Tesla’s first-quarter financial results disappointed many analysts today. The automaker reported a GAAP net loss of $702 million amid a record drop in deliveries. But Tesla’s financial woes weren’t the only news we heard today. Read on for six other interesting tidbits we gleaned from the quarterly earnings call.
New Model S and X powertrain cuts costs
We knew that the new front motor in the Model S and Model X improved range and performance, but Tesla CEO Elon Musk revealed that adapting the rear drive units of the Model 3 to work in the front of the S and X also reduced costs. This makes a lot of sense if you think about it. Sharing components simplifies and streamlines parts production, and using one common drive unit in three products (or four when Model Y arrives) should yield savings. And as a bonus, the new Model S has a range of 370 miles. If you haven’t read it yet, check out our exclusive story where we drive the updated Model S from the Bay Area to L.A. on a single charge.
There’s a new timeline for Tesla Semi production
When Tesla first revealed the Semi in November 2017, we learned that production was planned to start in 2019. Now, Musk says the automaker expects to begin production next year in 2020. A Tesla official on the call said the location for Semi production was “not yet set,” but followed that up by saying, “It’s pretty clear that we make all the batteries and drive units in [Northern Nevada].”
Tesla is rolling out a new “insurance product”
Without going into too much detail, Musk said Tesla will introduce a new “insurance product” in about a month. We don’t know exactly what this is about, but as Business Insider points out, Tesla owners often face high insurance costs. This is because it can be somewhat more difficult to find replacement parts and qualified body shops. Will the new insurance offering have something to do with Tesla’s plan to deploy 1 million robo-taxis by 2020? We’ll have to wait and see.
“Ship has sailed” on taking Tesla private
“I would prefer we were private, but unfortunately I think the ship, that ship, has sailed,” Musk said. If you recall, Musk previously tweeted that he was considering taking Tesla private, suggesting that funding was secured. This snowballed into a battle with the SEC that ultimately led to Musk agreeing to step down as Tesla chairman, though he remains CEO of the company.
Model Y could enter production in Fremont after all
Previously, Musk said that Tesla wouldn’t produce Model Y in Fremont because the location was already “jammed to the gills.” Now, we’re learning that the small crossover may enter production there after all, or in Nevada. Tesla remains undecided, saying it’s a “tough call.” Expect a decision soon, though.
Musk doesn’t completely hate the idea of raising capital
In the past, Musk has been vehemently opposed to the idea of raising capital. But in today’s earnings call, he said the idea of raising new funds at this point has merit. “This is probably about the right timing,” he said. But he didn’t give any indication that this was actually happening right now, and he also stressed that outside funding shouldn’t be a substitute for financial discipline.
The post 6 Things We Learned From Tesla’s Q1 2019 Earnings Call appeared first on Motortrend.
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