Tesla Q1 2017 Earnings: Model 3 On Track For July Production Start

10 months ago by Jay Cole 75

It’s time to talk Tesla earnings…but also to get an update on the upcoming Model 3!

Earnings reports at Tesla have become a popular thing.

And not just because Tesla’s market cap recently soared past the $50 billion mark, but because it is our best window into the disclosures and updates around the Tesla Model 3.

Tesla Model 3 expected to arrive in the second half of 2017, in volume for Q4

But first, earnings.

The market consensus was for an expected a loss of 82 cents a share heading into the report, on revenue of 2.55 billion.

In actual fact Tesla lost more than expected at $1.33 per share, but revenue came in higher at $2.7 billion.

Operating expenses were up $224 million sequentially.

Behind those numbers Tesla pointed out that the results reflected a full quarter of SolarCity’s operating expenses, and also $67 million of non-recurring charges related to acquiring SolarCity and Grohmann, as well as the wind-down of work for Daimler.

“Excluding these items, vehicle-related operating expenses increased only 8% sequentially despite significant Model 3 vehicle development progress and expansion of our customer support infrastructure.”

Tesla says its up to $4 billion in cash reserves (“the highest level of cash we have had at quarter-end in our history”), after raising $1.22 billion during Q1 between share and convertible note sales.

Q1 Deliveries

Last month, Tesla estimated it sold just over 25,000 EVs during Q1, which was higher than expectations. Now, with this report we get to see the specific results of the January to March period, with Tesla confirming that 25,051 were sold.

Tesla left first half sales expectations unchanged:

“Based on our current order and production rates, our first half outlook remains unchanged at 47,000 to 50,000 deliveries, which represents 61% to 71% annual vehicle delivery growth.”

Update from conference call: We can almost feel CFO Ahuja’s head exploding, as CEO Musk breaks the party line of non-disclosure on 2nd half sales/production estimates and says things are looking pretty good for making 100,000 Model S/X EVs by years end.

Tesla Model 3 Update

No need to bury the headline, as the question on everyone’s mind was answered very clearly.  Tesla is on track to begin Model 3 production as promised this July.

“Model 3 activities related to vehicle development, manufacturing equipment installation and supplier readiness remain on plan to start production in July.”

Update from conference call:  Obligatory question on Model 3 reservation status/backlog is asked. Musk takes the bait…at least a little bit, says that it “continues to climb week after week”.  (The last official count was from May 2016 when 373,000 were noted, and later it was disclosed about 8,000 of those were cancelled)

Tesla Model 3 “release candidates” have hit the road for product validation

Further to the development and preparation of the Model 3, Tesla gave this expanded statement, as well as underlined earlier 2017 production guidance:

“Model 3 vehicle development is nearly complete as we approach the start of production. Release Candidate vehicles, built using production-intent tooling and processes, are being tested to assess fit and finish, to support vehicle software development and to ensure a smooth and predictable homologation process. Road testing is also underway to refine driving dynamics and ensure vehicle durability.

Simultaneously, preparations at our production facilities are on track to support the ramp of Model 3 production to 5,000 vehicles per week at some point in 2017, and to 10,000 vehicles per week at some point in 2018.

We recently powered on our newest Schuler press line, and have started the commissioning process. This will allow sufficient time to install and tune die sets ahead of volume production. Paint shop preparation has been completed and installations of our dedicated Model 3 body welding and general assembly lines are progressing well. Equipment installation is also underway for volume manufacturing of cells, modules, battery packs and drive units at Gigafactory 1. We are working closely with all Model 3 suppliers to ensure their readiness ahead of start of production.”

Update from conference call: The Tesla is asked about the progress on automation for the Model 3 as compared to peers.  Musk says that the automation on the Model 3 will be about equivalent to other “high-volume” offerings on the market, but that the next generation of EVs will be better.

Of note: the “Model Y” is given a rare reference, with Musk saying a “really big change” will be undertook with the company SUV – without further detail.

Update from conference call (2):  Check that last comment, a further question on the Model Y is asked, and Musk offers that aspirationally it would appear “at the end of 2019”

Update from conference call (3):  Was there a memo to for all the analysts to talk Model Y?  Someone asked about the production line for the Y, and if it will be built on a different platform that the Model 3.  We expected no answer, or one in the affirmative…but got neither, with Musk saying that “yes” it will be a different platform.  Can this be accurate in the truest definition of platform sharing?  Hard to say, we think not.

The Tesla Model S is (and will be) the superior offering over the Model 3…but Tesla isn’t quite sure its customers understand that

The Tesla Model 3 is not a new/better Model S

During its Q1 report, Tesla took great pains to detail concerns of its customers believing that the Tesla Model 3 was a superior product to the exiting Model S.

The company went as far as to say that the Model S will always have more range and acceleration than the 3, as well as more luxury options; but that the Model S, X and 3 will be equal when it comes to Autopilot.

“Moving past Q2, particularly as Model 3 becomes available, one of our challenges will be to eliminate any misperception about the differences between Model S and Model 3.

We have seen a belief among some that Model 3 is the newest and more advanced generation of Model S. This is not correct. Model S will always have more range, more acceleration, more power, more passenger cargo room, more displays (two), and more customization choices, and Model S, X and 3 will all have equivalent Autopilot functionality. We will continue to clearly communicate these distinctions to avoid any misperceptions.”

Update From conference call:  Musk says he is optimistic about the future, also comments (when asked) on Tesla’s upcoming Semi-Truck project, says it will defy expectations, and that it is a “cool product”.

Says that everything in the transportation segment will go fully electric (“no easy away around Newton’s third law), with the notable exception of…drum roll, rocket ships.


Tesla is build more “large delivery hubs” this year (Huge Tesla Hong Kong Service location shown above)

Infrastructure: Retail and Service Outlets

Tesla says that ahead of the launch of the Model 3, it is now “significantly expanding” the infrastructure behind future owners of the less expensive EV, and that repair wait times are already down 35% in 2017.

In total, Tesla is aiming to “add nearly 100 retail, delivery and service locations globally”, this would roughly increase the company’s worldwide footprint by about 30%.  The company is also adding 100 mobile repair trucks.

On augmenting service:

“To significantly improve the customer experience with out-of-warranty body repairs, we intend to open the first Tesla-owned body repair shops later this year and expand the existing network of third party Tesla certified body shops.”

Tesla says that new service and retails locations will be “generally larger” than earlier spot, citing success of recent test locations of “large delivery hubs” in Los Angeles, San Francisco, Hong Kong and Beijing.

“Delivery hubs create an exciting reception for new customers and support much higher delivery levels, so we plan to expand this customer experience to more cities.”

The future: Tesla New Supercharger Location Rendering


A common concern with the arrival of the Tesla Model 3 is Supercharging; specifically that many Supercharging stations are already quite busy…so more are needed.

“To advance electric vehicle adoption, we will continue to invest in charging infrastructure globally. In 2017, we expect to at least double the number of Superchargers and Destination Charging connectors globally to more than 10,000 and 15,000, respectively.”

Also, the individual stall count at new stations in busy locations is set to rise:

“We intend to build larger sites along the busiest travel routes and broaden the number of charging locations in urban centers to make charging ubiquitous and convenient for everyone.”

Tesla Solar Panels & Powerwall

Tesla Energy:  Storage and Solar

  • 150 MW of solar energy generation deployed in Q1
  • 60 MWh of energy storage installed in Q1

Tesla noted that it is taking the focus away from the growth of its solar business, and instead will be “deploying projects that have higher margin and generate cash up front”, a plan we recently saw in action with SolarCity as the company is discontinuing door-to-door sales this month.

“Consequently, solar energy generation deployments in Q1 2017 declined year-over-year, but had better financial results. Furthermore, the portion of residential customers who elected to purchase rather than lease a solar system grew to 31% of deployments in Q1, up from 9% a year ago, improving the cash generation of this business.”

On moving solar “in house” at Tesla retail locations:

“Recently, we tested sales of our solar and storage products in several Tesla stores, and saw sales productivity improve 50% to 100% relative to the best non-Tesla retail locations.

Based on these results, we are working towards fully staffing more than 70 Tesla stores in the U.S. and abroad with dedicated Tesla energy sales people over the next two quarters.”

Update from conference call:   Lots of back-orders/demand for Tesla’s Powerwall product, mostly due to an undisclosed manufacturing issue of late.

Tesla Solar Roof “pilot” production starts soon in Fremont, later at main facility in Buffalo with partner Panasonic

Solar Roof Tiles

Tesla is set to start “pilot” manufacturing of its Solar Roof tile products next month at its Fremont facility, then the company states after validation, it will “transition to Gigafactory 2 in Buffalo, New York”.

Earlier this week, CEO Elon Musk stated that 2 (of the 4) Solar Roof tiles would be delayed into 2018, but the other two would be made available by year’s end.


While the company did not say it in so many words, we get the feeling they really have no clue how many deliveries in will make in the second half, or how well the Model 3 roll-out ultimately will go, something that was evident as Tesla tried to address the questions behind future sales:

“We will provide guidance on vehicle deliveries for the second half of this year after we have started Model 3 production in July.

Given that we will be ramping Model 3 production so quickly, as we’ve noted before, even a couple-week shift in timing can have a meaningful impact on total deliveries.”

How did shareholders feel about the Q1 report?  Feelings were mixed to slightly negative, as the shares traded mostly unchanged for the first hour to down ~2% in extended after-hours action.  A real-time quote on TSLA can be found here.

Update from conference call:  Tesla CEO is asked about his feelings on a future market cap akin to Apple (~$700 billion).  Musk seems ok with the notion saying there is  “a clear path to that outcome”, although he adds that the sentiment “might” seem delusional.

And on that note, that will just about wrap up our coverage of Tesla’s Q1 2017 report.  Have a good one everyone!

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75 responses to "Tesla Q1 2017 Earnings: Model 3 On Track For July Production Start"

  1. Jim stack says:

    Tesla is growing very fast and profits are not a priority at this point. Someday when froth slows more profits will be available. For now growth and I novation are rhe key drivers.

  2. BenG says:

    Good news that the Model 3 is on track.

    R.e. “Given that we will be ramping Model 3 production so quickly, as we’ve noted before, even a couple-week shift in timing can have a meaningful impact on total deliveries.” – This is why I’m skeptical about them hitting all of their goals this year. Even though things are moving along so far it will not take much of a disruption at all to make the goal of hitting 5,000/week in 2017 into a fantasy.

    In a production this complex there are bound to be some issues. If they are able to ramp up to 2,000/week by the end of the year I’ll be impressed.

    1. Nix says:

      Without trying to actually predict anything, but just to riff off you post and put some numbers behind it, consider these numbers (just for fun):

      1,000 units a week starting in July, ramping up to 2,000 units a week in December would be ~30,000 units by the end of 2017.

      1,000 units a week in July, August, and Sept, 2,000 units in Oct and Nov, and 5,000 units a week in Dec would be ~50,000 units by the end of 2017.

      30-50K units would be pretty impressive.

      1. Pushmi-Pullyu says:


        Hmmm, I realize you were just citing sample figures, not making any prediction but let’s keep in mind that Elon recently talked about Model 3 production ramping up in an “S-curve”.

        So, rather than starting with ~1000 units in the first week of production, I’d estimate only a few score, or at most a few hundred per week for the first few weeks.

        The “S-curve” of accelerating production fits very well with what we’ve seen before, with the MS and MX. The initial production will be very slow, and only slowly ramp up during the first few weeks or months. But the rate at which it ramps up will accelerate, until it reaches well over half what Tesla’s target is, then it will slowly taper off as it approaches the full production rate… which I think Tesla wants to achieve by the end of 2018, but (my opinion only) may not reach until 2019.

        1. Nix says:

          Yup. I agree. But even if they lost all of July to delays, and hit only half those numbers in August, that’s still around 20K-40K.

          But that’s exactly where I didn’t want to go with this, so I’ll stop here…..

          1. BenG says:

            Yeah, I could see them hitting 20k sales in 2017, with a pathway something like a month delay on production, then a couple hundred a week in August, 500-1,000/week in Sept to October, 1,500/week in Nov. and 2,000/week in Dec.

      2. JeremyK says:

        I think the launch is going to be much more conservative than this. Maybe 1000 vehicles in the first month, ramping to 2000/mo by the end of the year. Tesla is going to have myriad issues to sort out due to their accelerated/rushed implementation of production tooling. You don’t want to jump in and start cranking out 1000 cars/week only to find out a few months later that a weld was missed or a seal wasn’t installed properly…now you’ve got 10K cars that have to be quarantined/repaired and/or recalled. Huge risk by ramping too quickly. All Tesla HAS to do is crank out a handful of cars (like 100) in July and the faithful will be satisfied.

        1. BenG says:


        2. Nix says:

          True. My point on the numbers though wasn’t to pin exact numbers on each week, but to show how quickly the numbers can pile up. Even when talking about just 1,000 or 2,000 a week. Or even just a few weeks of 5,000 units.

          Before you know it, it quickly adds up to 10’s of thousands of cars.

          That would be huge for just half a year of sales, for a company that had less than 80K in total global sales in 2016. On an annualized basis, 20-40K in the last half of the year would be 50-100% growth over 2016!!

  3. Mystery says:

    If only 10k of 25k in US, where did 60% of this 15k end up Internationally? Definitely not to China customers. some smoke & mirrors warehouse, or the Bermuda Triangle.

    1. Just_Chris says:

      There are about 194 countries other than the USA and China. 15k is not that big a number.

    2. Nix says:

      One-time delays due to HW2 caused “cars missing shipping cutoffs for Europe and Asia. Although we tried to recover these deliveries and expedite others by the end of the quarter, time ran out before we could deliver all customer cars. In total, about 2,750 vehicles missed being counted as deliveries in Q4”


      These cars were counted in Q1, exactly as Tesla advised. This accounts for the abnormal shift towards EU and Asia deliveries in Q1.

      Now that you have been fully informed, with sources, please retract your implications that Tesla falsified deliveries. Your prompt response is required.

    3. Murrysville EV says:

      “…some smoke & mirrors warehouse, or the Bermuda Triangle”

      Yes, because Tesla likes to build cars only to dump them into the ocean, and not get paid for them.

      1. Pushmi-Pullyu says:

        Why is it that Tesla bashers and anti-Tesla FUDsters keep trying to float this idiotic conspiracy theory that Tesla is making more cars than it can sell?

        Heck, there are people on the Tesla Motors Club forum that track individual VIN numbers through Tesla’s production! If there really were a bunch of Teslae which rolled off the assembly line but mysteriously didn’t get shipped to a buyer or used for demo/loaner units… then those who are keeping watch would spot that PDQ!

        Of course, things like facts and logic won’t stop these idiotic conspiracy theories, will they? Apparently some people prefer “alternative facts”… 🙄

        1. unlucky says:

          There are many which come off the line and don’t go to customers. Tesla does stock cars now, they aren’t all build to order. None of those would show up as undelivered on the sites where people track their own cars because they only track cars that were ordered.

          I think when people suggest Tesla’s production doesn’t match the sales they are suggesting Tesla is pushing cars into other quarters. I’m nor sure why they do this since there is no real advantage to building a car and not selling it until later.

          1. Nix says:

            unlucky — wrong yet again.

            All the Inventory car VIN numbers are tracked too. Which is where the data on the roughly 500 Inventory Model S and Model X cars come from:


            When do you get tired of saying dumb things, just to get proven wrong?

            1. unlucky says:

              I’m not That site tracks cars after they appear as CPO. It wouldn’t mean that if a VIN were allocated and then unused/delayed it would be noticed by that site.

              I don’t think you really are even trying to understand what I’m saying. If Tesla were to count a car as built that wasn’t built or was built but held in-house it wouldn’t show up on that site as a new unit because no one knew it existed until Tesla announced it as such a unit.

              And I’m not hearing anything about who is putting up false information from the guy who claimed that Tesla was taking reservations/orders on roofs when they aren’t and somehow knew the level of reservations/orders taken when Tesla didn’t release any of that info.

              1. Nix says:

                unlucky — If you want to fall for the latest conspiracy nuttery, it is your embarrassment, not mine. How embarrassed are you about buying into the Model 3 not being built until 2019/2020?

                As for the solar roof, go here and fill in your information, and if your home is eligible, a nice person will put you on the wait list for a solar roof. They can explain it all to you. If you are nice back, they may even give you an idea of how far you are down the wait list, by letting you know how long you will have to wait. They have been putting people on the waitlist since October.


                Your ignorance of their wait list doesn’t mean it doesn’t exist.

              2. EV-CPO says:

                >>> That site tracks cars after they appear as CPO.

                unlucky — your handle is quite appropriate for your posts.

                https://ev-cpo.com tracks all CPO *and* new Inventory cars.

                >> It wouldn’t mean that if a VIN were allocated and then unused/delayed it would be noticed by that site.

                Yes, actually, that’s exactly what it means. Tesla does build cars (not many) that are not customer orders and lists them for sale at: https://www.tesla.com/new

                About half of the Model S Inventory cars currently listed have exactly 50 miles. These are new cars, not demos or loaners that Tesla built not for a customer order (or a cancelled customer order) and is sitting on a lot ready for sale.

    4. Rob Stark says:


      According to research firm JL Warren, as reported on by Fortune magazine, Tesla imported 4799 vehicles into China in the first 3 months of 2017.

      1. Mystery says:

        Yes read your article – around 15% of sales (that would mean normally less than 4K) to China – demand to End Buyers mysteriously unknown (no registration data like tracked in US by insideEVs)
        “The latest first quarter data track imports, not end sales to buyers”.
        who bought 5% of Tesla cash infusion..

        1. Pushmi-Pullyu says:

          Let me guess: You are a heavy investor in “shorting” Tesla stock, you’re smarting from the money you’re currently losing, so you’ve come here to post the same sort of stupid conspiracy theories they’ve been flogging on Seeking Alpha and other “investor” sites for years, in the hope that you might actually fool some people who aren’t familiar with how anti-Tesla trolls have been trying to spread such conspiracy theories for years.

          Your trolling is about as welcome here as ants at a picnic.

  4. Get Real says:

    Not as much BSC as your troll post here new username.

    So which of the existing username shill, shorter or hater are you?

    tftf, zzzzz, 4E?

    Anywaysort, keep shorting!

    1. Mystery says:

      Just Let Someone Answer the Question. Inquiring Minds want to Know. since when did Tesla sell 60% Intl 40% US.

      I guess commenters like you should disclose your stock ownership bias.

      There are only facts and the truth.

      That cash infusion didn’t come out of nowhere (or only US)

      1. zzzzzzzzzz says:

        It isn’t taught in middle school, so “Get Real” can’t know. Just believe into the grand vision and you will be happy, no questions needed. Don’t forget to buy more shares!

        1. Pushmi-Pullyu says:

          One anti-Tesla troll posting to support another. There goes the neighborhood!

      2. trackdaze says:

        2000pm of each selling per month in europe and 1000pm of each to china. the rest goes to australia,japan,sth africa……….

        it all adds up.

        1. Mystery says:

          I can believe the Europe. The China is very doubtful if you follow the real reports on the ground (similar to iPhone decline). The rest doubtful.

          They need to create factory production proof belief for capital raise etc, so fine but no way there is that much demand out there for S and quality plagued pricey X. Foreign investor infusion is no coincidence. marketwatch live blog (no one has the balls or brains to ask) just like No reporters dare question Google abt Fake News (and bite the hand that feeds them).

          All that matters is Model 3 production -to justify stock price, as that is all that really matters – Innovation for endless cash billions tech investor belief. Anyone who shorts Must have learned this by now – it’s been almost 5 years already.

          1. Nix says:

            ~8,000 deliveries to China and Hong Kong. You are wrong again. You are very bad at trolling.


            1. Mystery says:

              Thw article writer is clueless (grasping for pageviewa). Other article says – around 15% of sales (that would mean normally less than 4K) to China – demand to End Buyers mysteriously unknown (no registration data like tracked in US by insideEVs)
              “The latest first quarter data track imports, not end sales to buyers”.
              who bought 5% of Tesla cash infusion..
              Demand is demand, it’s probably just reciprocated like Dot.com days, until Model 3 production starts under loss-generating price point (but doesnt matter to stock price)

              1. Eduardo Pelegri-Llopart says:

                don’t feed the troll

                1. Jay Cole says:

                  Just as a note, with most of the data now in.

                  Tesla imported almost 3000 EVs in to China in December, almost 5,000 in Q1 (I mention the trailing month – Dec ahead of the quarter because if you look at the trailing JATO/registration data big import months are traditionally followed by larger delivery months). So we are penciling in 5,000 China deliveries (even though the numbers will still take a bit longer to get).

                  Hong Kong registered ~3,990 in Q1.
                  Europe had ~4550 registrations.
                  Canada had ~425 registrations through Jan/Feb – so lets say 800 thru March
                  Ballpark rest of world at ~500

                  Add those up? You get 14,840.

                  We estimated 10,400 for US in Q1 (see our historical US sales scorecard here)

                  Add those together and you get a cumulative figure of 25,240…and Tesla reported today a number of 25,051. (with admittedly some straggling data/clarity still needed to narrow it down further, and dot the Is, cross the Ts..but so far looking pretty good)

                  Now given we estimate the numbers the day after each month closes (Jan on Feb 2, Feb on Mar 3rd, March on April 3, etc); here we are, under full scrutiny with all the numbers just coming to light in May…I’d (IMHO) say we just about ‘hit the nail on the head’ for sales estimates. Again, even in this moment, with most of the data now in hand, we wouldn’t change our numbers (something we very infrequently do).

                  Are we always going to be so accurate? I’d say that is highly unlikely; but we do have a nice streak of 19 quarters in a row never being out more than ~650 units total in the absolute worst case (with an average margin of error around 200 units/quarter). So it’s not like we are just pulling numbers out of a hat, the statistical margin of error is incredibly low, so it pretty much bears out that our info/research into the numbers is robust.

                  1. Nix says:

                    thanks for the hard work, Jay.

                    1. Jay Cole says:

                      No problemo Nix, we certainly aren’t infallible, but we just grab all the information as it presents itself during the month – add it all up at month’s end, and put the numbers out.

                      I think the key when compiling the data for us has been to really not care at all what the consensus is, what Tesla’s estimates for a quarter are…or what people expect. We just put out the number we are seeing on the ground, and “it is what it is”.

                      Anyway, I know I have said this before, and for probably every month of the last ~19 quarters, but the “best day ever” really will be when Tesla starts to split out their numbers monthly in the US each month. Definitely will be then known as a national holiday at InsideEVs.

                      We spend an inordinate amount of time researching the number, then explaining it after the fact…especially for being such a tiny, tiny part/data point of a couple articles each month.

                  2. Kimmi says:

                    And that’s why IEVs is my favorite source for Tesla deliveries!

                    1. Jay Cole says:

                      Same goes for you Jose, and all your fine work on the global numbers at ev-sales.blogspot.com, (=

                    2. ffbj says:

                      I always get a kick out of seeing, references to charts, or articles from inside evs on other ev sites, as they use them as authoritative sources.
                      Praise from your fellow journalists is of the highest order.

                  3. JustWilliamPDX says:

                    Personally, I have always appreciated the effort that Inside EVs makes to make these estimates. The model certainly seems to be sound.


          2. Pushmi-Pullyu says:

            “Mystery” continued his FUD campaign:

            “Anyone who shorts Must have learned this by now – it’s been almost 5 years already.”

            I’m sure you’re quite familiar with the process of “shorting” Tesla stock. You wouldn’t be posting so much Tesla-hating B.S. if you didn’t feel a pretty strong pinch in your shorts. In fact, the way TSLA keeps shooting up, you’re getting a wedgie! 😀

      3. Gasbag says:

        > Just Let Someone Answer the Question. Inquiring Minds want to Know. since when did Tesla sell 60% Intl 40% US.

        Since forever. Look at the monthly US numbers Jay has meticulously compiled for 2016 for you to misinterpret. You’ll notice the sales for the first month of each quarter are significantly less than the prior month so much so that that about 60% of all sales are in the last month of the quarter, 25% in the second month of the quarter, and about 15% in the first quarter. Manufacturing doesn’t yo-yo like that. They are just shipping disproportionate shares of the first month’s production overseas. They do this to allow foreign shipments more time to reach their destination and still allow the revenue to be recognized within the same quarter. This is why every 3 months desperately seekingalpha replays their headline “Tesla sales slump drastically”…….and yet their annual sales continue to rise.

        So the coast is clear. You and yourself (zzzzzzzz) can come out from under the bed and remove your tinfoil hats.

      4. Pushmi-Pullyu says:

        Mystery said:

        “There are only facts and the truth.”

        Your posts certainly contain no Truth.

        As they say, “Figure don’t lie, but liars figure.”

        I don’t personally know what vagaries may have resulted in Tesla shipping either more or fewer units overseas last quarter than they did in a previous quarter, nor do I care. What I do know is that in the real world, various factors can affect this.

        I also know that anti-Tesla FUDsters have made a habit, over the years, of citing such numbers to dishonestly insinuate that Tesla is hiding something, and they keep doing that no matter how often it has proven to be without any truth whatsoever.

        But it’s you who is hiding something, aren’t you “Mystery”? If you’re gonna keep posting groundless accusations about Tesla, then you need to disclose your TSLA “short” or “puts” investment position.

        Not much of a mystery there!

        1. Mystery says:

          If you believe that all those China & Hong Kong deliwveries were to legitimate end-users, then you must be smoking something. Have you wver even been to Asia? naivete
          To Your earlier comment –
          Alternative facts like Putin not being somehow responsible for 40+ Mysterious russian adversary deaths, or NSA spying on you. Thought Nov election would have brought some real world sense.
          Unlike you who apparently is heavily biased and own TSLA stock so have super ulterior motive, there is no shorting here (if you can understand the comment about Shorters should have learned by now, its been 5 years of proof that all that matters is innovation so make the Model 3 just so it doesnt fall apart, or encounter Boeing 787 3-year delay)

          1. Nix says:

            See Jay’s post. Your bunk has been debunked.

          2. ffbj says:

            In answer to your first two part question:
            Yes and Yes!

  5. James says:

    I don’t really care about the “luxury” of a Model S or X. Don’t get me wrong, I’d take one if someone gave it to me, but Model 3 is more than enough car for me, and I’m mostly interested in full self driving than luxury. Really look forward to road trips where I can mostly relax and enjoy the scenery. This could mean a renaissance for lost roadside towns:)

  6. Get Real says:

    Well, why don’t you call the SEC to report fraud?

    That’s right, your just another desperate shorter losing your money!

    1. Get, to who are you responding? You comment is out in the open, as directed at the article, or its author! If you are responding to someone, hit the ‘reply’ link first, so we know who you razzing!

      1. Nix says:

        Robert — The post count doesn’t match the actual number of posts. That indicates active moderation. Enough said. Let’s not derail the conversation. That’s the point of moderation in the first place.

      2. Pushmi-Pullyu says:

        To be fair to Get Real, I am guilty of sometimes mistakenly using the “Leave a reply” box at the bottom of the comment thread, when I meant to click the “Reply to” link.

        In fact, I’m embarrassed about how often I make that mistake. So I would gently ask that we cut Get Real some slack. Likely he meant to reply to one of the several anti-Tesla troll comments here, and not directly to the article.

  7. Get Real says:

    Excellent, zzzz shows up to defend the troll.

    It was probably you all along you loser.

    1. ¯\_(ツ)_/¯ sven says:

      Get Real needs to Get A Life.

  8. Get Real says:

    And sven shows up to join in with his fellow anti-Tesla trolls, zzzz and this new username mystery-man.

  9. pjwood1 says:

    Any AP discussion in Q and A?

    1. Jay Cole says:

      Have not heard anything, but I confess to having a “wee bit” of a HUGE headache, so maybe I lost consciousness there for a minute.

      Sidenote: Call is still freaking going, we are 1:15 into it now. Definitely a new record.

  10. Doggydogworld says:

    Minor correction, they are discontinuing door-to-door sales, not “discounting” them.

    At first glance this is a really solid quarter. That said, Model 3 is clearly cannibalizing Model S and X sales, at least in the US.

    1. Jay Cole says:

      Thanks DDW,

      Yes that should read “discontinuing” not “discounting”, fixed!

      1. David S. says:

        “discountinguing” is not exactly it, either. ha ha

        1. Jay Cole says:

          we are going to get there, (=

  11. Pushmi-Pullyu says:

    Wow, talk about a data dump! Thanks muchly, Jay!

    Two things I’ve been predicting are confirmed, or at least seem to be, here:

    •The Model 3 will never exceed the Model S for range. That was IMHO a no-brainer. Tesla isn’t going to intentionally “Osborne” the Model S (or Model X, either) by giving the M3 a longer range!

    •Tesla will continue to avoid using traditional dealerships. One reason some analysts have predicted that Tesla will be forced to move to the traditional dealership model is because they say Tesla stores can’t handle the high volume of deliveries required by the Model 3. Contrariwise, Tesla here talks about using regional “delivery centers” to cope with that situation, again avoiding the dead weight of the “middleman” of the dealership.

    Lots of other things to discuss, but that’s enough for one post.

  12. Kdawg says:

    “Delivery hubs” sounds like “dealerships”

    1. Pushmi-Pullyu says:

      Presumably they will have one of the functions of a dealership, but without acting as a wholesaler “middleman” driving up the price between manufacturer and retail customer.

      1. Kdawg says:

        What happens when they combing a “Tesla gallery” with a “delivery hub”? Throw in a service center, and you essentially have a full-blown dealership.

        1. ffbj says:

          Yeah, just toss in a coffee pot with some stale coffee in it, and there you go. Oh and ‘true coat’, you gotta get that ‘true coat’:

    2. unlucky says:

      Except dealerships are franchised while these would be owned and operated by Tesla. Tesla wants to control the whole system top to bottom and keeping ownership of the dealerships or hubs (by any name) does that.

    3. ItsNotAboutTheMoney says:

      It’s one function of a dealership. But if really a space for delivery, it doesn’t need all the stuff that monolithic dealerships have. It’d be a much simpler set-up.

  13. Four Electrics says:

    The lesson of Tesla remains: you can accomplish more than everyone else if you’re willing to lose more money than everyone else: $3.5 billion, to be exact. That’s $20K per car ever sold. Throw in an extra $20K to any car and you get a lot of nice stuff. And that doesn’t even count cash spent on capitalized investments like the Gigafactory and fancy Fremont tooling. Spend it if you got it, and you’ll look like a visionary. It’s better to be rich than good.

    1. Nix says:

      Not that ignorant meme yet again. Yes, they are negative on cash flow.

      But they have also built $9 billion in just Fixed Assets (out of $23 billion in total assets). That’s around $50K per car ever sold based on your math. So those negative cash flow losses and other liabilities are offset by even larger Assets.

      Yes, they have gone negative on cash flow, but they have built even more Assets (Wealth) than they have gone negative on earnings.

      1. Get Real says:

        It’s called prioritizing long-term growth over short-term profits which is all the leeches like 4E understand.

    2. Mystery says:

      Finally someone sensible, not a stock greaser, understands the point. Thats why Musk is on Trump biz council, must be due to SpaceX. There is a method to the madness, just as there was Dot.com. There is a fine line between dirtiness, tricks, shadiness, and the truth. if thats not known since Nov, people should live in make-believe-fairyland. Dont make Tesla or Musk into a green treehugger angel (unionization, disregard for initial fatal china autopilot death (boom into that concrete barrier), etc.). Speaking of fantasyland, the Boring company is a gigantic distraction that makes no sense here under Earthquake-wary Los Angeles (unless you want to be buried alive). But the blind mice eat it up.

      1. William says:

        It’s hardly Boring, for us distracted tunnel visionary LA blind mice, to be buried alive, here in LA. There is always lots to eat up at fantasyland and make believe-fairyland.

        As for those pesky temblors, were still working on that subway to the sea. We’ll chew our way there, before the next big one hits! With or without Musk, of course!

      2. Get Real says:

        LMFAO, “Mystery” man is getting desperate as his shorts squeeze his lack of nuts as all the pieces for Tesla are falling into place to become the absolute dominant manufacturer of compelling EVs which will become the future of transportation.

        If you have any doubts as to what kind of disruption Musk is capable of all you have to do is look at what Space X has done to the formerly behemoths of aerospace like McDonnell Douglas and Boeing who were ripping off the taxpayers for 40 years with their overpriced rockets.

      3. Nix says:

        obvious troll is obvious

  14. Mister G says:

    WOW tesla will be creating many American jobs, I hope many fossil fuel jobs transition to Tesla jobs. GO TESLA GO

  15. Don Zenga says:

    It will be good if Tesla reduces the money spent on designing a whole new vehicle like Semi (18 wheeler) and reduce the loss. What is more important for the company is to show profit and bring the Model-3 to production. But its good that they have increased their revenues on YoY basis.