23 Oct 2019 | Tesla Stuns With Trading Update
Tesla Update Shocks With Positive News |Back To Profitability | Huge Efficiencies Found | Tesla Energy Crucial To Future
Show #619
Good morning, good afternoon and good evening wherever you are in the world, welcome to EV News Daily for Wednesday 23rd October 2019. It’s Martyn Lee here and I go through every EV story to save you time.
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"Tesla Q3 2019 Earnings Report Shocks The World With Profits" is how Eric Loveday at InsideEVs described yesterday, and I'd agree!
The headlines from the Tesla's earning call, at least for me as an EV fan but not someone who gets a great deal of joy reading lengthy investor presentations, are twofold. Firstly, Tesla are getting way better at what they currently do. And secondly, as a result of my first point, their future roadmap should terrify anyone trying to compete.
That's not to say others can't complete, I'm not single-minded about Tesla, but as we saw last week with Dyson saying they couldn't make EVs work with £2.5bn of investment, all the other car and energy companies will need to innovate and spend at a rate they simply don't want to do. Without Tesla they would probably be making EVs as curiosities or concept cars.
I've been through what Elon said and as always I'll play you what I think are the highlights for you, a listener to a general podcast about the future of electric cars and energy. This isn't meant to be the deepest dive into the nuances of their finances.
- After hours closed up $51 per share, $306. 20% increase.
- All expections were crushed.
- Tesla has become better at making cars . How much better? $230m better. They took a similar amount in, but they spent less making their cars.
- $1.2billion gross profit.
- Something they get criticised for, which is adjusting the prices more than other car makers but more like a retailer, they credited the ability to price adjust in various markets based on demand, to make the most money.
- $330m in R&D.
- Net income of $143m.
- $6.3bn of revenue which is down 8% compared to last year.
- About 10% of their vehicle were leased this quarter.
- S & X were down by a third, they continue to become luxury items or, as Elon says for the X, a Faberge Egg.
- Capital Expenditure
- Solar was up 48% on the quarter.
- Positive cash flow for over a year, that whole thing about cash burning and running out of money is a FUDster trope.
Before we get to Elon himself, let's go around the grounds for the headlines which got immediately written:
- Tesla’s stock price surges as Musk’s cost cuts and Smart Summon deliver a profit - LA Times
- Elon Musk's Tesla crushes profit targets - Fox Business
- Tesla has made a profit. Repeat, Tesla has made a profit – The Register
- Tesla stuns with surprise profit and faster progress on new model and factory - Independent
- Tesla Shares Soar as Elon Musk Packs Profit Report With Positives - Yahoo
- “If You Didn’t Buy A Tesla, You Just Made A Mistake” - CleanTechnica
- Tesla delivers super charged quarterly results loaded with profit and positivity - The National
- Tesla Packs Profit Report With Positivity as Musk Breaks Mold - Investing.com
- Tesla shares soar 21% as surprise profit answers skeptics - Moneyweb
- 'Jaw dropper': Tesla stock soars after company reveals profit surprise - Sydney Morning Herald
- Elon Musk predicts Tesla energy could be ‘bigger’ than its EV business - TechCrunch
ELON CLIPS
- Let me recap his opening thoughts:
- Record deliveries
- Costs down
- Back to profit
- Operating cost lowest since Model 3 started
- Giga3 produced, body paint and GA
- Stamping machine and paint shop installed whilst the building was going up
- Model Y will be built there
- Giga4 announced in 2020
- Model Y moved forward by 3 months
- Model Y will outsell S/X/3 combined
- Version 10 Smart Summon used 1 million times
- V2 Smart Summon coming in weeks, already improved from the fleet
- FSD Feature Complete this year
- Batteries and powertrain update soon
- Version 3 of integrated Solar Roof tiles
CLIP 2 - Solar & Energy Business
CLIP 3 - How soon they'll make Model Y
CLIP 4 - Volume production in a few months for G3, second building
CLIP 5 - Cybertruck!
CLIP 6 - Why S & X are still great, by the way, everyones cars gets better, one pedal driving, faster charging for Model 3 owners of SR and SR+!
Highlights:
- $143m profit on same revenue
- 96,00 cars delivered, on course for 360,000 this year
- Gigafactory Shanghai making cars already, in 168 working days since it was a field
- The new Gigafactory has a cost per unit of output reduction of 65%
- Almost 15,000 Superchargers
- Tesla Insurance expanding into new markets
- Cash us up 80% since last year to $5.3bn
- Model Y by next Summer
- Semi Truck limited production next year
- Cyber Truck reveal in November
- European Giga 4 making cars in 2021
QUESTION OF THE WEEK
The MYEV.com Question Of The Week…
Set by Chris Meilak: "Would you buy a new EV which only has AC charging (ie Zoe) or CHAdeMO (ie Nissan) today?"
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