One million Smart Summons to date, with an improved version coming next month based on fleet learning.Early Access release of feature-complete Full-Self Driving by end of this year.Having three Gigafactories will more than triple output over time.More advanced batteries and more efficient powertrains coming in the future.Version 3 of Tesla Solar Roof will be released tomorrow afternoon. Scaling up production at Buffalo Gigafactory, “ready for big time.”
Q3 earnings: return to profitability, automotive gross margin expanded with higher production outputs.Model S and Model X average sale price increased, with Model 3 ASP only declining slightly due to the international market.
Reduced operating expenses.Strong free cash flow, despite increase in leasing.Cash balance increased, with highest ever end-of-quarter cash balance of $5.3 billion.Lease rate increased by 50%.Global order rate increasing, with quarter-to-date orders significantly higher than last quarter.Focus on increasing Model 3 and Model Y production.First phase of Gigafactory Shanghai production-ready.Tesla to continue reducing costs.No long-term contracts on Tesla Solar; however, most people buy rather than rent which Elon referred to as a better investment. Solar adds ~ 4% value to a home according to Zillow.No advertising, no marketing, and no salesforce for Tesla Solar allows the company to offer industry-best pricing.Working on making solar permit approval easier with an innovative new approach involving a generic template rather than a custom template for each case.Streamlined installation to require a single visit to install solar in most cases, with ordering taking a minute online.Word of mouth is more than enough to sustain demand that exceeds production.Some point in the future Tesla may do advertising in a non-traditional sense. Lack of appreciation for the growth of Tesla Energy in the long-term, which should grow to roughly the same size as Tesla’s automotive business in the future.All of the company’s resources had been diverted to Model 3 production, with resources restored to other sectors of the company.Tesla products are producing equal amounts of sustainable energy as the energy used by its cars.
Takeaways from the Q&A:Tesla will continue selling Full Self-Driving as a bundle that includes all current and future features.Robotaxi functionality should be possible by the end of next year, and will no require a driver’s attention.Will lead to the biggest increase in asset value in history.Model Y will be roughly the same in cost as Model 3, with a slightly higher ASP and margin.Tesla is open to helping other automotive brands with batteries, powertrains, and software to accelerate EV adoption.Tesla’s goal is to make vehicles that are fun and entertaining.Tax credits only make up 1.5% of Tesla’s revenue. Business is not dependent on tax credits.People will buy electric cars just because they’re fundamentally better cars, not just because their previous car had worn out. Model S and X are niche products. Tesla is making them for sentimental reasons, with minor importance to the future.Model S won MotorTrend’s “best car in history.”OTA update coming to improve Model 3 power output by 5%, Model S and Model X by 3%.Improved single-pedal driving coming which will improve the range.Faster Supercharging for Standard Range, Standard Range+ customers in the next update.
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