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Toni Sacchonachi (ugh): Question manages to spin opex control negatively. (Responses say nothing new.) Manages to suggest that gross margin is only because ASP is high.
(My comment: What a jackass.)
Elon says "the problem with asking questions like this in detail is that it's a rapidly changing situation; literally if you asked in another month it would be different."
Says the targeted COGS for the $35K model 3 is $30K. Deepak says it's a matter of time, points out fewer cells, non-cell pack cost-reduced, and general reductions in auto manufacturing costs, and "same factors that have helped us so far". (My comment: Slick response to jerk question.)
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James Albertine with Consumer Edge:
Where are logistics costs? They're mostly in automotive gross margin. Debt interest is on interest expense line, though. Musk thinks ABL interest belongs in COGS, Deepak agrees conceptually. (My comment: a new aspect of non-GAAP?)
Asks about service&other gross margin and battery costs.
Service&other will improve every quarter, Musk expects it to be a positive margin contributor, Deepak says more after warranty expires, says used car sales have good margin, points out service is the profit center for other car dealers.
Battery costs are a trade secret. "Much better than anyone else by a lot".
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LeBeau, CNBC: (stupid question about the US tax credit) It will not slow down sales, at least not below 5000/week.
We are not holding the lower-cost version of the car back intentionally. The lemur was created to provide the end customer with the most affordable car they can produce now. The smaller pack will take at least 3 months, and longer to spool up, longer to manufacture, longer to deliver, so probably customers see it in March or February.
Comments on Tesla having best $/kwh and best mi/kwh, which gives them an advantage which it is very hard for competitors to match. "I really encourage our competitors to make a huge investment, I've said this for a long time,"
"we want to be as helpful as possible to the rest of the industry"...
"they can use our superchargers if they make an adapter"...
Says the other companies just didn't invest, and that's what has put Tesla in such a strong competitive position. (My comment: that's what I've been saying!!!)
Deepak repeats the thank you and reiterates the mission: to accelerate the world transition to sustainable energy.
Musk says he's looking forward to the next call.
Toni Sacchonachi (ugh): Question manages to spin opex control negatively. (Responses say nothing new.) Manages to suggest that gross margin is only because ASP is high.
(My comment: What a jackass.)
Elon says "the problem with asking questions like this in detail is that it's a rapidly changing situation; literally if you asked in another month it would be different."
Says the targeted COGS for the $35K model 3 is $30K. Deepak says it's a matter of time, points out fewer cells, non-cell pack cost-reduced, and general reductions in auto manufacturing costs, and "same factors that have helped us so far". (My comment: Slick response to jerk question.)
----
James Albertine with Consumer Edge:
Where are logistics costs? They're mostly in automotive gross margin. Debt interest is on interest expense line, though. Musk thinks ABL interest belongs in COGS, Deepak agrees conceptually. (My comment: a new aspect of non-GAAP?)
Asks about service&other gross margin and battery costs.
Service&other will improve every quarter, Musk expects it to be a positive margin contributor, Deepak says more after warranty expires, says used car sales have good margin, points out service is the profit center for other car dealers.
Battery costs are a trade secret. "Much better than anyone else by a lot".
----
LeBeau, CNBC: (stupid question about the US tax credit) It will not slow down sales, at least not below 5000/week.
We are not holding the lower-cost version of the car back intentionally. The lemur was created to provide the end customer with the most affordable car they can produce now. The smaller pack will take at least 3 months, and longer to spool up, longer to manufacture, longer to deliver, so probably customers see it in March or February.
Comments on Tesla having best $/kwh and best mi/kwh, which gives them an advantage which it is very hard for competitors to match. "I really encourage our competitors to make a huge investment, I've said this for a long time,"
"we want to be as helpful as possible to the rest of the industry"...
"they can use our superchargers if they make an adapter"...
Says the other companies just didn't invest, and that's what has put Tesla in such a strong competitive position. (My comment: that's what I've been saying!!!)
Deepak repeats the thank you and reiterates the mission: to accelerate the world transition to sustainable energy.
Musk says he's looking forward to the next call.