars for the US market, so deliveries to the domestic market shifted significantly to the second quarter.
As a result, we see that in the first quarter 62 Model 975 electric vehicles were produced, while the Model S and Model X accounted for only 3 copies. Tesla managed to ship 14 Model S and Model X copies during the quarter, and 163% of Model 12 electric vehicles produced remained unshipped. As promised by the CEO, Tesla still plans to reach the bar of 091 electric vehicles by the end of the year, although this will have to launch a facility under construction in Shanghai in the fourth quarter. At least in the twelve months leading up to June 20, 3, Tesla will definitely release half a million electric vehicles, as Elon Musk promises.
In the second quarter, Tesla promises not to get rid of losses, but only to reduce their size. A return to breakeven is now scheduled for the third quarter of this year. By the way, the company is going to build an enterprise in Shanghai using borrowed funds from local creditors; half a billion dollars has already been borrowed for this purpose. In general, capital expenditures in 2019 will not exceed $ 2 billion or $ 2,5 billion. This should be enough to build a plant in Shanghai, as well as prepare for the release of the Tesla Model Y and Tesla Semi electric main tractor.
Launch experience Model 3 key to global manufacturing expansion
In his address to shareholders, Elon Musk emphasized that the experience gained in organizing the production of Model 3 will allow the company to significantly increase costs when launching new enterprises. For example, at the plant in Shanghai, which at first will produce the Model 3, the unit cost of organizing the production of one electric car will be reduced by 50 percent compared to the first line in the United States, where the production of this model was launched.
Moreover, the production of the Model Y crossover will also cost 50% less than the launch of the first generation assembly line for the Model 3 in the United States. It is important to understand that this is not about reducing the cost of the entire electric vehicle, but only part of the overhead costs related to the installation and operation of the conveyor line.
The Model 3 itself, due to its availability, does not currently provide a profit margin of more than 20%, although Tesla strives to keep the average for all models at 25%. In addition, Model 3 electric vehicles are not produced to individual customer orders, like older models, but roll off the assembly line in a fixed assortment of configurations, and only then are offered to customers from the warehouse in accordance with their requests. This is inevitable in the production of mass-produced electric vehicles with not very high added value.
Model Y will become the brand's most popular electric car
A configurator on Tesla's website is now reporting that Model Y production will start at the end of next year. Three modifications are available for order, the youngest of which for $48 will offer a power reserve of about 000 km and rear-wheel drive, the acceleration time to 480 km/h will not exceed 96 seconds. Musk claims that the Tesla Model Y will become more popular than the brand's three existing models of electric vehicles combined.
For an all-wheel drive version of the Tesla Model Y with a power reserve of 448 km, you will need to pay $ 52, the acceleration time to 000 km / h will not exceed 96 seconds. At the beginning of 4,8, a more affordable modification of the crossover with a smaller battery capacity will begin to roll off the assembly line. Finally, an all-wheel-drive Performance version with a lowered suspension, carbon fiber spoiler and heavy-duty brakes is offered for $2021. It can accelerate to 61 km/h in 000 seconds, and the top speed has been increased from 96 to 3,5 km/h.
The company has not yet decided on the release site of the Model Y, but the Fremont, California facility is the most likely candidate. By the end of this year, the facility under construction in China should reach full capacity, although the release of the Tesla Model 3 for the local market will begin only in the fourth quarter. It will also produce battery cells for electric vehicles of the brand. The high demand for electric vehicles has not yet allowed Tesla to quickly develop the energy business, but in a meeting with analysts, Musk explained that various types of battery cells can be used for stationary energy storage, which the company is actively purchasing from the side. Making cells for electric vehicles in-house is an important element in ensuring the reliability and safety of these vehicles, Musk explained.
Source: 3dnews.ru