Bob Wilson
Tesla Q2 earnings call
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Bob Wilson
Here is the SEC filing: tsla-ex991_6.htm
The video is an hour long summary. The written report has the meat:
Tesla Second Quarter 2018 Update
In July 2018, Model 3 not only had the #1 market share position in its segment in the US, it outsold all other mid-sized premium sedans combined, accounting for 52% of the segment overall. The popularity of Model 3 is a true testament to the product. Based on trade-ins that we’ve received so far, we can see that the total addressable market for Model 3 is much larger than mid-sized premium sedans. We are drawing customers from many other segments, including non-premiums sedans and hatchbacks.
Tesla is replacing the earlier 'reservation' system with with direct orders. This punctures the FUD about canceled reservations. Not stated, this also increases the down payment held by Tesla while vehicle production is scheduled which augments the existing $1,000 reservations. But it also means Tesla schedules production based on direct, identified customer demand . . . "build to order."
"There were no ZEV credit sales in Q2 as compared to $50 million in Q1" and this means that market opportunity has evaporated for all Tesla competitors. It also ends another FUD claim about being supported by government regulations. Compared to what fuel cell vehicles are going through, a stark contrast.
If you want to see Elon's brilliance, read the section "Cash Flow and Liquidity." I'm not going to quote it because it is so good in the original. He is the 'Spock' of car makers.
Bob Wilson
The video is an hour long summary. The written report has the meat:
Tesla Second Quarter 2018 Update
- Q2 Automotive gross margin increased to 20.6% GAAP and 21.0% non-GAAP
- Model 3 gross margin turned slightly positive in Q2, expecting roughly 15% in Q3
- Expecting to produce 50-55k Model 3s in Q3; deliveries should exceed that
- Major cost restructuring executed in Q2
- $2.2B of cash and cash equivalents at Q2-end, expected to grow in Q3 and Q4
- Capex (capital expenditure rjw) projection in 2018 adjusted to <$2.5B
In July 2018, Model 3 not only had the #1 market share position in its segment in the US, it outsold all other mid-sized premium sedans combined, accounting for 52% of the segment overall. The popularity of Model 3 is a true testament to the product. Based on trade-ins that we’ve received so far, we can see that the total addressable market for Model 3 is much larger than mid-sized premium sedans. We are drawing customers from many other segments, including non-premiums sedans and hatchbacks.
Tesla is replacing the earlier 'reservation' system with with direct orders. This punctures the FUD about canceled reservations. Not stated, this also increases the down payment held by Tesla while vehicle production is scheduled which augments the existing $1,000 reservations. But it also means Tesla schedules production based on direct, identified customer demand . . . "build to order."
"There were no ZEV credit sales in Q2 as compared to $50 million in Q1" and this means that market opportunity has evaporated for all Tesla competitors. It also ends another FUD claim about being supported by government regulations. Compared to what fuel cell vehicles are going through, a stark contrast.
If you want to see Elon's brilliance, read the section "Cash Flow and Liquidity." I'm not going to quote it because it is so good in the original. He is the 'Spock' of car makers.
Bob Wilson