Conference Call Comments From Musk On Tesla Model 3 – Video/Listen
What an electrifying week it’s been.
It’s been so hectic in the EV world that we’re still trying to wrap our heads around all that went down in the past 10 days or so.
We certainly don’t want to overlook the Model 3-related comments made by Musk during the conference call that followed the Q2 report though.
So here they are (via Seeking Alpha). Also, the full conference call (minus the first ~2 minutes can be found below if anyone cares to listen to the hour+ Tesla/investor chat).
On the production front for the Model 3, Musk responded to various questions. Here are those comments:
“But what people should absolutely have zero concern about is that Tesla will achieve a 10,000 unit production week by the end of next year.”
“So, if you can sort of see where we came from, the Roadster – we were making only 600 units a week where the non-powertrain portion of the car was made by Lotus. And we did the powertrain and final assembly of the car, and then we went from that to 20,000 units a year of the Model S, a far more complex car, where we did the whole thing. And then with Model 3, we are more vertically integrated. I think people should really not have any concerns that we will reach that outcome from a production rate.”
Moving on to reservations and cancellations, Musk stated:
“So, let’s see, Model 3 net orders are – there’s not that many cancellations – about 1,800 a day. I want to emphasize you can’t see the car, unless you want to look at pictures online. You can’t test drive a car. You have to put down a $1,000 deposit.”
“I don’t think it really has much materiality, but I did misspeak at the Journalist Review on Friday. I had said that there were 500,000 net reservations. I did also say that I wasn’t sure because I don’t follow this number, and this was just a guess. And so we did check to get some precision on this.”
“So to be more accurate, there have been 518,000 gross reservations for 3, and we have 455,000 net reservations. But those cancellations occurred over the course of more than a year. The net gain since Friday, net of cancellations, has been over 1,800 per day.”
Last but not least, Musk again kinda down sold the Model 3, stating:
“But I just didn’t want to leave people with the wrong impression. I think this is inconsequential because with a small amount of effort we could easily drive the Model 3 reservation number to something much higher, but there’s no point. It’s like if you’re a restaurant and you’re serving hamburgers and there’s an hour and a half wait for the hamburger, do you really want to encourage more people to come order hamburgers? It doesn’t make sense. So I think it’s neither here nor there, but I wanted to make sure there was not a misunderstanding.”
And that’s a wrap.
Video (below): Here is the full (well, almost) Tesla Q2 2017 conference call:
Source: Seeking Alpha