Archive for the ‘model 3’ Category

Report: Tesla faces “deepening criminal investigation” into Model 3 production

October 26th, 2018
Report: Tesla faces “deepening criminal investigation” into Model 3 production

Enlarge (credit: Troy Harvey/Bloomberg via Getty Images)

Tesla is reportedly undergoing a "deepening criminal investigation" by the FBI into whether the company misled investors with respect to production of Model 3 vehicles, according to The Wall Street Journal. The newspaper cited "people familiar with the matter," who said that federal prosecutors based in San Francisco have "intensified" their work in recent weeks. Neither the FBI nor the United States Attorney’s Office in San Francisco immediately responded to Ars’ request for comment.

Kamran Mumtaz, a Tesla spokesman, sent Ars a statement, saying that earlier this year the company received a voluntary request for documents, which it complied with. "We have not received a formal subpoena, a request for testimony, or any other formal process, and there have been no additional document requests about this from the Department of Justice for months," the statement said. "Tesla’s philosophy has always been set to truthful targets—not sandbagged targets that we would definitely exceed and not unrealistic targets that we would never meet."

Mumtaz did not immediately answer Ars’ question as to whether any Tesla official had been interviewed by federal investigators.

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Posted in cars, DOJ, Elon Musk says Tesla is in Model 3 "production hell", model 3, Policy, Tesla | Comments (0)

Why almost everyone was wrong about Tesla’s cash flow situation

October 26th, 2018
Why almost everyone was wrong about Tesla’s cash flow situation


Tesla confounded critics on Wednesday by reporting healthy profits and significantly positive cash flow in the third calendar quarter.

For months—years, actually—critics have warned that cash flow problems threatened the company's survival. Many experts scoffed when CEO Elon Musk claimed back in April that he would deliver positive cash flow—and profits—starting in the third quarter of 2018. Bloomberg ran a splashy feature titled "Tesla Doesn't Burn Fuel, It Burns Cash"—complete with a graphic of Musk throwing dollar bills into a pair of Boring Company flamethrowers.

"They're going to be on the verge of bankruptcy, because they need the capital markets to survive," investor John Thompson told Fox News the same month.

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Posted in cars, Cashflow, Elon Musk, model 3, model s, Tesla | Comments (0)

Tesla lost $401 million from revenues of $2.7 billion in Q2 2017

August 2nd, 2017

Enlarge / The Tesla Model 3. (credit: Tesla)

On Wednesday afternoon, Tesla released its Q2 2017 financial results: a loss of $401 million from total revenues of $2.7 billion over the three months up until June 30th. That’s more or less the same performance as the company reported for Q1 2017, but it does show a 49 percent jump in revenue and 53 percent jump in vehicle deliveries compared to the same period in 2016. Depending upon whether Generally Accepted Accounting Practices (GAAP) were used, the net loss to shareholders was $2.04 per share (GAAP), or $1.33 per share (non-GAAP). It ended the period with $3 billion in cash.

During the quarter, Tesla produced 25,708 Model S and Model X electric vehicles and delivered 22,026 of them to customers. Sales of zero-emissions tax credits brought in another $100 million, and the company’s energy generation and storage activities saw a big increase, bringing in $287 million (compared to $214 million for Q1 2017 and just $3.9 million for Q2 2016). The company’s operating expenses actually decreased compared to Q1 2017, despite spending almost $48 million more on research and development.

In its earnings statement, Tesla revealed that it has been averaging 1,800 Model 3 reservations a day since the handover of the first production cars on July 28th. First deliveries to non-Tesla employees will begin in Q4 this year. Tesla says that production of the Model 3 will be limited by the slowest part of its supply chain and manufacturing process, but the company is confident it can build “just over 1,500 vehicles in Q3.” Output of the new EV is predicted to rise to 5,000 per week by the end of 2017. CEO Elon Musk told an earnings call that “what we have ahead of us is an incredibly difficult production ramp. But I’m very confident we can reach a rate of 10,000 vehicles per week by the end of next year.”

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Posted in Biz & IT, cars, Elon Musk, model 3, Tesla | Comments (0)

Pared-down electric experience: Driving one of the first Model 3s off the line

July 29th, 2017


FREMONT, CA—On Friday at Tesla’s factory, Ars got behind the wheel of one of the first Tesla Model 3s off the factory line. It was a quick, 5-minute guided drive around the factory, but it gave a quick impression of what may be Tesla’s most important car.

After all, Tesla has been working up to the launch of the Model 3 for years. CEO Elon Musk’s dream has been to build an affordably-priced electric vehicle for mass production, and he’s consistently framed the the Roadster, the Model S, and the Model X  as luxury vehicles destined to subsidize a lower-priced electric car for the masses.

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Posted in cars, Chevrolet Bolt, model 3, model s, model x, Tesla | Comments (0)

Tesla “hell-bent on being the world’s best manufacturer“ after $283 million loss

May 4th, 2016

Eventually, Ars got a quick 2-minute ride in the Model 3 pre-production prototype. (credit: Megan Geuss)

On Wednesday, Tesla reported a $283 million loss for Q1 2016, its 12th straight quarterly loss in a row. Last quarter, Tesla CEO Elon Musk said that Tesla would find itself in the black this quarter, but that prediction did not pan out. Still, the loss was narrower than Wall Street expected, leading to a 4.4 percent climb in stock price in after hours trading as of this writing. (Tesla’s Q1 loss is a wider $320 million according to Generally Accepted Accounting Principles (GAAP), which includes stock-based compensation and treats vehicle leases differently.)

Still, the company’s overall quarterly revenue rose 22 percent from Q1 in 2015 to $1.6 billion (or 1.15 billion according to GAAP).

In addition, Tesla said it would be sticking by its promise to deliver 80,000 to 90,000 vehicles this year, and it made its long-term delivery outlook more aggressive, promising 500,000 Teslas on the road by 2018 instead of 2020.

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Posted in Cars Technica, model 3, Tesla | Comments (0)

Elon Musk hints at Tesla Model Y with falcon-wing doors

October 7th, 2015

Elon Musk, the world’s greatest one-man PR machine, has hinted at the existence of another Tesla: the Model Y.

Musk revealed the information in a tweet last week, which he quickly deleted. Musk had taken to Twitter following the début of the Model X—Tesla’s SUV with falcon-wing rear doors. A fan tweeted at Musk, saying she would love for the Model 3 to have falcon-wing doors as well. Somewhat surprisingly, Musk responded with: “There will be a Model 3 and a Model Y. One of the two will.”

At this point, we’re fairly certain the Model 3 won’t have falcon-wing doors; all signs point to it being a smaller, cheaper version of the Model S. It would follow, then, that the Model Y might be a smaller, cheaper version of the Model X. Tesla trademarked the name “Model Y” back in 2013, around the same time that it trademarked the Model E.

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Posted in Cars Technica, Elon Musk, model 3, model x, model y, Tesla | Comments (0)