Update from Elon (10/3/12), Clearing up things

[RobotGrease]

http://www.teslamotors.com/blog/update-elon-musk

Things are looking great!

- - - Updated - - -

Highlights:
-over 250 cars delivered in last quarter (beating estimate from SEC filing)
-production rate was roughly 100 in last week of September
-expect to be cash flow positive at the end of next month
-Second offering WAS really for cushion, dont plan on spending it until new vehicle dev.
-everything with the DOE is just dandy!

 

[ckessel]

Indeed, that is chock full of positive news. I love that Elon writes much as he talks. His wording, pacing, etc all comes cross just as he speaks (albeit with less "ums"). My mind mentally hears his South African lilt as I read the words.

 

[Beavis]

JP will not be please but I love it!

 

[dsm363]

Good news. Things appear to be moving along well.

 

[AnOutsider]

Love it. 500 bodies eh? Almost there

 

[Krugerrand]

Well, if that wasn't a slap upside the head to the critics, fabricators and the rest of the naysayers.

 

[Lyon]

I love the bit at the end about WHY they're doing early repayment! It makes sense. Moreover, it makes WAY more sense than assuming that the early repayment request was the gov't was worried about Tesla.

 

[Johan]

This is so clear and to the point. Great! Love this sentence: "I don't know how to state this more clearly". Classic!

 

[Doug_G]

It does sound like the production rate is ramping up pretty quickly. I hope their delivery team is ramping up just as fast!

 

[mitch672]

It does sound like the production rate is ramping up pretty quickly. I hope their delivery team is ramping up just as fast!

When I met GeorgeB at the Natick, MA store opening he said the cars are leaving 3 ways:

parked outside for pickup by a car carrier: 6 or 8 per truck. they do not even spend overnight at the plant, they go out the same day.

local delivery: a delivery specialist loads a Model S onto the trailer and delivers it to the owner.

factory pickup: the owners come to the plant and drive the car away

he said its very impressive how fast the cars are moving out of the plant I asked him the quesition as things need to speed up, if I am going to get delivery of Reservation # P10010 sometime next year, Its also good for all of us long on TSLA

 

[STxTesla]

I feel sorry for the poor bastards that are shorting Tesla stock. Well, not really.

 

[sublimaze1]

So this announcement is exactly unlike what I thought was actually going on and, as such, I was a victim of getting sucked into the vortex that is: journalism. I will no longer believe the internet. Unless it is this forum. Or The Weekly World News.

 

[Krugerrand]

So this announcement is exactly unlike what I thought was actually going on and, as such, I was a victim of getting sucked into the vortex that is: journalism. I will no longer believe the internet. Unless it is this forum. Or The Weekly World News.

Don't listen to Romney either. He says Tesla is a loser.

 

[AustinPowers]

Don't listen to Romney either. He says Tesla is a loser.

Perhaps he was talking about himself and just got confused with the names. Wouldn't be the first time... :wink:

 

[ItsNotAboutTheMoney]

The message was positive, but remember that he's trying to get people to buy his product.

I'll feel a lot less nervous if/once Tesla makes it to 200 cars per week, since that'd reduce the losses and give them more time.

 

[VolkerP]

I'll feel a lot less nervous if/once Tesla makes it to 200 cars per week, since that'd reduce the losses and give them more time.

EM stated at the annual stockholders meeting 6/6/12 that the Model S program would be profitable with 8000 units sold per year. 200 cars per week would be 25% above that, so a fine point to reach. We all want Tesla to exceed 400 cars per week to generate cash for Gen III R&D, expanding the stores/service centers, and the supercharger network. So I keep my fingers crossed for that.

 

[Zzzz...]

The message was positive, but remember that he's trying to get people to buy his product.

I'll feel a lot less nervous if/once Tesla makes it to 200 cars per week, since that'd reduce the losses and give them more time.

TM was aiming for more then 400 cars per week. They should be able to reach at least 300 per week. And then they would have real fun trying to get that last extra 100. Many suppliers would have to get to their maximum planned capacity, and do it in the same time frame as TM, to allow Tesla reach their max production rate. Tesla was helping at least some suppliers to retool/expand their factories.

As a result of investments we continued to make in the Tesla Factory and supplier tooling for Model S production, capital expenditures increased to $61.3 million for the three months ended June 30, 2012

Besides, during conference call Musk made a remark that CAPEX was somewhat low, and they were hoping for bigger one for that quarter.

 

[srram]

An update from Elon (10/3)

An Update from Elon Musk | Blog | Tesla Motors

highlights:

- We expect Tesla to become cash flow positive at the end of next month.
- I am pleased to report that we completed production of 359 vehicles last quarter (delivering over 250 of those to customers) and have already made our 500th vehicle body
- We did not need the money, this was about thinking long term
- Tesla has never asked for or even hinted at postponing repayment of the loan.
- Repaying DOE loan early

So much for people who said Tesla is running out of money. Go Tesla !

 

[tdelta1000]

That's great! Any progress is better than no progress.

 

[rolosrevenge]

Don't listen to Romney either. He says Tesla is a loser.

Do you have a source for that claim?