Tesla sales up 70% in Q2; CEO Musk hints at $35K model with 200-mile range

[wtmusic]

"Finally, we know the number. Tesla Motors announced today that it sold 5,150 Model S electric vehicles in North America last quarter. Divide by three and you see that the California company sold around 1,700 cars a month, which puts it right up there with the current plug-in vehicle champions, the Nissan Leaf and the Chevy Volt. That's despite the fact that the cheapest Model S, which starts at $69,900 but often sells for a lot more with better options, costs at least twice as much as the sales leaders. Tesla said it was making "almost 500 vehicles per week" in the second quarter of this year.

The sales contributed to an overall increase in net income (non-GAAP) of 70 percent compared to the first quarter, up to $26 million. Tesla said it achieved a gross margin of 22 percent (non-GAAP), "despite significant reduction in ZEV credits" (which was no surprise) and should hit 25 percent by the fourth quarter of 2013. That number is simply a company's sales revenue with the cost of goods sold taken out, divided by total sales revenue. Put it all together and you get the following statement: 'Our financial position and balance sheet have never been stronger.' Still, there was no talk in today's conference call of an overall profitable quarter, as there was three months ago.

Looking further down the road, Musk said that the next-gen Tesla vehicle, the long-rumored $35,000 (without any subsidies) EV, should be a compelling option with a 200-mile range. That vehicle is still quite far away – he wondered aloud how his company might need more battery cells than the laptop industry does if it's making a half-million cars a year – but at least his automotive competition now has targets to shoot for if they want to beat Tesla in the longer-range EV game."

http://green.autoblog.com/2013/08/07/tesla-sold-5150-models-s-evs-in-q2/

[msongs]

1. maybe he could take his factory to detroit if there's any workers there can do this stuff nt

[wtmusic]

2. Tesla is a non-union shop, so it would be difficult.

"Tesla CEO Elon Musk has a simple solution to one of the big problems hurting Detroit:

Musk in Wired: 'It’s not out of the question to have unions, but if there’s going to be a union, they’d better understand that they’re on the same side as the company,' he added. 'I’m against having a two-class system where you’ve got the workers and then the managers, sort of like nobles and peasants…'

'Most of our experienced factory workers come from unionized environments, and we asked them what benefit did they see in unions,' he added. 'They said, "Well, if their boss was an asshole, they had recourse."'

'I said, "Let’s make a rule: There will be no assholes." I fired someone for being an asshole. And I only had to do that once, actually.'"

http://www.businessinsider.com/teslas-elon-musk-no-need-for-unions-just-fire-the-assholes-2009-6#ixzz2bLCdAip2

[NickB79]

5. I wish my company was run by him

He sounds like an AMAZING man to work for. As it stands, the factory I work in IS that two-class system he warned about, and our union IS all that stands between us and our asshole managers.

Hell, I think you get promoted to the corporate office for being the biggest asshole there.

[wtmusic]

6. It's hard enough to succeed when you're fighting your competitors

almost impossible when you're fighting your own workers or management.

Thanks for perspective

[Mother Muckraker]

7. Breaking down Elon Musk's union busting campaign

'It’s not out of the question to have unions, but if there’s going to be a union, they’d better understand that they’re on the same side as the company,' he added.

And the key word is IF. IF there's going to be a union, then the union should be on the same side as the company. So when the company wants workers to lower their pay and work 12 hour shifts working at an ever faster pace, the union should agree to that.

So if the interests of the union and management are one in the same, why would there need to be a union in the first place?

'I’m against having a two-class system where you’ve got the workers and then the managers, sort of like nobles and peasants…'

He's lying about this. At the Tesla factory, it's a top down management style with Musk on top. They call him the "doctor". Management and production floor workers are completely separate. Management and engineering think of themselves as the elite and the workers should shut up and do as they're told.

'Most of our experienced factory workers come from unionized environments, and we asked them what benefit did they see in unions,' he added. 'They said, "Well, if their boss was an asshole, they had recourse."'

That's a lie. Most of his managers come from NUMMI. When you're running a union busting operation, you rehire the managers from the union busted NUMMI to keep out former workers that know what it's like to have a union and benefits of having a labor contract. Union workers who worked for NUMMI all know that if you get injured, you'd be fired ASAP if it weren't for the labor contract. Also, we made $28/hour plus medical 401k, pension, etc guaranteed by our labor contract. Tesla production floor workers make much less and that's the way Musk wants it. He wants to keep the revenue stream for himself.

'I said, "Let’s make a rule: There will be no assholes." I fired someone for being an asshole. And I only had to do that once, actually.'"

The "assholes" he's referring to are former NUMMI union workers who are willing to speak up and unionize the Tesla production floor. That's why he hired so many former NUMMI managers. These managers know which workers are the "obedient" ones and which are the "assholes"; so, workers can't "lie" about their loyalties to get hired at Tesla.


Another lie perpetrated by Musk is assembling a Model S is somehow different from assembling a Corolla. That's a lie. There's little difference between assembling a Toyota, Mercedes or a Model S. That lie is used to justify the low numbers of former NUMMI workers hired.

[KeepItReal]

3. Maybe someday... He got to get to 500k cars/year in California factory first

Tesla has a lot of room to grow in the Fremont, California factory.

[tinrobot]

4. 200 miles with fast charging is the sweet spot.

Tesla will probably be the first to do that in a reasonably affordable car.