• Follow us

Automotive

Tesla Delivers More Cars—and More Losses

On one hand, Tesla is making and selling cars. Wednesday, the company said it had delivered 95,356 vehicles in the second quarter of 2019, beating its own record of 90,966, from the end of 2018. That’s a year-over-year increase of 134 percent. The figure also beat Wall Street’s prognostications and seemed to signal that the electric-car maker was ready to climb out of an early 2019 slump and get back to saving the world via four wheels.

On the other hand, Tesla isn’t back to making a profit yet. The company also reported it lost $408 million in the second quarter. That’s an improvement over the prior quarter, when it reported a $702 million loss; but the loss was still larger than Wall Street analysts’ expectations, which were already pretty grim. The company’s stock price fell more than 10 percent in aftermarket trading. Tesla also said longtime CTO and cofounder JB Straubel would step down to become a senior adviser to the company. Company vice president of technology Drew Baglino will take over some of Straubel’s responsibilities.

As Tesla becomes, increasingly, a manufacturer of “affordable” electric vehicles instead of luxury ones—just 18.6 percent of its deliveries last quarter were its higher-margin luxury Model X and Model S—the company still appears to be looking for a path to long-term profitability.

For that, Tesla is publicly casting its eyes to its next big thing: production of the Model Y compact SUV, which is slated to begin in fall 2020. “The story for Tesla’s future is fundamentally Model 3 and Model Y,” CEO Elon Musk told investors on a call Wednesday evening. He projected that “in a couple years” customers would demand about 750,000 Model 3’s and 1.25 million Model Y’s per year, compared with 80,000 to 100,000 S’s and X’s. With Tesla’s planned pick-up truck and semitruck, the share of Model S’s and X’s “gets smaller and smaller,” he said. (Neither Tesla’s shareholder letter nor the investor call offered an update on the timelines for the Tesla pick-up or semi, though Musk indicated in June that a pick-up truck might be unveiled “some time towards the end of summer.”)

The letter said the company expects the Model Y to be a more profitable product than the Model 3.

Even so, Musk and company said they weren’t quite sure why Model S and X deliveries have fallen 21 percent since last year. He chalked some missed sales up to a “communication” issue and said he believed some customers were waiting for new versions of the S and X before purchasing a vehicle. He emphasized that no big refresh was coming.

Tesla also appears to be pinning serious hopes on its factory in Shanghai, where it says machinery is being put into place for a Model 3 production line. The company says it’s on track to begin production there by the end of the year. China’s aggressive electric-vehicle sales goals makes it an ideal market for the EV company, but the country also places heavy import taxes on automobiles built elsewhere. Tesla hopes its new factory will boost demand for its cars in the country. Musk also said Tesla would finalize a location for a European Gigafactory by the end of the year.

As for Tesla’s futuristic car tech: well, it still seems to be in production. The investor letter indicated that the company’s “Enhanced Summon” feature, which Musk has long promised would allow a driver to summon a car from a parking lot, is still in development. “We are making progress towards stopping at stop signs and traffic lights,” the letter read—which seems pretty vital. Musk predicted earlier this year that Tesla would have 1 million robotaxis on the road in 2020, though technology experts have cast doubt on that claim.

Tesla said it is still on track to produce 360,000 to 400,000 vehicles this year, which would require more than doubling its output from the first half. Musk urged investors to focus on the positive. The company’s output has increased dramatically in recent years, he pointed out. “We didn’t evolve to feel an exponential” rate of increase, he said. “We can feel a linear, but we can only understand an exponential at a cognitive level. But Tesla is expanding at an exponential rate.”

More Great WIRED StoriesThe hard-luck Texas town that bet on bitcoin—and lostThe inside story of Twitter's new redesignHow Waze data can help predict car crashesThe simple way Apple and Google let abusers stalk victimsDisney's new Lion King is the VR-fueled future of cinema📱 Torn between the latest phones? Never fear—check out our iPhone buying guide and favorite Android phones📩 Hungry for even more deep dives on your next favorite topic? Sign up for the Backchannel newsletterRead More



Leave A Comment

More News

Motor Trend

Audi Teases Six Upcoming RS Models, But Which 2019-08-05 12:56:21Audi Sport has released a shadowy teaser of six upcoming RS performance models, which could possibly debut at the 2019 Frankfurt auto show. Based

2019 Toyota RAV4 Earns Top Safety Pick+ Award 2019-08-05 11:58:36While the Toyota RAV4 didn’t perform as well as the Honda CR-V in our recent compact SUV comparison, it has now earned an award that sets it apa

2019 Cadillac CT6-V Review: The 550-HP Blackwing V-8 2019-08-05 09:00:33Remember the Cadillac CTS-V? The supercharged, Corvette Z06–engined burnout monster that Cadillac set loose on the world a few years back? The 2

2020 Nissan Versa Review: More Attractive and … 2019-08-05 07:00:34Many Nissan Versa owners don’t care about cars. They look at its affordable starting price, sit in its spacious interior, and ask where to sign

2020 Ford Mustang Shelby GT500: 8 More GT500 2019-08-05 06:00:33Ford likes to tease information about the hot new 2020 Shelby GT500 one tiny piece at a time. And before we get ourselves behind the wheel, here are e

Honda Civic vs. Toyota Corolla vs. Mazda3: What’s 2019-08-05 04:00:29When I was 18, the keys to my freedom belonged to a Saturn Ion. Hey, stop laughing. I no longer had to depend on my dad’s CR-V or my mom’s

A $40,000, 301-HP Mini? What the JCW Clubman 2019-08-03 04:00:55The Mini John Cooper Works Clubman gets a new 301-hp engine for 2020—and a boost in price, too. After driving the updated JCW Clubman on the out

IndyCar Will Adopt Hybrid Powertrains by 2022 2019-08-02 17:31:15The NTT IndyCar Series is the latest top-flight racing organization to embrace hybrid powertrain technology. The electric power boost is set to debut

The C8 Corvette Gets Bose’s Most Powerful Coupe 2019-08-02 17:14:31The C8 Corvette’s LT2 V-8 is sure to make some delightful music on its own, but Chevrolet has once again partnered with Bose to make the ‘

Refreshing or Revolting: 2020 Chevrolet Corvette vs. Porsche 2019-08-02 15:27:47We’ve examined the 2020 Chevrolet Corvette’s design compared to its C7 predecessor, and to its exotic mid-engine rivals. Now, we’re

WIRED

Self-Driving Trucks Are Ready to Do Business in 2019-08-06 07:00:00Kodiak Robotics will begin commercial service between Dallas and Houston, though a host of other self-driving startups have already been testing in th

Now on the Used Car Lot: Great Electric 2019-08-05 07:00:00Used car shopping site Shift says EVs accounted for 4 percent of sales in the first half of 2019, triple their share of a year ago.

Hand-Crafted Bentleys, a Climate Bill, and More Car 2019-08-04 09:00:00A $287 billion transportation bill approved by a Senate committee includes $10 billion for preventing and mitigating the effects of climate change.

This Startup Wants to Tame the Chaos of 2019-08-03 07:00:00Everyone vies for curb space: taxis, Ubers, delivery trucks, buses, bicycles, and residents. In Washington, DC, CurbFlow is testing spots reserved via

The Senate's Transportation Plan Reckons With Climate Change 2019-08-01 07:00:00America's Transportation Infrastructure Act, approved by a Senate committee this week, includes $10 billion to prevent and mitigate the effects of cl

Self-Parking Garages, Robovans, and More Car News This 2019-07-28 09:00:00Bosch and Daimler introduce a garage where cars park themselves, carmakers sign on to tough mileage standards, and a Ford F-150 tows a train.

Tour the Factory Where Bentley Handcrafts Its Luxury 2019-07-27 07:00:00While a major auto plant can stamp out thousands of cars a day, Bentley makes just a few dozen, with a heavy dose of TLC.

This Robo-Van Startup Will Handle Walmart's 'Middle Mile' 2019-07-26 07:00:00Gatik isn’t a long-haul trucker and doesn’t want to transport people. It’s hoping to carve a niche moving goods from warehouses to s

California's Auto-Emissions Deal Could Trump the Feds' Plans 2019-07-25 20:30:05Ford, Honda, Volkswagen, and BMW agree to tougher California mileage standards, potentially disrupting Trump’s proposal to relax US rules.

UPS Wants to Unleash Drones, a Galaxy Fold 2019-07-25 19:26:51Catch up on the most important news from today in two minutes or less.

UPS Wants to Go Full-Scale With Its Drone 2019-07-25 08:00:00The delivery giant is done experimenting and is petitioning the FAA for the right to launch revenue-generating drone flights without today’s res

Tesla Delivers More Cars—and More Losses 2019-07-24 20:56:23The electric vehicle maker said it set a record for deliveries, which more than doubled from a year earlier. But few were luxury models, leading to a

Automotive news - from

Toyota hydrogen bus upgraded with safety features 2019-08-06 08:23:00Toyota's hydrogen fuel cell electric bus, Sora, has been upgraded with a series of safety features designed to help prevent accidents.

Adient records Q3 net loss of US$321m 2019-08-06 08:10:00Adient has posted a third-quarter net loss of US$321m, impacted by various one-time, non-cash charges totalling US334m.

Magna wins Ohio seating business 2019-08-06 06:34:00Magna has won seating business in North America with an unnamed global automaker and will supply structures from a new manufacturing facilit

Nuance auto spin-off to be called Cerence 2019-08-06 06:23:00Nuance Communications says the name for its forthcoming automotive spin-off will be Cerence.

Intel and Baidu ink collaboration MoU 2019-08-06 05:44:00Intel and Baidu have signed a new MoU aimed at increasing collaboration between the two companies in Baidu's core business areas during the next thre

Teralytics raises US$17.5m for mobility solutions 2019-08-06 05:30:00Teralytics has raised US$17.5m in a round led by Robert Bosch Venture Capital (RBVC), alongside Deutsche Bahn Digital Ventures, innogy Ventu

Daimler ride sharing in Romania gets capital boost 2019-08-06 05:09:00Clever Tech, the company that owns the clevertaxi.ro ride sharing application and was fully taken over by Daimler group in April 2017, has received a

Taiwan sales up sharply in July 2019-08-06 05:03:00New vehicle sales in Taiwan jumped by 12.5% to 48,429 units in July from 43,056 units in the same month of last year, according to local reports citin

SAIC completes extreme weather test centre in China 2019-08-06 05:00:00SAIC Group and China Tiesiju Civil Engineering Group (CTCE) this week completed construction of a high temperature vehicle test centre and track in th

South Korea investigates Japanese suppliers for price fixing 2019-08-06 04:57:00South Korean authorities have launched an investigation into two Japanese automotive component manufacturers on suspicion of price fixing, according t

Tata Power and Motors team on India charging 2019-08-06 04:54:00Tata Power and Tata Motors are partnering to install 300 fast charging stations by the end of 2020 in Mumbai, Delhi, Pune, Bangalore and Hyderabad.

GM opens new aftermarket parts centre in Flint 2019-08-05 11:39:00General Motors has opened a new ACDelco and GM Genuine Parts processing centre in the Flint, Michigan, suburb of Burton.

Automotive News Breaking

Automobili Pininfarina CEO outlines lineup expansion plan 2019-08-06 06:22:17The order that the new cars will appear will be dictated by potential customers who will be shown body style examples based on past concepts. The

Bosch sees stagnating sales, job losses as auto 2019-08-06 06:14:20Bosch CEO Volkmar Denner foresees stagnation in vehicle production in the coming years. "The tailwind is gone," he said, adding that this will affec

Maserati won't see profits until after product offensive 2019-08-06 06:09:19FCA CEO Mike Manley called Maserati's sales volume "disappointing" and said the third and fourth quarters also will be difficult for the brand befo

California plan embraced by four automakers had been 2019-08-05 18:52:40The previously unreported detail sheds new light on the months-long battle between Washington and Sacramento over the mileage rules that automakers ur

Honda denies report it's looking to move to 2019-08-05 16:27:27The Dallas Morning News said the automaker has been scouting potential locations for a major office or relocation of its North American head

GM opens $65 million parts processing plant 2019-08-05 16:01:43The Michigan facility marks GM's largest investment in a U.S. warehouse and logistics operation in nearly 40 years.

Employee charged with murder after shooting at Ala. 2019-08-05 13:56:14The shooting occurred near the assembly line and police are still investigating a motive.

How Tavares turned around PSA and GM's former 2019-08-05 12:24:49As automakers grapple with rising costs and falling margins, PSA CEO Carlos Tavares keeps announcing record-breaking results.

Ex-UAW VP Norwood Jewell sentenced to 15 months 2019-08-05 10:53:31Norwood Jewell is the highest-ranking UAW official to be charged in the case involving misuse of funds meant to train Fiat Chrysler Automobiles union

New mobility center slated for downtown Detroit 2019-08-05 10:23:34The center will be housed in Wayne State University's 45,000-square-foot Industry Innovation Center, which the university bought last year.


Disclaimer and Notice:WorldProNews.com is not responsible of these news or any information published on this website.