Tesla Owns 80 Percent Of U.S. BEV Sales After Another Profitable Quarter

JAN 31 2019 BY EVANNEX 21

WITH BACK-TO-BACK PROFITABLE QUARTERS, TESLA NOW OWNS 80% OF US EV SALES

With back-to-back profitable quarters under its belt, Tesla is kicking off 2019 with an emphasis on financial discipline. Engadget reports, “Tesla’s 2018 fourth-quarter results showed the company still made a profit ($139.5 million), but it was smaller than that of the third quarter ($311.5 million). For the quarter, the company posted $7.23 billion in revenue. Last year’s revenue was $3.29 billion. Overall for 2018 it reported $21.4 billion in revenue.”

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman. The opinions expressed in these articles are not necessarily our own at InsideEVs.

Above: Tesla’s Model 3 getting charged (Flickr: mariordo59)

The culprit behind the numbers? “A lot of this had to do with Model 3 sales which accounted for 80 percent of all EV sales in the US in 2018 according to Musk.” In 2018, according to Tesla’s Shareholder Letter, “Model 3 then went on to become the best-selling passenger car in the US in terms of revenue in both Q3 and Q4. With nearly 140,000 units sold, Model 3 was also the best-selling premium vehicle (including SUVs) in the US for 2018 – the first time in decades an American carmaker has been able to secure the top spot.”

So what can we expect from Tesla in 2019? Musk elaborated on the earnings conference call (via CNBC), “Even if there’s a global recession, we’re expecting deliveries this year to be about 50 percent higher than last year. And it could be a lot more than that, but even with tough economic times to see 50 percent growth is pretty nutty.” Musk also teased, “We might be ready to unveil [Tesla’s Pickup Truck] this summer… It will be something quite unique, unlike anything.”

And for this year, Wired reports, “Tesla is focusing its efforts on a few key areas, Musk said on an earnings call: reining in costs, improving its service operations, getting Model 3 sedans to customers in Europe and China, and preparing for production of the Model Y, the as-yet-unseen midsize SUV that will follow the Model 3… Musk predicted that demand for the Model Y will outpace that for the [Model] 3 by 50 or even 100 percent.”

Above: Model 3 is allowing Tesla to win the top spot for both EV and premium vehicle sales in US (Source: Tesla’s Shareholder Letter)

Furthermore, “Tesla is now starting to put together the tooling that will allow for production of the Model Y… The midsize SUV will share more than three quarters of its parts with the Model 3, and Tesla will likely build it at its Gigafactory battery plant outside Reno.” Musk said, “Batteries and powertrains will come out and go straight into the vehicle.”

However, a timeline for Tesla’s base price $35,000 Standard Range Model 3 still remains fuzzy — Musk said it was to be expected sometime “middle” of the year. Nevertheless Musk stated, “The demand for Model 3 is insanely high… The inhibitor is affordability.”

Yet, as Model 3 expansion efforts and production ramp progresses in 2019 across the globe, Tesla should realize significant economies of scale. Meanwhile the company’s critical Shanghai Gigafactory is being built at “lightning” speed according to Musk who gets daily updates on progress from Tesla’s China team.

Above: Tesla’s Q4 earnings call – note: discussion starts at 17 minutes and 14 seconds into the recording (Youtube: Chanon Bros via CleanTechnica)

Finally, CFO Deepak Ahuja is retiring (once again, for the second time) but leaving the company on solid footing. Even with debt payments coming, CNBC reports, “Tesla says it has enough cash to ‘comfortably settle’ its $920 million bond payment” which comes due March 1st.

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Source: Tesla’s Shareholder LetterEngadgetWiredCNBCCleanTechnica

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers, free of charge. Our thanks go out to EVANNEX. Check out the site here.

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21 Comments on "Tesla Owns 80 Percent Of U.S. BEV Sales After Another Profitable Quarter"

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Funny how after all the positive news the last couple days, Tesla’s stock drops considerably. The media finds the only negative (which is contrived) in the retirement of their CFO and continue with the doomsday narrative. Honestly, I believe the most accurate view of how Tesla is really doing is via the media negativity and scrutiny, which is at a panicky all-time high right now. Every milestone is being met with a negative spin, wonder why that is??

Mainly because media not getting ad revenue from Tesla. Media are digging their own grave with their disgusting journalism.

Media only reports the news. Analysts present there views and they all run together in one direction. Until there proven wrong and then change direction. It’s usually a good time to sell when all analysts are recommending a stock. You want to buy stock when there a wall of fear. Analysts are typically wrong that’s why their recommending stock instead of just making money buying and selling stock.
You have to filter out the noise.

While I agree with you, the media not only reports the news, they decide which news to report, and how to report it. Kinda like the recent Tesla news. Tesla makes a profit (good), and the media says the profit isn’t high enough (bad). Also like now that the $35k Model 3 is looking pretty real this year, the media now refers to it as a “profit killer.”

That’s okay though it’s climbing the wall of worry that will continue propelling Tesla higher. Once all the news is favorably it’s to late to get in.

Ron you win the award for most awesome use of there their and they’re!

Yeah I’m guilty. I not only need spell check but grammar check. lol

There there, don’t be so critical.

How many times do i have to say that the market front runs everything….so unless a big surprise it’s announced the stock will TRADE normally. Tesla stock is in a 350-250 range right now so buy it at 250 and….you know the rest.

Tesla should be heralded as a developing success story. Tesla’s mission is something we should all be cheering for. Tesla is growing in a tough business. Wow!

Analysts said that if Waymo was spun off it would be valued at about 150 billion.
Tesla has more data that Waymo and further along with autonomous driving.
Yet analysts value Waymo at 3 times the value of Tesla.

What will the excuses be now that Tesla is profitable? All those “But Tesla isn’t a profitable company” people need to think of another excuse. Along with the “it’s a small company” or “they are a niche company” people.

The loan due that will take 1/4 of their cash on hand will bankrupt them. Q1 will be a loss and will bankrupt them. The Big Boys will walk in at any time now and take their market share and bankrupt them. Musk smokes pot and will bankrupt them. The Model Y can’t be made, won’t make a profit, and will bankrupt them. The Semi is impossible, won’t make a profit and will bankrupt them. The truck can’t be made, won’t make a profit, will bankrupt them.

The FUD will continue, but fewer and fewer people will listen.

Bloomberg Tesla tracker jumped to 5360 Model 3 estimated per week. Starting to pick up.

Above is the first graph I remember that showed US sales of Tesla vs all the other companies. Sad that the others are stuck between 10,000 and 12,000 per quarter. Can anyone else make an EV with mass appeal?

Please don’t pay attention to the Bloomberg tracker. It is more misleading than it is right.

I wonder if his expectation for the Y having greater sales than the 3 is due to it’s lower entry price point. Noting that the X is just $3k more than the S, while the X has the expensive winged rear doors that had to add more than $3k to the cost of the X . Tesla has been clear about ‘affordability’ with it’s new models, with the Model 3 already marketed in the UK at $35k and 220 miles with the intent to increase sales through affordability. For the Y suv to offer a 50 to 100% increase in sales volume, knowing that affordability is key, Tesla has to at least match the Model 3 at $35k or with the expected higher volume and shared components with the Model 3, pull the pricing down below $35k near $29k. Remembering that VW is coming with their ‘affordable’ I.D 5-door that may be targeting the same price point and the same customers. China also demands ‘affordability’ to compete in that EV market. This again would disrupt the global auto industry by offering the utility/suv at a lower price than the sedan…initially. But put it within reach of consumer brand compact suv… Read more »

The uninformed keep mistaking Tesla for just a car company. Tesla is a Sustainability Solutions Provider.

NPNS! SBF!
Volt#671 + BoltEV + Model 3

LOL….that’s cute!
They are what they make most of their money from.

Please correct the misleading title. The term “EV” should mean the same thing across the site: both BEVs and PHEVs.

Tesla likely got 80% of BEV sales, not all EVs.

Good catch. EVANNEX doesn’t deal with PHEVs. Our use of the term is different. Thanks for pointing it out.

Will the main street give credit to Tesla for being World #1.