Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Fourth Quarter 2013 Financial Results Q&A Conference Call - LIVE BLOG

This site may earn commission on affiliate links.
Dan Galves: Comment on 1000/week together with EU and Asia could be double US deliveries. If you take 12k units/quarter, 4, 4 and 4 between the markets?

Elon: Difficult to predict sales between markets. Best fidelity is that non-North American sales will be roughly 2X North American sales. We are trying to balance customer wait times. We did quite a few EU deliveries and slowed down US deliveries to make people as happy as possible.

DG: China charging. What's your view? People are mostly charging at home in the US. Is that viable for the Chinese consumer living in an apartment.

Elon: We've got some good solutions. WE'll talk more about that in the coming months.
 
Elon: We are constructing a new line in the factory. The full answer is a little complex. Some are production constrained. Some are not. To get to the 1000 rate, we do need a new "final assembly" line which we are constructing. Shift over at the end of the 3rd Quarter.

I was wondering about that. When we had the tour at TESLIVE last year, some parts of the production facility were looking a little crowded. Makes a lot of sense.
 
Patrick Archambau: OP EX. Is there still some ability to leverage? Or is investment cost offsettting fixed cost?

Depak: We are mindful of OPEX. We continue to be frugal, but will continue to invest. Not ready to give long-term guidance. We are trying to bring out OPEX down in the long-term.

PA: Did you give the US/Intl split?

Depak: No. We haven't done that in the past. [HOLD on mute . . . lol]. Most of the growth in q4 came in EU, US was steady. Increment went to Europe.

PA: Sounds like your expectations for the X are higher than we thought. How can we think about accretion of that platform? Presumably you've learned things and your supplier has learned things. . . tailwind?

Elon: Not sure I understand the question.

PA: You've learned a lot with X. Is there a margin tailwind just from what you've learned from the S?

Elon: Gross margins higher with the X? There could be . . . but we do expect the option take rate to reduce over time. If the option take-rate doesn't reduce then 28% margins will be higher.

PA: is there some kind of mix tailwind from the X launch from what you've learned in your supplier relationships?

Elon: Yes, but we don't want to predict any better than 28% margins.

- - - Updated - - -

Cullen Rush: Tac time? How do you see two shifts playing out and hiring?

Depak: Just to clarify. We are currently running two shifts. Different shops run on different times. We will continue to improve efficiency as we ramp up during the 2nd half of the year. No single tac time to report.

CR: We will be able to improve our labor efficiency over the course of the year.

CR: Trim line

Depak: Q4 to Q1, we are ramping up to EU and China. We could have delivered more to the US to increase profitability, but we didn't. That's why you'll see deliveries drop in Q1.

- - - Updated - - -

Cullen Rush: Tac time? How do you see two shifts playing out and hiring?

Depak: Just to clarify. We are currently running two shifts. Different shops run on different times. We will continue to improve efficiency as we ramp up during the 2nd half of the year. No single tac time to report.

CR: We will be able to improve our labor efficiency over the course of the year.

CR: Trim line

Depak: Q4 to Q1, we are ramping up to EU and China. We could have delivered more to the US to increase profitability, but we didn't. That's why you'll see deliveries drop in Q1.

- - - Updated - - -

Elon: HOpefully other manufacturers will adjust their practices not to gouge Chinese consumers. But not sure that they will. We are seeing VERY STRONG demand since we announced pricing. Our bigger challenge will be filling demand.

Q: Should we expect MS improvements in the future.

Elon: Don't want to comment on future Model S changes. We add features every month on a continuous basis.

- - - Updated - - -

John Albertine: Will any construction at the factory be for the GEN III?

Elon: We will learn from those lines, but the GEN III will have its own lines. It will be geared to a higher volume. We do anticipate producing GEN III in Fremont. When it was owned by GM/Toyota it was producing 500,000 vehicles per year.

JA: Has there been a shift to focus on the Gigafactory?

Elon: GF is there to support GENIII. Happening in parallel with the developoment of the GENIII. Part of one combined effort.

JA: No movement on 2017 launch?

Elon: No
 
Craig Erwin Wedbush: Can you clarify something you saiid on the last call: lower environmental footprint to battery production? Solvent free or advanced recovery systems?

Elon: Current LI production is not bad. Panasonic factories in Japan are SUPER clean and have no waste. But we can take it a step further and heavy power by solar and wind + recycling of old pack. Look at the whole life cycle and be in the best possible situation from an environmental impact. Pack recycling is happening in Belgium and Vancouver. Not like they are sent to a landfill.

CI: ASP has been turning positive. You seem to be conservative. Do you expect the sequential increases or flattening?

Elon: Definitely flattening or slightly reducing, within a standard of 2(?) Prudent thing to assume to a reduction in the option take rate as we get into a mainstream market. We are trying to be conservative. But we want to protect the scenario where it is.

DONE!