Not without a profitable company, anyway. And Tesla, despite its promise to end the year in a cash-positive state, is not that company. Not yet.

After rolling out a dual-motor Model 3 and its Performance sibling in July, the average retail price of Tesla’s “most affordable” electric car is only going up, frustrating would-be owners waiting for the $35,000 base model. That stripped-down trim won’t appear until the beginning of next year.

When it does, however, Tesla stands to lose nearly $6,000 per vehicle, one investment bank claims. (Read More…)

Tesla announced Wednesday that it lost $743 million in the second quarter of 2018, instantly pushing the automaker’s stock up by nearly double digit figures. No, this particular tidbit isn’t what investors hoped to hear, but CEO Elon Musk, who, unlike in past weeks, made it through the day without saying something overtly controversial, told them enough of what they wanted to hear.

The company’s revenue is up by over a billion dollars compared to the same quarter a year ago — $4 billion as a pre-tax total. Cash on hand was the lowest Tesla’s seen in two years ($2.2 billion), but the automaker’s reduced cash burn impressed some skeptics and reassured believers in Musk’s pledge to return to a positive cash flow in the third and fourth quarters. Having achieved its 5,000-Model-3s-per-week production goal, Tesla claims volume will crank up to 6,000 per week by late August. 10,000 per week comes in 2019.

There was even an apology from Musk for his bizarre behavior during a May earnings call, in which he snubbed analysts while acting like a bored teenager.

And did you know the Model 3 outsells all premium midsize sedans combined? Yeah, about that… (Read More…)

Tesla Motors announced Thursday that it officially reached 200,000 deliveries this month, which is good news in terms of overall sales. But the figure also means the company has surpassed the threshold requiring that federal tax credits be phased out, which is bad news.

Some speculate that, without government incentives, fewer people will be willing to buy Tesla-branded vehicles. While that’s a possibility, the brand offers unique, trendy models not readily available elsewhere. We’d presume a discount on an iPhone would probably help sales as well, but affordability it isn’t the main reason people purchase them.

We’ll see what kind of impact it has on the automaker as the $7,500 federal electric vehicle tax credit for new owners is gradually phased out. It will also be telling for the electric vehicle market as a whole, as Tesla is the first EV producer to reach the limit.  (Read More…)

A report in Reuters Tuesday sheds light on the frenzied final weeks of Tesla’s all-out push to reach a production target of 5,000 Model 3s per week by the end of June.

Workers claim CEO Elon Musk became agitated whenever the company’s Fremont, California production lines slowed or stopped due to robot issues, employees were pulled off the Model S line to cover Model 3 workers’ breaks, and longer hours with little advance notice became the norm.

Ultimately, Tesla was able to boast of building 5,031 Model 3s in the last seven days of June. But another report raises the question of whether Tesla skipped an important step in the production process in order to reach its goal. (Read More…)

The numbers are out for Tesla’s second-quarter production and deliveries. If you didn’t spend the weekend lying on a block of ice with a fan taped to your chest, you probably heard the faint sound of Tesla aficionados celebrating the automaker’s 5,000-Model 3s-per-week production goal, which was met with few vehicles to spare.

CEO Elon Musk took to Twitter on Sunday to announce the production of 7,000 vehicles during the last seven days of June, some 5,000 of them being Model 3 sedans. Steven Armstrong, CEO of Ford of Europe, shot back a reply stating his company builds that much in about four hours. (There seems to be a lot of bad blood between Ford and Tesla.)

So, how do the numbers break down for the entire second quarter? Read on. (Read More…)

That’s the question being asked by a bevy of cynical journalists and industry observers after Tesla CEO Elon Musk regailed his Twitter audience with descriptions of the automaker’s upcoming pickup truck last night. How does a heavy-duty 240-volt power outlet sound? Self-levelling suspension? Hmm?

At the same time, Tesla’s Design Studio announced revised pricing for the dual-motor Model 3 and its Performance variant. Remaining Model 3 reservation holders were also told they would soon get the opportunity to configure their long-awaited vehicles.

Either the big tent’s working out just great and production is well on track, or there’s something investor-rattling coming down the pipe. (Read More…)

Elon Musk’s role as chairman and CEO of Tesla remained intact after Tuesday night’s annual shareholder meeting, where a proposal to split the duties between two people sank once it came to a vote. Three directors, including Musk’s brother Kimbal, also saw re-election last night, despite protests from some shareholders who feel they lacked experience.

With the challenge to Musk’s dominance squashed, it was then time to do the thing he does best: placate investors with assurances and rosy production timelines. Anyone interested in a Model Y? (Read More…)

Tesla CEO Elon Musk is a man with a knack for envisioning new and elaborate ways of accomplishing simple tasks, but his factory in Fremont, California — home to three revolutionary electric car models — could use a dose of the Old World. By that, we mean lessons learned by legacy automakers over many decades of mass production.

That’s the takeaway from a scathing exposé published in The Daily Beast, penned by former TTAC managing editor Edward Niedermeyer. Coming on the heels of a CNBC report on fires at the automaker’s paint shop, The Daily Beast‘s piece brings together testimony from current and former employees to paint a picture of what can happen when Silicon Valley startup culture meets the realities of mass auto production.

Bring your safety goggles. (Read More…)

The Consumer Reports review that criticized the Tesla Model 3’s stopping distance and all-consuming touchscreen seems to have sparked CEO Elon Musk’s recent spat with the media, but a change of heart at CR might cause Musk to think twice about his proposed rating site for journalists.

After the automaker improved the model’s 60-0 mph stopping distance by nearly 20 feet (a feat accomplished via an over-the-air software update), the publication bestowed the car with a “recommended” rating, despite lingering concerns over certain features. Maybe the torches-and-pitchforks crowd can clear off CR‘s lawn now. (Read More…)

So far, 2018 hasn’t turned out to be a great year for Tesla Motors. The company has been plighted with production issues, some quality control problems, bad press over the questionable safety of its Autopilot system, and concerns over the financial stability of the company. While all of these matters remain fixable, the compounding pressure seems to have left Tesla CEO Elon Musk a bit unhinged — which has caused some complications of its own and been exacerbated by negative media attention.

The automaker needs a win, even a small one, so it can help rebuild its reputation and alleviate some of that pressure. Fortunately, it seems to have found its opportunity.

Last week, Consumer Reports gave the Tesla Model 3 a very mixed review. While it claimed to enjoy the vehicle’s handling and superior electric range, the outlet said its in-car controls were distracting and noted its average stopping distance of 152 feet was “far worse than any contemporary car we’ve tested and about 7 feet longer than the stopping distance of a Ford F-150 full-sized pickup.”

As a result, it could not recommend the the Model 3 to consumers. Musk immediately flew to Twitter to respond, saying the matter would be fixed without customers needing to have the vehicle serviced.  (Read More…)

You know what we’re talking about, right? The Tesla with the affordable price that everyone couldn’t stop talking about during the 2016 unveiling? That one. Not the Model 3 Long Range model, currently the only version in production ($44,000 to start), and not the $78,000 dual-motor performance model announced this past weekend.

We’re talking about the $35,000, 220-mile entry level Model 3. Lost in the hubbub over the performance variant and the apparently controversial Consumer Reports review is the latest approximation of when reservation holders stand to see a stripped-down version of the slow-to-ramp electric sedan. (Read More…)

If you weren’t on Twitter yesterday, well, you picked a good day to stay away. However, if public battles between an automaker and the media is your thing, coupled with exasperating (and disturbing) displays of tribalism from the manufacturer’s fan base, Monday was a gold mine.

The social media brouhaha was a result of Consumer Reports‘ less-than-glowing review of the Tesla Model 3, which was found to have the worst braking performance of any contemporary car in the publication’s testing catalog. As Tesla disciples circled the wagon (one created a list of “bad journalists”), Tesla CEO Elon Musk responded to CR‘s findings. (Read More…)

“Lackluster” may be an understatement. In its test of the Tesla Model 3 Long Range model, Consumer Reports discovered plenty of things to like about the California automaker’s smallest electric vehicle, but two large gripes kept the publication from bestowing a coveted “recommended” tag on the sedan.

We’ve complained before — and online videos have aptly demonstrated — about how the Model 3’s massive center screen diverts too much attention away from the road by consolidating simple tasks (like adjusting the dash vents) into the menus and submenus of the vehicle’s interface, and CR‘s opinion was no different. However, the largest issue seen while driving the Model 3 was its lengthy average stopping distance.

The publication went so far as to borrow a privately owned model just to make sure its observations were legit. (Read More…)

If you had nothing better to do with your Saturday night than sit in front of the computer, you’re already well aware that the Tesla Model 3 — revealed in 2016 with a base price of $35,000 — will gain a $78,000 dual-motor performance variant, a speedier companion to the existing $44,000 Long Range model.

Currently, the LR is the only version rolling off Tesla’s Fremont, California assembly line.

So, what does this additional coinage get you? (Read More…)

Replying to an over-enthusiastic superfan on Twitter, Tesla CEO Elon Musk said orders will start this month for the dual-motor and performance variants of the Model 3 sedan. Currently, Tesla’s Fremont, California factory only cranks out the rear-drive, long range model.

Production of the higher-end models begins in July, Musk claimed, but the CEO failed to give reservation holders waiting for a base $35,000 sedan anything new to go on. (Read More…)