For only the third time in the company’s history, Tesla reported a quarterly net profit on Wednesday, though this time the automaker says it’s back in black for good.
Third-quarter GAAP net income was $312 million, Tesla revealed, with the company’s performance fulfilling CEO Elon Musk’s earlier promise to become cash-positive by Q3 2018. The automaker’s free cash flow was $881 million for the quarter.
Give thanks to the tent. (Read More…)
How quickly things change. In today’s era of #disruption, standing still equates to certain death, but pricing isn’t normally the thing seeing the greatest change.
Not at Tesla. Less than a week after the automaker announced a new Mid Range Model 3 that splits the difference between the Long Range variant (now available only in dual-motor guise) and the still-unattainable $35,000 base sedan, the model’s price has undergone a refresh. Musk Math must be at work. (Read More…)
Back in September, the House of Elon decreed the Model 3 would be available in fewer colors, an apparent effort to streamline production of the company’s first high-production model. By restricting two of the seven hues – Obsidian Black and Metallic Silver – to special request status, it is arguable easier to move more machines out the factory (tent) door.
Now, option limitations are being applied to the megabuck Model S and X as well. Musk announced yesterday – via tweet, of course – that “many” interior configurations will not be available after the end of this month.
Tesla Motors is abandoning the “fully self-driving” purchasing option on all of its vehicles. The option debuted in 2016 as a way to ensure your new car would be future-proofed and able to incorporate autonomous features. But those upgrades never really came — leaving customers who spent $8,000 angry enough to file a class-action lawsuit against the company for failing to deliver on its promises. At least they still got those EV tax credits and free access to the company’s fancy new Autopilot chip (which is also a bit of a mystery item).
The option appears to have been removed from Tesla’s website this week — prompting customers to ask CEO Elon Musk what was up after he announced a rejiggering of the Model 3 lineup. According to a tweet from Musk, the self-driving option was removed because it “was causing too much confusion.”
Well, whose fucking fault was that? (Read More…)
Tesla’s Model 3 line as evolved once again, this time adding a new model closer to the bottom of the range while eliminating the second-cheapest configuration (and currently the cheapest Model 3 you can actually get delivered).
Announced Thursday night, the rear-drive Model 3 Long Range — which started at $44,000 but required the addition of a $5,000 premium package — is gone from the lineup, replaced by a Mid Range sedan with two driven wheels and a lower-capacity battery. The price for 50 fewer miles of range? $45,000. (Read More…)
Tesla CEO Elon Musk says a new chip aimed at improving its vehicles’ Autopilot features will be available in about six months.
However, if you’re hoping the automaker is preparing to light some candles and knock its vehicles up with legitimate self-driving technology, you’ll need to keep on wishing. During a string of tweets on Tuesday, Musk explained that the new chip would be a $5,000 extra for customers who did not purchase their cars with the “Full Self-Driving” package — an automotive claim that’s about as valid as Donald Trump’s hair or Elizabeth Warren’s status as a Native American. (Read More…)
Tesla CEO Elon Musk will soon be gone as company’s chairman, but a replacement — someone who’ll need to occupy the position for three years — has yet to be named.
The hourglass was flipped after U.S. District Judge Alison Nathan approved a settlement between Musk and his company and the U.S. Securities and Exchange Commission Tuesday. Musk has 45 days to step down as chairman. Double the amount of time is allowed for the automaker to name two independent board members, though Musk and Co. only have two weeks to pony up their $20 million fines.
The settlement, which stayed on track despite Musk’s attempt to screw the whole thing up, contains a punishment perhaps far greater than those listed already: Musk now requires a Twitter parent. (Read More…)
Tesla CEO Elon Musk’s brilliant idea to call the Securities and Exchange Commission the “Shortseller Enrichment Commission” in a recent tweet did not land the impulsive executive in any additional hot water. The SEC, which decided that removing Musk from the chairman’s position and fining both him and the company $20 million was sufficient punishment for the August 7th “funding secured” tweet, still thinks it’s an appropriate settlement.
The two sides came together in agreement on Thursday, signing off on the settlement and submitting it to a judge. (Read More…)
Following the release of crash test results in 2013, Tesla claimed the Model S earned more than five stars on the National Highway Traffic Safety Administration’s ranking scale. Nuh uh, said the NHTSA. There’s only five stars to hand out. No one gets more than that.
Fast-forward five years and the exact same thing is occurring, this time centered around the just-tested Model 3. That sedan, which still isn’t cheap, earned five stars in all NHTSA crash categories. Kudos to Tesla engineers. However, the NHTSA isn’t happy with Tesla’s weekend boast that suggested the Model 3 is the safest car ever tested by the federal agency. (Read More…)
Tesla CEO Elon Musk loves railing against shortsellers to the same degree that normal, regular people enjoy eating and breathing. As his company’s stock continues a downward slide initiated and perpetuated by Musk’s completely avoidable antics, the CEO decided that mocking a securities regulator and endangering a settlement reached on Saturday was a good and proper course of action. And so he took to Twitter Thursday night to make it happen.
It’s gotten to the point where young investors and diehard Tesla fans have taken to social media, begging him to cut it out. (Read More…)
If that headline was a tweet, it would certainly qualify as “evergreen.”
With Model 3 production having ramped up towards the very end of the previous quarter, Tesla production in the third quarter of 2018 totalled 80,142 units, some 53,239 of them Model 3s. Compared to the 53,339 vehicles built in Q2 2018, it’s a hefty increase in output.
However, lost in the megaton-yield controversies that follow Tesla CEO Elon Musk like a stray dog in search of a home is the fact that Q3 production didn’t quite make it to an oft-promised target. (Read More…)
Consequences have come swiftly for Elon Musk.
Less than two months after he tweeted that he had secured enough funding to take Tesla back private, and just a few days after being charged with securities fraud, Musk has settled with the Securities and Exchange Commission after the SEC charged him with “false and misleading” statements and a failure to properly notify the regulators of material company events.
Yesterday’s end-of-day fraud lawsuit filed against Tesla CEO Elon Musk by the Securities and Exchange Commission needn’t have happened, CNBC reports. The CEO and founder turned down a settlement deal that would have seen him pay a “nominal” fine and remove himself as chairman, sources claim. Instead, Musk did what he does best. He went his own way, greatly increasing risk both to himself and his company.
Still, Tesla’s board stands by its man, releasing a statement late Thursday to this effect. According to Bob Lutz, outspoken industry titan, the board should have told Musk to hit the bricks. (Read More…)
Documents filed in a Manhattan federal court Thursday reveal the U.S. Securities and Exchange Commission is suing Tesla CEO Elon Musk for fraud. The SEC opened an investigation into Musk after the CEO fatefully tweeted his intent to take the company private. “Funding secured,” Musk wrote in the August 7th tweet.
The go-private plan quickly fell apart. In the lawsuit, published by Bloomberg, the SEC accuses Musk of fabricating the claim made to 22 million social media followers, many of them investors. (Read More…)
When Tesla Motors began production of its Model 3 sedan, CEO Elon Musk announced the firm was entering into a kind of “production hell.” He probably didn’t realize just how accurate a statement that would turn out to be. Already contending with a backlog of orders for the Model 3, Tesla simply couldn’t meet the volume targets it set for itself over the last year. It’s now bending over backwards to finish the quarter strong and prove to investors it is capable of turning a profit.
The automaker frequently referenced production bottlenecks as the culprit for the Model 3’s delay. Panasonic, the sole battery supplier for the vehicle, appears to be taking ownership of the issue. “The bottleneck for Model 3 production has been our batteries,” Yoshio Ito, Executive Vice President of Panasonic, said on Tuesday. “They just want us to make as many as possible.” (Read More…)
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