• Follow us


Tesla Is Losing Money Again As Deliveries Decline

2019 has been rocky for electric-auto maker Tesla: It announced it would start rolling out Model 3 sedans priced at $35,000, then made it more difficult to order them. It said it would close all of its showrooms, then said it would keep some open—and raise prices to compensate. CEO Elon Musk predicted that 1 million of its fully self-driving robotaxis would roam the country by next year, even though it has yet to complete its autonomous technology. And Musk continued to tussle with the US Securities and Exchange Commission over his Twitter habit.

The roller coaster continues: On Wednesday, Tesla said it had snapped its two-quarter streak of profits, by posting a $702 million loss for the first quarter amid delivery and logistical woes. The loss was worse than Wall Street chin-strokers expected, equivalent to $2.90 per share, compared with predictions of a 69 cent loss.

As the company continues to grind out production and Musk makes bold claims about autonomous vehicles, the numbers prove that running a car company sometimes comes down to fundamentals, like getting the vehicles into people’s garages.

The report also left a lingering question: Can Tesla make enough money to survive as an “affordable” electric company, one focused on selling Model 3s rather than luxury, higher-margin Model S and X vehicles? Now that buyers have the option of purchasing a more affordable vehicle, “Musk will never sell as many of those higher-priced and higher-profit cars as he used to sell,” says Karl Brauer, the executive publisher of automotive research publication Kelley Blue Book. “Now Tesla lives and dies on the Model 3.”

Tesla, for its part, says it doesn’t believe the Model 3 is cannibalizing sales of its luxury vehicles. “They really do seem to be different market segments,” Musk said on the call.

Tesla pinned the quarterly loss—its largest since last summer—on a few factors, most notably challenges in delivering vehicles overseas. Tesla delivered only 63,000 vehicles in the first quarter, down 31 percent from the fourth quarter of 2018, and just 12,100 luxury S and X Models, down by half from the fourth quarter. Getting cars to customers in China and Europe “was the most difficult logistics problem I’ve ever seen, and I’ve seen some tough ones,” Musk told investors on a call. He restated what the company reported earlier this month: Half of its quarterly deliveries came in the final 10 days of the quarter, creating a crunch that proved unpleasant for employees and customers alike. The company will work on rethinking and refining its delivery strategies throughout the quarter, Musk said, but he advised shareholders not to expect another profit until the second half of the year.

A forthcoming factory in Shanghai might also help Tesla out overseas, and will give it a solid foothold in a protectionist country that’s seriously into electric vehicles. Musk reported that construction is “going amazingly well” and said he expects to reach volume production in Shanghai by the end of the year. Musk has previously said that Tesla is looking into establishing an assembly plant in Europe.

The company also said sales suffered from the planned and gradual phase-out of the federal electric vehicle credit—a problem for a carmaker intent on selling its electrics to the masses. In January, potential Tesla buyers saw the original $7,500 credit cut in half, to $3,750, a move the company has suggested motivated buyers to purchase vehicles in the last quarter of 2018. But the credit will only drop further in the coming months, to $1,875 in July and to zero in 2020.

Tesla said its compact SUV, the Model Y, is still slated for production in 2020. Musk said Tesla had started ordering the equipment needed to build the vehicle, though it hasn’t yet decided whether it will make the Model Y in its Fremont, California, plant or at the Gigafactory in Reno, Nevada.

Musk beat back questions about slackening demand for the company’s cars, raised by frequent price shifts and feature repackagings over the past quarter. “We do see strong demand for the vehicles,” Musk said, calling the $39,500 Model 3 Standard Plus “an incredibly compelling vehicle, affordable to the top 40 percent of income earners in the US and Europe.” (The car now comes with the company’s semi-automated Autopilot feature as standard.)

Tesla stock fell only slightly in aftermarket trading, by 0.3 percent on Wednesday evening, suggesting investors were prepared for the bad news. In fact, the company’s stock had taken a larger hit earlier in the day, when Detroit giant Ford announced it will invest $500 million in the electric vehicle startup Rivian—a small but growing Tesla rival that has promised two 400-mile-range, fully electric utility vehicles by the end of next year. Ford said it would work with Rivian to develop a new EV. Which hints at another challenge for Tesla on the horizon, born in part from its own success: Soon, the best-selling electric vehicle in the world will have much more competition.

More Great WIRED StoriesCombatting drug deaths with opioid vending machinesWhat to expect from Sony's next-gen PlayStationThe stunning loneliness of megacities at nightHelvetica, the world's most popular font, gets a face-liftA new strategy for treating cancer, thanks to Darwin✨Optimize your home life with our Gear team's best picks, from robot vacuums to affordable mattresses to smart speakers.📩 Want more? Sign up for our daily newsletter and never miss our latest and greatest storiesRead More

Leave A Comment

More News

All Motor Trend Stories RSS

5 Things I Learned From a Quick Spin 2019-05-17 17:16:12The Tesla Model 3 is often seen as a game changer in the automotive industry. It battles the BMW 3 Series and offers at least 240 miles of range on el

5 Reasons to Choose the 2019 Ford F-150 2019-05-17 14:31:01Buyers who want a 2019 Ford F-150 with back seats have two cab choices: the F-150 SuperCrew with a full-size rear passenger area, or the smaller F-150

How the Humvee Compares to the New Oshkosh 2019-05-17 13:15:51May 18 is Armed Forces Day, so to honor the 1.4 million Americans who serve, we’re taking you back to one of the heaviest duty, up-armored compa

Refreshing or Revolting: 2020 Cadillac CT5 2019-05-17 12:09:08As consumer demand shifts to crossovers, Cadillac has revamped its entire sedan strategy. Instead of making “tweener” vehicles, Cadillac w

Classic Comparo: Camaro SS 1LE vs. Challenger R/T 2019-05-17 12:05:00Performance Ponycar Showdown The post Classic Comparo: Camaro SS 1LE vs. Challenger R/T Scat Pack vs. Mustang GT appeared first on Motortrend.

2020 Ford Police Interceptor Hybrid Review: 2020 Explorer 2019-05-17 06:00:37Yup, I’ve already been in the latest cop car. As the old joke goes, I was in the front seat—not the back. In fact, I am one of the first c

6 Cool Electric-Tech Features of the Mercedes-Benz EQC 2019-05-17 04:00:37The EQC isn’t just a new SUV from Mercedes-Benz—it’s the start of a completely new line of electric cars from the luxury automaker.

10 Small SUVs That Get Excellent Real-World Fuel 2019-05-17 04:00:33Small SUVs are hot right now, and they can be a great choice for customers who want a raised ride height and more cargo space without the large footpr

Volvo, BMW Earn 2019 Best Overall Value Awards 2019-05-17 04:00:25You don’t usually associate luxury cars with value. Between insane levels of depreciation, high purchase prices, and outrageous maintenance expe

Future Trucks! 2020 and Beyond 2019-05-17 04:00:14Truck makers aren’t standing still. How could they? Surprising new players are planning entries into the truck segment over the next few years,

2020 Audi A4 First Look: 5 New Features 2019-05-15 15:57:01The Audi A4 ranks near the top of its class thanks to its advanced cabin technology, excellent build quality, quick acceleration, and solid ride. For

How Volvo Plans to Fight Tesla in the 2019-05-15 15:16:14Volvo wants to make sure the Volvo and Polestar brands are major players in the electric vehicle space and took some major steps today to make sure th


Tesla’s Latest Autopilot Death Looks Just Like a 2019-05-16 17:46:31A Florida man was killed March 1 when his Tesla collided with a tractor trailer that was crossing its path. A government report says the Autopilot fea

Lilium's 36-Motor Flying Taxi Takes Off for the 2019-05-16 03:01:00The latest aircraft vying for a piece of the not-quite-realized aeromobility space takes a big step toward becoming a reality.

VW Will Make Its Own Batteries to Power 2019-05-15 17:53:18The German automaker plans 70 electric models by 2028. So it's building a gigafactory to ensure it has enough batteries.

Daimler Plans to Make Its Cars Carbon Neutral 2019-05-14 08:00:00The carmaker's new climate plan is bold—for a company. But it falls short of recommended emissions cuts and shows the limits of corporate self-

Why Uber Is Fighting Cities Over Data About 2019-05-13 07:00:00Los Angeles and other cities want detailed data on the shared scooters on their streets. Uber, Lyft and other companies fear a Trojan horse that could

Uber's Underwhelming IPO, Lyft Earnings and More Car 2019-05-12 09:00:00A decade after it was founded, Uber went public. Its shares fell almost 8% on their first day of trading.

Uber's IPO, the Call to Break Up Facebook, 2019-05-10 19:15:22Catch up on the most important news today in 2 minutes or less.

A Bet on Uber Is a Bet on 2019-05-10 17:42:00Uber is scheduled to go public Friday, at an initial valuation of $82 billion, the largest for an IPO since 2014. But its future may rest on eliminati

On Eve of Uber's IPO, Ride-Hail Drivers Stage 2019-05-08 21:00:52Uber and Lyft drivers shut their apps Wednesday to protest for better pay and benefits, and recognition as employees rather than contractors.

My Wild Ride in a Robot Race Car 2019-05-08 07:00:00On a track in Northern California, our writer tags along with the scrappy tinkerers of the autonomous-vehicle gold rush, who gather to share tech and

Lyft’s Loss Grows, but Execs Say the Bleeding 2019-05-07 20:35:19In its first quarterly results as a public company, Lyft said revenue almost doubled, but its loss grew even faster.

Cruise's $1 Billion Infusion Shows the Stakes in 2019-05-07 14:35:39Cruise, majority owned by GM, is at least the fourth company working on self-driving technology to raise $500 million or more in the past six months.

Automotive news - from

BorgWarner unveils Onboard Battery Charger 2019-05-20 05:41:00BorgWarner has unveiled its Onboard Battery Charger (OBC), adding to the company's portfolio of technologies for plug-in hybrid and pure-electric veh

Borealis opens new PP compounding plant in North 2019-05-17 12:32:00Borealis, which supplies polyolefins and base chemicals to the auto plastics industry, has officially opened a new polypropylene (PP) compounding plan

New US auto related tariffs on hold for 2019-05-17 12:23:00President Trump has officially set a six-month deadline to negotiate national security issues with respect to imported automobiles and certa

Porsche SE boosts first quarter profit 2019-05-17 10:23:00Porsche Automobil Holding SE (Porsche SE) said first quarter group profit rose to EUR1.14bn from EUR0.95bn a year ago, an increase of around 20%.

EIB backs Northvolt Sweden battery factory 2019-05-17 10:08:00Europe's Investment Bank (EIB) has given its in-principle agreement to support the financing of the Continent's first home-grown gigafactory fo

Hitachi supplies Audi e-tron inverter 2019-05-17 08:10:00Hitachi Automotive Systems announced Audi is using its electric vehicle (EV) inverter in the e-tron SUV which went on sale in Europe last March.

Nissan names Renault's Bollore for board 2019-05-17 06:54:00Nissan Motor announced a boardroom shake-up on Friday as it looked to move on from the ousting of former chairman Carlos Ghosn and disappointing finan

SEAT aims for 60% production waste reduction by 2019-05-17 06:00:00SEAT has announced that it is focusing its environmental improvement actions this year on reducing waste. Over the past eight years, SEAT has managed

BMW reiterates commitment to e-mobility 2019-05-17 05:59:00The BMW Group, a pioneer in electromobility, says it is rapidly expanding its range of electrified vehicles.

Hyundai Alabama adds head machining plant 2019-05-17 05:58:00Alabama governor Kay Ivey and other elected officials joined Hyundai Motor Manufacturing Alabama management and staff to celebrate the 'grand opening

Accuride names Robin Kendrick as CEO 2019-05-17 05:57:00Accuride has appointed Robin Kendrick as president and CEO, effective 1 June 2019.

ITM extends Shell UK hydrogen agreement 2019-05-17 05:49:00ITM Power has extended its UK refuelling collaboration agreement with Shell, originally announced in 2015.

High Gear Media Network Feed

Genesis says it will off its V-8 engine 2019-05-20 14:00:00The V-8 engine will reportedly not be a part of Genesis' future as the brand looks at tightening emissions regulations around the globe. Car and Driv

Green cooking machine: Rivian R1T Overland concept sports 2019-05-20 13:00:00Rivian has been busy in the past few months, inking a partnership with Ford and preparing for vehicle production. However, the startup electric vehicl

2020 Lincoln Corsair priced: Much-improved MKC replacement starts 2019-05-20 11:45:00Lincoln has replaced the MKC with a much-improved model for 2020 dubbed the Corsair. It will go on sale later this year priced from $36,940, including

Ferrari hybrid, 2020 Karma Revero GT, 2020 Toyota 2019-05-20 11:00:00Ferrari will launch a new hybrid supercar on May 31, and the performance is expected to eclipse that of the LaFerrari, Ferrari's first hybrid. This s

Karma presents 2020 Revero GT in North America, 2019-05-20 09:45:00Following its world debut in April at Auto Shanghai 2019, the 2020 Kamra Revero GT has now been presented on local soil. The updated extended-range el

Get a taste of the explosive acceleration of 2019-05-20 08:30:00Ferrari is set to unveil a hybrid supercar on May 31, and information gleaned from an invite to the unveiling recently mailed to loyal customers revea

TRD rolls out first parts for the 2020 2019-05-20 07:45:00Let's not kid ourselves, the Toyota Supra is one of many poster children for aftermarket modifications. Toyota is very much aware of the car's statu

Terrorism concerns forced "The Grand Tour" to scrap 2019-05-20 07:00:00The original “Top Gear” specials were always popular, as they would see hosts Jeremy Clarkson, Richard Hammond and James May create laughs

VW's new entry-level crossover for US to be 2019-05-20 06:00:00The United States misses out on the compact T-Roc crossover SUV, but local Volkswagen fans can look forward to a similar sized offering from the Germa

Decision on pure electric BMW i8 reportedly coming 2019-05-20 03:00:00BMW just introduced an updated version of its i8 plug-in hybrid sports car for 2019, which means the automaker will soon need to think about plans for

Cheeky VW advertises manual transmission as anti-theft device 2019-05-19 08:00:00Driving a car equipped with a manual transmission these days is something of a rarity among the public, but this rarity has turned into something posi

Bentley Continental GT is luxurious inside, terrifying outside 2019-05-19 04:00:00A Bentley Continental GT is probably the last vehicle we'd imagine for a tank conversion. Yet, here we are. YouTube channel AcademeG, based in Russia

The Truth About Cars

Model Discontinuations Coming Down the Pipe, Mercedes-Benz Dealer 2019-05-20 13:26:32Like most automakers, notably Honda and Ford, Mercedes-Benz is under pressure to pare back build configurations, and perhaps even entire models, to ea

Hackett’s Axe Falls in Earnest As Ford Announces 2019-05-20 12:28:14The steep white-collar job cuts that simmered on Ford’s back burner for a year have come into clear focus. In a letter to employees on Monday, C

QOTD: Next Date? Outta Date! 2019-05-20 11:14:38What’s the matter with the car I’m driving? / Can’t you tell that it’s out of style? / -Billy Joel William Martin Joel might&r

Report: Engine Options Shrink to Two for 2020 2019-05-20 10:19:11Cadillac’s CT6, which remains without a home after January 2020, will shed an engine offering for the upcoming model year. The report comes by w

Mixed Bag: Honda’s Manual Take Rates for 2018 2019-05-20 09:21:49Last week, we shared a report on the number of manual transmission-equipped vehicles Toyota sold last year. If you haven’t the time the to re-re

Junkyard Find: 1980 Plymouth Horizon 2019-05-20 08:08:23After the Oil Crisis of 1973, Chrysler didn’t have the resources needed to design and build a subcompact economy car from scratch. Fortunately,

Recall Redux: Fiat Chrysler Calls Back 600,000 Vehicles 2019-05-18 12:37:38Sudden stalls. Tailgates that open on their own. These issues formed the basis of two Fiat Chrysler recalls in 2018, and, one year later, history is r

Tesla’s Stock Offering Bought It Limited Time, Email 2019-05-17 16:35:24Ten months. That’s how long Tesla’s CEO claims this month’s offering of $2.7 billion in stock and convertible notes bought the strug

Automotive Politics: Saikawa Stays as Nissan’s CEO, Renault’s 2019-05-17 16:10:25Nissan’s Hiroto Saikawa appears to be staying on as CEO, despite claiming late last year that he would soon step down. While not sensational new

Buyer’s Guide: The Best Foam Cannons for Washing 2019-05-17 15:20:03Make the process of washing your car a lot easier. The post Buyer’s Guide: The Best Foam Cannons for Washing Your Car appeared first on The Trut

Ford Debuts New Transmission System for Big-boy Hybrids 2019-05-17 14:46:41As per its $11 billion investment in electrification, Ford intends to have 40 electrified vehicles — 16 of which will be battery-

2020 GMC Sierra 1500: More Diesel, More Speeds 2019-05-17 13:54:09GMC’s new-for-2019 Sierra 1500 took a less controversial styling route than its Chevy Silverado sibling while retaining the numerous upgrades fo

Automotive News Breaking

Tesla shares, bonds take a hit as investors 2019-05-20 14:01:32Tesla's stock price and bonds tumbled Monday as investors worried about the automaker's cash burn, sales outlook and problems with an Autopilot syst

GM: Most vehicles to get over-the-air upgrade tech 2019-05-20 12:33:47The company's new electronic systems, designed to securely handle software downloads from the internet, will be capable of handling up to 4.5 te

Jaguar Land Rover posts first profit in 4 2019-05-20 11:46:13Jaguar Land Rover expects cost reductions, led by job cuts, and a turnaround in China, where inventories have been trimmed, to shore up turnaround eff

Ford to complete 7,000 salaried job cuts by 2019-05-20 09:15:52"Saying goodbye to colleagues is difficult," CEO Jim Hackett writes to employees.

U.S., Japan officials meeting to advance trade talks, 2019-05-20 08:07:06U.S. Trade Representative Robert Lighthizer will visit Japan on May 24 to meet Economy Minister Toshimitsu Motegi to accelerate trade talks ahead of a

Nissan's credit rating hit by negative outlook 2019-05-20 07:58:15S&P Global Ratings placed the automaker’s rating on negative watch after it issued a weaker earnings outlook and said there is a more than o

Next Mitsubishi CEO says U.S. exit 'probably' not 2019-05-20 06:39:03Takao Kato, who helped establish Mitsubishi's joint manufacturing plant with Chrysler in Illinois some three decades ago, conceded Mitsubishi's U.S.

Sales staffers sue Hendrick, await class-action ruling 2019-05-20 00:00:01The Florida lawsuit against Hendrick Automotive Group and 33 former Rick Hendrick Chevrolet Naples employees alleges the company and dealership fraudu

CEO: Nissan performance is hitting ‘rock bottom' 2019-05-20 00:00:01Nissan CEO Hiroto Saikawa has a plan to bring Nissan back in the U.S. and globally. But he says it's going to take years.

Korea's 1-2 punch in the battle of the 2019-05-20 00:00:01Kia's muscular Telluride has elbowed into the crowded three-row crossover segment with gusto. And as the market cools, Hyundai is warming up for the

Nissan pledges hands-free option in Japan as early 2019-05-19 00:00:01Nissan will introduce truly hands-free highway driving this fall when it debuts its second-generation ProPilot system with several advances over the c

GM considered selling HQ amid 2018 restructuring 2019-05-19 00:00:01Talks between GM and billionaire Dan Gilbert did not advance far, at least in part because the Renaissance Center -- first built by Ford Motor Co

autoevolution news

Best Used Large SUVs: Fifth Gear Likes Volvo 2019-05-20 12:39:18SUVs are in right now, like it or now, though if you're reading this right now, chances are you're already a fan. But what should you buy if you wan

GLB-Class Spied Testing in Electric Mode: EQB or 2019-05-20 11:59:01Mercedes has been making these compact cars since 2011, longer if you include the smaller, less popular stuff. However, with the exception of the B-Cl

Dynatrac Codex Is Not Your Average 2020 Jeep 2019-05-20 11:42:30In the mid-size segment, there’s nothing more expensive than the 2020 Gladiator. Jeep wants $33,545 before destination charge for the most affor

NASA Releases Moon 2024 Mission Trailer 2019-05-20 11:40:25America is going back to the Moon, and this time it is going to stay. In 2024, NASA will launch a fresh batch of astronauts toward the Moon, as part o

Ford to Fire 7,000 Employees Worldwide 2019-05-20 10:55:34In an effort to cut both expenses and bureaucracy, American car manufacturer Ford is on the verge of letting go around 7,000 people, most of them work

Connected Cars Could Significantly Cut Travel Time, Cambridge 2019-05-20 10:03:55All the entities working toward the creation of the world's first truly self-driving car are pointing to the fact that autonomous vehicles (AV) will

BMW M8 Convertible Hunts Down New X6 M 2019-05-20 09:50:46If you've just landed from the past (perhaps the time machine had been invented for quite a while and it was kept secret, who knows?), you might be s

2019 Renault Megane Lineup Updated With 1.7 Blue 2019-05-20 09:49:32Another model year, another engine for the Megane. The compact model from Renault is now available with a 1.7-liter turbo diesel, the Blue dCi 150 tha

Lamborghini Urus Drag Races Jeep Grand Cherokee Trackhawk, 2019-05-20 09:37:59A drag race between the Lamborghini Urus and the Jeep Grand Cherokee Trackhawk easily deserves the Clash Of Titans label. Heck, using good old notions

Toyota Hits Back at Trump Over Being Deemed 2019-05-20 09:06:30Late last week, the White House issued a proclamation about the impact of auto imports on section 232 of the Trade Expansion Act of 1962, saying they

Tesla Model 3 Drag Races BMW M2 Competition, 2019-05-20 08:59:19This is an uber-exciting time for us car aficionados, with the electrification war meaning we get to enjoy fierce battles between ICE (Internal Combus

13-Year-Old Boy Leads Police on 100mph Chase in 2019-05-20 08:55:05A couple of 13-year-old boys from Otter Tail City, Minnesota, thought they were in for a fun night when they got inside a 2010 Chevrolet Impala and we

Disclaimer and Notice:WorldProNews.com is not responsible of these news or any information published on this website.