Wednesday 4th April 2018.
TESLA QUARTERLEY RESULTS ROUNDUP
- Let’s start with Tesla’s take on their results announced today: “Q1 production totaled 34,494 vehicles, a 40% increase from Q4 and by far the most productive quarter in Tesla history. 24,728 were Model S and Model X, and 9,766 were Model 3. The Model 3 output increased exponentially, representing a fourfold increase over last quarter. This is the fastest growth of any automotive company in the modern era. If this rate of growth continues, it will exceed even that of Ford and the Model T. We were able to double the weekly Model 3 production rate during the quarter by rapidly addressing production and supply chain bottlenecks, including several short factory shutdowns to upgrade equipment. In the past seven days, Tesla produced 2,020 Model 3 vehicles. In the next seven days, we expect to produce 2,000 Model S and X vehicles and 2,000 Model 3 vehicles. It is a testament to the ability of the Tesla production team that Model 3 volume now exceeds Model S and Model X combined. What took our team five years for S/X, took only nine months for Model 3.
- Given the progress made thus far and upcoming actions for further capacity improvement, we expect that the Model 3 production rate will climb rapidly through Q2. Tesla continues to target a production rate of approximately 5,000 units per week in about three months, laying the groundwork for Q3 to have the long-sought ideal combination of high volume, good gross margin and strong positive operating cash flow. As a result, Tesla does not require an equity or debt raise this year, apart from standard credit lines.
- Q1 deliveries totaled 29,980 vehicles, of which 11,730 were Model S, 10,070 were Model X, and 8,180 were Model 3. Net orders for Model S and X were at an all-time Q1 record, and demand remains very strong. Model S and X customer vehicles in transit were high. 4,060 Model S and X vehicles were in transit to customers at the end of Q1, which was 68% higher than at the end of Q4 2017. An additional 2,040 Model 3 vehicles were also in transit to customers. These vehicles will be delivered in early Q2 2018, which keeps us on track for our full-year 2018 Model S and X delivery guidance. Finally, we would like to share two additional points about Model 3:
- 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.
- Net Model 3 reservations remained stable through Q1. The reasons for order cancellation are almost entirely due to delays in production in general and delays in availability of certain planned options, particularly dual motor AWD and the smaller battery pack. As described above, owner happiness with the product is extremely high. We would like to thank our customers, suppliers and investors for their continued patience and belief in Tesla.
And now how did the new sites react and offer their opinion?
- Autoblog: they were mostly factual but did say “Shares of the Palo Alto, California-based company, which have fallen around a fifth in value in the past week, jumped 6.4 percent in premarket trade in New York.”
- Electric Cars Report: “Tesla delivery count should be viewed as slightly conservative, as the company 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%.”
- InsideEVs take was: “Everything appears to be falling into place finally for the Model 3 and perhaps even Tesla’s oftdelayed production ramp. Let’s hope it’s all upwards from here.”
- The Drive said: “Considering the amount of bad press Tesla has gotten over the past few days, this relatively sunny production report is well timed. But Tesla needs to keep its eye on the prize and continue ramping up Model 3 production over the next few months.”
FISKER PLODS ON
- If you’re going to release news on Tesla results day, it better be good, because it’s hard to get a look in today. Henrik Fisker insists that work continues to be done on an entry-level electric vehicle priced at around $40,000. In fact they’re working on several ideas all at once, including the EMotion and the Orbit, using solid state batteries. He told Autocar: “In the future, people are going to choose a mobility device that is the best [suited] for the trip they’re doing that day. It could be an electric bike or your own car, somebody else’s car or a shuttle. “I don’t think the old ideal, where somebody says ‘we’re only going to make sports cars; that’s our brand’ is going to work in the future. People will have four or five mobility devices and, if they like your brand, you should be able to service them in all those areas,” he said.
ELECTRIC VW eCRAFTER VAN
- Vans might not be as sexy as sports cars, but per miles driven, can make a huge difference to air quality. The VW electric van called the eCrafter will make it’s debut on 24th April ahead of testing in May. Fleetpoint say: “The first test vehicles were handed over to a group of major European customers at Volkswagen Commercial Vehicles’ headquarters in Hannover in December. By allowing the vehicle to undergo tests with selected fleet operators, the company will be able to incorporate findings and learnings into the final design and production version of the zero-emission van. The eCrafter’s lithium-ion battery is completely integrated into the underbody, at a CCS charging station supplying the battery can be charged to 80 per cent in just 45 minutes. From a wallbox, charging time to 100 per cent is around 5.5 hours
BUICK HEADS EAST
- Buick has announced more vehicles for China. They will introduce the Velite 6 plug-in hybrid and Velite 6 EV will join the portfolio alongside the Velite 5 and LaCrosse Hybrid. All we know is that in 2017 they said there would be a range extender coming. The extended-range electric vehicle (EREV) consists of GM’s EVT variable transmission, permanent-magnet electric motor drive unit, a direct injection engine and a lithium-ion battery pack. Buick said the electric driving range should be around 62 miles, while the gasoline engine provides up to 435 miles of range.
NEW GEELY PHEV THIS WEEK
- Staying with China and domestic maker Geely, they of Volvo fame, has launched a new PHEV called the Borui GE. It combines a three-cylinder 1.5-liter direct-injected petrol unit with an electric motor and a seven-speed dual-clutch gearbox. And that engine? Yep it comes from Volvo, where it already powers the XC40 T3. It will eventually be adopted by the Swedish company’s upcoming electrified models of the 40 series, and by the certain Lynk vehicles.
- The official debut of the Borui GE is April 9th and on sale this Summer. Carscoops say: “In the cabin, it gets a massive infotainment system, with a 12.2-inch touchscreen display that provides access to various functions. Other features include wireless charging for smartphones, ambient lighting and various LED decorations. Despite the generous screen added in the middle of the dashboard, Geely chose not to offer a digital instrument cluster, probably to keep costs down.
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