Tesla Reports Disappointing Revenue, CTO Departure

Tesla announced disappointing revenue figures and shocking news that its longtime head of technology, JB Strauble, is leaving the company.

The news sent Tesla shares into their steepest dive since 2013.

Chief Executive Elon Musk, speaking on a conference call to discuss quarterly results, revealed that Straubel will step down as chief technology officer, but continue to be an advisor to Tesla.

“I’m not disappearing, and I just wanted to make sure that people understand that this was not some, you know, lack of confidence in the company or the team or anything like that,” Straubel said on the call.

Straubel will be replaced by Drew Baglino, a vice president of technology at the company.

In regards to production, Tesla said it has a weekly run-rate of 7,000 units of the Model 3, with a goal of 10,000 Model 3s each week by the end of 2019. But, the company continues to struggle with profitability.

In the second quarter, Tesla lost $1.12 per share on an adjusted basis, compared to the average analyst estimate of 40 cents. Gross margin fell to 14.5% from 15.5% a year ago.

Revenue jumped 59% to $6.35 billion, but missed average analyst estimates of $6.41 billion.

Tesla held to the guidance it issued earlier, saying it will sell 360,000 to 400,000 vehicles this year. An effort to just hit the low end of that range will require Tesla to deliver 200,000 vehicles in the second half of the year.

Read Tesla’s full update here.

 

[mjmiron]

This is the start of issues for Tesla if they don't take care of customers experience a reduction in the capacity of the battery and slowing charging speed they induced with the most recent software update. If you have an older S or X and are experiencing a reduction in battery capacity I.E. lost significant range overnight with last update and slowing charging speed follow this thread.

Sudden Loss Of Range With 2019.16.x Software
Sudden Loss Of Range With 2019.16.x Software

 

[nowtleft]

This headline is the antithesis of what was actually said and yet more alarmist rubbish.
Stay long stay strong - Tesla is disrupting all other car manufacturers and could even spell the end of Ford, BMW, VW etc if they can't catch up. Currently they cant keep up never mind catch up!
$6billion cash, new factory about to start in CHina, massive order book - those should be the headline not this crap!

 

[DTTS]

Well, to say at the least, this is VERY VERY VERY disappointing! ‘Revenue jumped $6.35 billion, but missed average analyst estimates of $6.41 billion.’ This MUST be at least a Chapter 11. 0,07billion less than expected!! There are days my children do not earn that much.
By the way, as a M3 driver, I now call up on every Tesla driver to return to ICE asap. ICE is much better for the environment, even if you only drive 1000miles a year. And besides that, the chained children, connecting Tesla parts with Ducttape in leaking Tesla production tents (without heating if it is cold and without airco if it is hot) will be freed to play outside again (where temperatures are always good).

O, and I allmost forgot, the roads won’t get damaged anymore by the Teslas. And, let us not forget, the end of the fine-dust pollution, caused for 87% by Teslas breaking. 13% comes from other Tesla sources.
To be honost, I tried to travel around in Europe, but it was a disappointing experience, with charging every 15 minutes (if there would have been free chargers, always occupied). So I had to stay for over two weeks at one supercharger location, and then it was out of current!!
I could go one for hours, but I have to get myself an ICE before they are sold out.

 

[IsthataTesl.a?]

Well, to say at the least, this is VERY VERY VERY disappointing! ‘Revenue jumped $6.35 billion, but missed average analyst estimates of $6.41 billion.’ This MUST be at least a Chapter 11. 0,07billion less than expected!! There are days my children do not earn that much.
By the way, as a M3 driver, I now call up on every Tesla driver to return to ICE asap. ICE is much better for the environment, even if you only drive 1000miles a year. And besides that, the chained children, connecting Tesla parts with Ducttape in leaking Tesla production tents (without heating if it is cold and without airco if it is hot) will be freed to play outside again (where temperatures are always good).

O, and I allmost forgot, the roads won’t get damaged anymore by the Teslas. And, let us not forget, the end of the fine-dust pollution, caused for 87% by Teslas breaking. 13% comes from other Tesla sources.
To be honost, I tried to travel around in Europe, but it was a disappointing experience, with charging every 15 minutes (if there would have been free chargers, always occupied). So I had to stay for over two weeks at one supercharger location, and then it was out of current!!
I could go one for hours, but I have to get myself an ICE before they are sold out.

Please, don't go on for hours.

I did my best trying to follow what on earth your point was but, sadly, I failed .

 

[mspohr]

I don't know why any rational person expects Tesla to be profitable at this point. They are investing everything in new factories and new models. The only thing I would worry about would be cash on hand to invest and they just reached a new high for this number. As long as they have a good margin on sales (currently greater than other auto companies) and can sell every car they make (which they have done from day one), they will continue to be successful.

 

[Ostrichsak]

I don't know why any rational person expects Tesla to be profitable at this point. They are investing everything in new factories and new models. The only thing I would worry about would be cash on hand to invest and they just reached a new high for this number. As long as they have a good margin on sales (currently greater than other auto companies) and can sell every car they make (which they have done from day one), they will continue to be successful.

Looks like you forgot about good customer service... Just like Tesla did.

 

[mspohr]

Looks like you forgot about good customer service... Just like Tesla did.

I've always had incredibly great customer service.
Some people feel they haven't had great customer service and they complain loudly. All of this is anecdotal and irrelevant.
I'd look to a survey such as Consumer Reports which reports Tesla has the highest rating for customer satisfaction on any automaker.

 

[Magellan55]

Losing JB is more worrisome to me than the big loss this quarter. He's been the heart and soul of the powertrain and battery tech - what makes Tesla a decade ahead of everyone else.

 

[M3BlueGeorgia]

Only Wall St was disappointed, which really means Tesla do a poor job of subtly setting expectations.

 

[mspohr]

Only Wall St was disappointed, which really means Tesla do a poor job of subtly setting expectations.

Wall St. sets expectations which ensure that Tesla will fail. Nothing subtle about it.

 

[LTC_RRR]

Please, don't go on for hours.

I did my best trying to follow what on earth your point was but, sadly, I failed .

Might it possibly be SATIRE?

 

[VifferFun]

I've always had incredibly great customer service.
Some people feel they haven't had great customer service and they complain loudly. All of this is anecdotal and irrelevant.
I'd look to a survey such as Consumer Reports which reports Tesla has the highest rating for customer satisfaction on any automaker.

Customer satisfaction isn’t the same as customer service. My neighbour has owned a P85DL four years and is an extremely satisfied customer because he absolutely loves the car itself; however, he recognizes that their customer service is terrible. I’ll be buying his car in two weeks so that he can get the new P100DL

The service of the online Tesla store is atrocious. I emailed a question four weeks ago (since there’s no phone number) and have yet to receive a response. Two weeks ago I received a hardwire wall connector instead of the NEMA 14-50 wall connector that I ordered — I emailed them immediately and still have no response two weeks later. If this isn’t terrible customer service then I don’t know what could be worse?

With all that said, I’m willing to overlook the terrible customer service with the understanding that Tesla is going through some growing pains. My hope is that I’ll still be an extremely satisfied customer due to the car itself

 

[M3BlueGeorgia]

Customer satisfaction isn’t the same as customer service. My neighbour has owned a P85DL four years and is an extremely satisfied customer because he absolutely loves the car itself; however, he recognizes that their customer service is terrible. I’ll be buying his car in two weeks so that he can get the new P100DL

The service of the online Tesla store is atrocious. I emailed a question four weeks ago (since there’s no phone number) and have yet to receive a response. Two weeks ago I received a hardwire wall connector instead of the NEMA 14-50 wall connector that I ordered — I emailed them immediately and still have no response two weeks later. If this isn’t terrible customer service then I don’t know what could be worse?

With all that said, I’m willing to overlook the terrible customer service with the understanding that Tesla is going through some growing pains. My hope is that I’ll still be an extremely satisfied customer due to the car itself

If they sent you the wrong item, and you've obviously tried to contact them to resolve it, do a chargeback on the credit card.

 

[VifferFun]

If they sent you the wrong item, and you've obviously tried to contact them to resolve it, do a chargeback on the credit card.

That was a thought; however, wouldn't that show up as an unpaid invoice that could impact my credit rating? I'm not sure that I want to risk that :S

 

[M3BlueGeorgia]

That was a thought; however, wouldn't that show up as an unpaid invoice that could impact my credit rating? I'm not sure that I want to risk that :S

They sent you something you didn't order, so they can't (under Federal law) invoice you for it. No worries.
That law was passed in the 1960s because companies were sending stuff to people they didn't order, and then demanding payment.

If Tesla contact you, just ask them for a prepaid shipping label to send it back to them. You aren't actually required to send it back, although its polite to do so. However, it shouldn't be on your dime.

 

[VifferFun]

They sent you something you didn't order, so they can't (under Federal law) invoice you for it. No worries.
That law was passed in the 1960s because companies were sending stuff to people they didn't order, and then demanding payment.

If Tesla contact you, just ask them for a prepaid shipping label to send it back to them. You aren't actually required to send it back, although its polite to do so. However, it shouldn't be on your dime.

Thanks! I presume that Canada would have a similar federal law I'm guessing that if I do a chargeback on my credit card then Tesla might finally talk to me to resolve this

Since I didn't receive a response from Tesla, I already had the electrician scheduled, and I didn't want to delay with the wall connector, I ended up installing the hardwired wall connector that Tesla incorrectly sent me (on a 60A feed) and also installing a separate NEMA 14-50 (on a 50A circuit) as "insurance" in case the wall connector ever fails. The "insurance" is why I wanted the NEMA 14-50 wall connector in the first place. I now have a better solution than I originally planned on, but it cost me an extra $400 or so in electrical work. I'd like to discuss this with Tesla to come to a mutually-beneficial agreement (e.g. they could provide me with an incentive for using their incorrect part and saving them the shipping) but unfortunately there's no human to talk to