Tesla Model Y Due Early 2020 As A "Manufacturing Revolution"

Doug Carpenter
May 3, 2018

"I'm pretty excited about how we're designing Model Y. It's really taking a lot of lessons learned from Model 3 and saying how do we design something to be easy to manufacture instead of how to manufacture or hard, really", Musk said.

Tesla reported a record loss of $709.6 million (roughly Rs. 4,700 crores), or $4.19 (roughly Rs. 280) per share, for the first quarter ended March 31, compared with a loss of $330.3 million, or $2.04 per share, a year earlier.

He clarified that it certainly won't be assembled at the plant in Fremont since there's no free production capacity available, saying the factory is "crazy packed" and "jammed to the gills" at the moment.

The matter of Tesla's cash position continues to be an issue of debate, as some on Wall Street have speculated that the company could run out of money before it sees significant sales help from the Model 3. However, Q1 2018 also saw Tesla's costs rocket to new heights, resulting in the company's biggest loss ever of $784.6 million.

The company is burning cash but Musk didn't want to talk about it.

And when another analyst, Joseph Spak, of RBC, asked him about the next step for the new more reasonably priced Model 3 electric auto, there was a 14-second pause.

Profits should start appearing in the second half of the year. "Thanks for the great questions", Musk said after fielding queries on issues including Model Y production and plans for a self-driving vehicle network. The company expects production numbers to stay around the same level for Q2 2018 but said it aims to ramp up production in Q3 2018 to meet its avowed target of 100,000 deliveries by the end of 2018.

"Yes, excessive automation at Tesla was a mistake. We're going to scrub the barnacles on that front".

"Machines are not good at picking up pieces of fluff", Musk said.

Automotive revenue rose only 1 percent from the prior quarter to $2.74 billion (roughly Rs. 18,300 crores). "Humans are underrated", Musk tweeted last month. A secret picture (presented above) was discharged later that year in June, and now we at long last know when it will be propelled: mid-2020.

During the quarter the company burned cash at a rate of $57 million per week.

Musk is known for his quirks, but investors appeared to be put off. Tesla shares were down almost 5% during after-hours trading, despite posting better-than-expected earnings results.

Musk's update on Tesla's next Gigafactory in China was in line with his statements back in February during the Q4 2017 earnings call. At one point it had more than 500,000 potential buyers on a waiting list.

Net reservations, including configured orders that had not been delivered, "continued to exceed 450,000" at the end of the first quarter, the company said.

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