Tesla Reported Second Quarter Result on Wednesday with $4 Billion in Revenue. It also touched a new milestone for Model 3. Model 3 is now Finally making money for Tesla.
The company utilized $430 Million in cash for the Second Quarter. Tesla delivered 18,449 Model 3 for Second Quarter 2018. Total Production is 28,578 for Model 3. Tesla Could achieve 30% or maybe Higher gross margin.
Over the past 12 months, we have overcome bottlenecks across various stages of the Model 3 manufacturing process. Last quarter, it became clear that GA3, our main general assembly line, would likely become a production constraint if certain issues were not addressed. This assembly line, which is where we add all the components to a painted metal body, was designed to work with hundreds of robotic lifters that bring components to the line. Due to the density of the line and the relatively high downtime of the lifters, ramping GA3 became substantially more complicated than we had anticipated. That said, significant progress has been made in the last few months, and GA3 is now expected to reach a production rate of 5,000 per week very soon,” Tesla stated in the letter.
Tesla Energy :
The company successfully installed 203MWh energy storage 2nd quarter & 54 MW of Solar energy generation systems. Tesla is going through various changes for Solar & Energy Storage on selling exclusively online & via Tesla Stores.
We are steadily ramping Solar Roof production in Buffalo and are also continuing to iterate on the product design and production process, learning from our early factory production and field installations. We have deployed Solar Roof on additional homes in Q2 and are gaining valuable feedback from each new installation. We plan to ramp production more toward the end of 2018 and are working hard to simplify the production and installation process before deploying significant capital into factory automation,” Tesla stated in the quarterly letter.
Guidance for 2018
Tesla is Aiming to deliver 100,000 Model S & X vehicles for 2018. For the Third Quarter, Tesla is Aiming at 50,000 – 55,000 Model 3. Model 3 is expected to deliver 15% Gross Margins for the company in the third quarter & 20% in Fourth Quarter.
Scenario for Electric Cars Across the Globe
Currently, Electric Cars contribute less than 1% in total Market. Rest 99% are Petrol/Diesel Cars in the world. With climate change, the scenario is going to change very fast. With most of the developed countries are now offering some discount on Electric Cars. The trend could change very fast. Being a leader in the market Tesla could grasp the market very fast in the future.
Tesla’s full Q2 2018