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Tesla Model 3 Mid Range misses $35,000 target by $9,000 even after price cut

Tesla Model 3 bought [Photo by reader AH]
To offset lower tax credits for its cars that started New Year's Day, Tesla dropped prices by $2,000 for every model on Wednesday. That doesn't quite make up for the $3,750 drop in federal tax credits, and it still doesn't get the company to its stated goal of selling the Model 3 for as low as $35,000.

According to independent delivery reports, Tesla actually added slightly to its stockpiled inventory of Model 3s in December, despite overlapping efforts to bring buyers in. That's led some observers to speculate that all the remaining customers in Tesla's order books are waiting to buy Standard Range Model 3s, which CEO Elon Musk has said since the car's conception will cost $35,000.

DON'T MISS: Tesla cuts prices $2,000, almost hit 250,000 vehicles in 2018

So far Tesla has never built a $35,000 Model 3. Musk has said the company needs “5 to 6 months” of full production of more expensive versions of the car to rebuild its tattered finances before it can begin selling Model 3s for that little.

Following Wednesday's $2,000 price drop, the cheapest Model 3 buyers can get costs $45,200, including a typical $1,200 destination charge.

If buyers earn the full $3,750 federal tax credit on the car (and don't qualify for any other state or local credits), they can bring home a base Mid Range Model 3 for an effective cost of $41,450—getting closer to the mythical $35,000 Tesla, but still a ways off.

READ MORE: Lower-cost Tesla Model 3: Does 260 miles, $46K before incentives split the difference? [Updated]

When he first introduced the car in 2015, Musk said the Model 3 would cost $35,000 before accounting for any tax credits—or, apparently, Tesla's usual practice on its pricing estimates of subtracting theoretical gas savings from the purchase price. As with other automakers, though, the $35,000 target price would not reflect the $1,200 delivery charge, so realistically, those buyers will pay at least $36.200.

All-in, the new price is still $9,000 more expensive than the car thousands of drivers are still waiting for.

Tesla introduced the cheaper Mid Range Model 3 in October in an effort to bring down prices for those buyers waiting for base Model 3s, then raised its price by $1,000 a few days later.

CHECK OUT: Tesla Model Y production to start Nov 2019 (also, Musk doesn't have time to shower): reports

All Model 3s produced so far also come with the Premium interior, including heated, 12-way power leather seats, GPS navigation, and a tinted glass roof. These features are expected to be deleted on the base $35,000 car, along with it having a shorter, 220-mile battery pack.

When the surprise 260-mile Mid Range Model 3 was introduced, Musk said it was cheaper alternative for the company to engineering the whole small battery for the $35,000 Model 3. The Mid Range uses the same pack architecture as the Long Range Model 3 without all its cells.

The lower federal tax credit may not be a big drag on Model 3 sales, as the company has just begun sales in Europe, where the car has not been sold before.

A Look Inside The Tesla Cold Weather Testing Facility

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Published on January 7th, 2019 |

by Steve Hanley

A Look Inside The Tesla Cold Weather Testing Facility

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January 7th, 2019 by Steve Hanley

All automakers test their cars in cold conditions to see how freezing temperatures affect their operation. Tesla is no exception. It uses a cold temperature testing facility out in the middle of nowhere about 2 hours south of Fairbanks, Alaska. It is a private compound used by the military to test tanks and armored personnel carriers, among other things. Tesla has created its own test track at the site, complete with twisty roads, steep hills, and skid pads that allow its engineers to learn how well the cars handle slippery roads and Arctic conditions.

Photo by Kyle Field, CleanTechnica

Cold weather and electric cars are not friends. Batteries are like people. They are happiest when the temperature outside is between 70 and 90 degrees Fahrenheit. Cold batteries don’t charge or discharge as fast as they do when they are warm. Heating systems eat up a lot of battery power. All those range estimates you see quoted by the EPA are determined by tests conducted indoors at room temperature with the heater and air conditioner turned off.

When a CNET Road Show writer visited the area — the first journalist allowed inside — he found the Model S P100D he was given to make the drive from Fairbanks to Delta Junction where the testing facility is located got about 30% less range than expected. Some of that may be attributed to the Pirelli Sottozero winter tires fitted to the car. Some of it may be due to snow and ice on the road surface. And some of it may be down to the heater working overtime to keep Stevens warm during the journey.

Most people who have driven an electric car in sub-freezing weather would probably not be surprised by the results. My 2015 Nissan LEAF also gets about 1/3 less range when the mercury in my thermometer goes into hibernation during the winter. It’s a common occurrence with all electric cars, one that the manufacturers seldom talk about at the time of sale.

During his time in Alaska, Stevens had a chance to drive a Model S, a Model X, and a Model 3 through their paces on snow and ice. For some of the driving, Tesla engineers turned off the stability and traction control systems that normally protect drivers from hazardous conditions, something owners cannot do themselves. Here’s some of what he had to say:

“With everything off, I cut onto the freshly groomed field of snow at 65 mph and jerked the wheel left and right and then was instantly thrown into one heck of a tank slapper. The car swerved back and forth as I frantically sawed at the wheel to keep up. I tried this maneuver a number of times and maybe caught it twice, but that’s with a decade of high-speed ice driving experience at my disposal. While I mean no offense to your average Model S owner, your average Model S owner would have spun every time.

“Re-enabling the car’s stability and traction controls took a quick reboot and then I went and tried it again. Same speed, same field of snow, and try as I might I couldn’t get the car to spin. I yanked the wheel left and right with all the finesse of a thoroughly endorphin’d Crossfitter and yet the car always kept itself inline, moving quickly enough to miss the imaginary moose, then calmly settling itself.”

Stevens explains that all Teslas have open differentials — the kind that deliver power to the wheel with the least traction. Older readers may recall this is what made driving your mom’s Pontiac station wagon on snowy roads such a challenge. But Tesla uses the brakes on each individual wheel to stop them from spinning. Combining that with precise control of how much torque each motor delivers permits the car to tame the most outrageous slides.

A video popped up on YouTube recently of a Model 3 traveling on an icy road with Autopilot activated. That’s not a smart thing to do — ever! — but you don’t have to be smart to own a Tesla. The car was on the brink of spinning out completely when the Autopilot caught the skid and returned the car to a safe path.

The driver, Eric Lapierre, noted that he didn’t touch the wheel at all. Of course, he shouldn’t have been using Autopilot at all in those conditions, but he proudly posted the video from his dash cam anyway.

Stevens was impressed by how the Model S and the Model X handled the snow and ice. A 30% slope coated with ice down center “resulted in a slow and occasionally unnerving but ultimately clean ascent. With the e-differentials disabled (again, not something you can do at home), the thing started the climb, spun its tires, and then promptly (and rapidly) skidded backwards down the hill.”

The Model 3 Performance, however, blew him away with its ability to tolerate extreme slip angles without spoiling the fun until the car was poised to tip over the edge into a full fledged disaster. “In Track Mode, the Model 3 will let you hang the tail way, way out, getting some properly lurid drifts going before it cuts the fun. Yes, it will cut the fun if you get things too far out of shape, killing the car’s power and automatically deploying the brakes at the appropriate corner. But, the car gives you an awful lot of rope to hang yourself with before it kindly and reliably steps in to lift the noose from your neck.

“By building the Model 3’s control software in-house, Tesla’s engineers have even more ability to vector torque from front to rear both under acceleration and under regenerative deceleration. This means the car can react more quickly and more precisely, again letting you push it that much further before cutting in.” The Tesla engineers told Stevens an upgrade to Track Mode is in the works that will allow the driver to manually adjust the torque split between the front and rear motors. First we’ve heard of that!

Finally, Stevens addressed some issues Model 3 owners in cold climates have experienced — things like frozen door handles and windows that won’t go down when the world outside is frozen. Tesla has addressed the latter with a software update, but a solution to the door handle issue is still in the works. Stevens says, “Every new model has some teething problems. It’s how the company reacts that’s the important thing.”

How Tesla reacts is one of the greatest assets the company has. It doesn’t hide behind legalese or excuses. It steps up and addresses problems in a forthright and proactive manner, often with direct responses from the CEO on Twitter. What was his name again? …

When something goes wrong and a company stands behind its product, that’s a bonus that costs the manufacturer next to nothing but can be priceless to the customer.

About the Author

Steve Hanley Steve writes about the interface between technology and sustainability from his home in Rhode Island and anywhere else the Singularity may take him. His motto is “Democracy is socialism.” You got a problem with that?

You can follow him on Google + and on Twitter.

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Tesla Q2 2018 Vehicle Production and Deliveries

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Tesla Q2 2018 Vehicle Production and Deliveries

Jul 02,2018

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Tesla Q2 2018 Vehicle Production and Deliveries

PALO ALTO, Calif., July 02, 2018 (GLOBE NEWSWIRE) — In the last seven days of Q2, Tesla produced 5,031 Model 3 and 1,913 Model S and X vehicles.

Tesla team celebrates production milestone

Q2 production totaled 53,339 vehicles, a 55% increase from Q1, making it the most productive quarter in Tesla history by far. For the first time, Model 3 production (28,578) exceeded combined Model S and X production (24,761), and we produced almost three times the amount of Model 3s than we did in Q1. Our Model 3 weekly production rate also more than doubled during the quarter, and we did so without compromising quality.

GA4, our new General Assembly line for Model 3, was responsible for roughly 20% of Model 3s produced last week, with quality from that line being as good as our regular GA3 line. We expect that GA3 alone can reach a production rate of 5,000 Model 3s per week soon, but GA4 helped to get us there faster and will also help to exceed that rate.

Tesla expects to increase production to 6,000 Model 3s per week by late next month. We also reaffirm our guidance for positive GAAP net income and cash flow in Q3 and Q4, despite negative pressures from a weaker USD and likely higher tariffs for vehicles imported into China as well as components procured from China.

Q2 deliveries totaled 40,740 vehicles, of which 18,440 were Model 3, 10,930 were Model S, and 11,370 were Model X. Model S and X deliveries are in line with our guidance provided on May 3. As we previously noted, we are in the process of changing the quarterly production pattern of those vehicles for the various worldwide regions to ensure a more linear flow of deliveries through the quarter. Both orders and deliveries for Model S and X were higher in Q2 than a year ago. Our overall target for 100,000 Model S and Model X deliveries in 2018 is unchanged.

11,166 Model 3 vehicles and 3,892 Model S and X vehicles were in transit to customers at the end of Q2, and will be delivered in early Q3. The high number of customer vehicles in transit for Model 3 was primarily due to a significant increase in production towards the end of the quarter.

The remaining net Model 3 reservations count at the end of Q2 still stood at roughly 420,000 even though we have now delivered 28,386 Model 3 vehicles to date. When we start to provide customers an opportunity to see and test drive the car at their local store, we expect that our orders will grow faster than our production rate. Model 3 Dual Motor All Wheel Drive and Model 3 Dual Motor All Wheel Drive Performance cars will also be available in our stores shortly.

The last 12 months were some of the most difficult in Tesla’s history, and we are incredibly proud of the whole Tesla team for achieving the 5,000 unit Model 3 production rate. It was not easy, but it was definitely worth it.

**********************

Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5%. Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.

Forward-Looking Statements
Certain statements herein, including statements regarding future production and delivery of Model S, Model X and Model 3, expected cash flow and net income results, and growth in demand for our vehicles, are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations. Various important factors could cause actual results to differ materially, including the risks identified in our SEC filings. Tesla disclaims any obligation to update this information.

Photos accompanying this announcement are available at

http://www.globenewswire.com/NewsRoom/AttachmentNg/aa9b5409-599a-46f3-8b1f-c0462685bf85

http://www.globenewswire.com/NewsRoom/AttachmentNg/c7a0548f-144b-4738-a166-5d9e9612d114

Source: Tesla, Inc.

Tesla Announces Date for Second Quarter 2018 Financial Results and Webcast

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Tesla Announces Date for Second Quarter 2018 Financial Results and Webcast

Jul 18,2018

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Tesla Announces Date for Second Quarter 2018 Financial Results and Webcast

PALO ALTO, Calif., July 18, 2018 (GLOBE NEWSWIRE) — Tesla will post its financial results for the second quarter of 2018 after market close on Wednesday, August 1, 2018. At that time, Tesla will issue a brief advisory containing a link to the Q2 2018 Update Letter, which will be available on Tesla’s Investor Relations website. Tesla will hold a live question and answer webcast that day at 2:30pm Pacific Time (5:30pm Eastern Time) to discuss the Company’s financial and business results and outlook.

What:
Date of Tesla Q2 2018 Financial Results and Q&A Webcast
When:
Wednesday, August 1, 2018
Time:
2:30pm Pacific Time / 5:30pm Eastern Time
Shareholder Letter:
http://ir.tesla.com
Webcast:
http://ir.tesla.com (live and replay)

Approximately two hours after the Q&A session, an archived version of the webcast will be available on the Company’s website.

For additional information, please visit ir.tesla.com.

Source: Tesla, Inc.

Tesla shares tumble 10% as company misses Wall Street vehicle delivery estimates, cuts prices

Tesla shares tumble after lackluster delivery numbers
12:54 PM ET Wed, 2 Jan 2019 | 01:07

Tesla disappointed investors Wednesday, announcing that it delivered 90,700 vehicles during the fourth quarter — short of Wall Street forecasts despite its efforts to ramp up production.

Tesla also said it boosted production during the quarter, churning out 86,500 vehicles, up from 80,142 during the third quarter.

The electric car maker's shares fell by as much as 10.2 percent in morning trading Wednesday. Its stock rebounded somewhat by the afternoon to about $313 a share, down by about 6 percent from Monday's close of $332.80.

“Tesla shares tend to a have a lot more noise and volatility than most, but we think investors who are willing to take a longer-term view of the story will be rewarded handsomely and continue to believe Tesla is on track to post one of the market's most robust year-over-year earnings increases in 2019,” said CFRA analyst Garrett Nelson.

The company also announced that it's cutting prices on all of its models by $2,000 to help offset a reduction in federal tax credits for drivers who buy electric vehicles. The $7,500 federal tax credit for Tesla cars was cut in half as of Tuesday.

Although the delivery numbers were 2,000 fewer than expected in a FactSet survey of analysts, Wedbush Securities analyst Dan Ives told CNBC they were consistent with his prediction. He said the cut in prices was likely weighing on the stock.

“It was a move that was within the realm of possibility, but it caught investors off guard,” he said.

Bearish investors are likely interpreting the price cut as an attempt to stimulate demand, but Ives said it was more of a way to soften the blow from the tax credit drop.

David Paul Morris | Bloomberg | Getty Images
Tesla Model 3 vehicles are loaded onto a truck for transport at the company's manufacturing facility in Fremont, California, on Wednesday, June 20, 2018.

The company delivered 8 percent more vehicles during the quarter, a new all-time high, but the numbers were fewer than expected by Wall Street. The company said it delivered 63,150 Model 3s, 13,500 Model S sedans and 14,050 Model X SUVs. Wall Street analysts had forecast 92,000 total deliveries — 64,900 for the Model 3, 14,200 for the Model S and 13,600 for the Model X, according to average estimates analysts compiled by FactSet. The numbers vary since FactSet tracks nine analysts on total deliveries, but not all analysts break out the data for each model.

FactSet does not compile average estimates on Tesla's production.

Tesla's own internal tracking of Wall Street analysts show that its deliveries were in line with or above estimates, spokesman Dave Arnold said. The company tracks 22 analysts that forecast an average of 91,046 deliveries during the quarter, according to data compiled by Tesla.

Reuters | Stephen Lam
A tent is seen at the Tesla factory in Fremont, California, U.S. June 22, 2018.

Tesla previously gave investors hope that its production rates would improve, saying that the number of labor hours to build the Model 3 fell by more than 30 percent from the second to the third quarter. The company also told investors in late October that it took less time to build than the Model S sedan and Model X sport utility vehicle — another first for the company.

“We will focus even further on cost improvements while continuing to increase our production rate” during the fourth quarter, the company said at the time.

CEO Elon Musk announced Oct. 23 that the company planned to limit certain options on its higher-end Model S sedans and Model X SUVs to streamline production. The company also announced plans during the fourth quarter to start selling a $45,000 version of the Model 3, before raising the price $46,000. It has yet to produce the base Model 3, which it has promised for a price of $35,000 before incentives.

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This man was so fed up trying to get his Tesla fixed that he ended up doing it himself

Tesla owner frustrated so repairs his own Model S and says it's easy as 'Legos'
1:58 PM ET Tue, 28 Aug 2018 | 05:16

Panasonic Debuts SPACe_C: A Scalable eMobility Concept

Osaka, Japan – Panasonic Corporation announced today that it has developed the next generation of a new 48V ePowertrain platform for small electric vehicles (EVs). The new platform is significantly improved from the CES 2018 model by doubling the output while reducing the size of its volume and weight. At CES 2019(from January 8 to… Continue reading Panasonic Debuts SPACe_C: A Scalable eMobility Concept

Tesla Releases Second Quarter 2018 Financial Results

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Tesla Releases Second Quarter 2018 Financial Results

Aug 01,2018

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Tesla Releases Second Quarter 2018 Financial Results

PALO ALTO, Calif. , Aug. 01, 2018 (GLOBE NEWSWIRE) — Tesla has released its financial results for the second quarter of 2018 by posting the current Update Letter on its Investor Relations website. Please visit http://ir.tesla.com to view the letter.

As previously announced, Tesla management will host a live question & answer (Q&A) webcast at 2:30 p.m. Pacific Time ( 5:30 p.m. Eastern Time ) to discuss the results and outlook.

The webcast will be archived on the company’s website following the call.

Source: Tesla, Inc.

Statement from the following members of Tesla’s Board of Directors: Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch

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Statement from the following members of Tesla’s Board of Directors: Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch

Aug 08,2018

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Statement from the following members of Tesla’s Board of Directors: Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch

PALO ALTO, Calif., Aug. 08, 2018 (GLOBE NEWSWIRE) — Last week, Elon opened a discussion with the board about taking the company private. This included discussion as to how being private could better serve Tesla’s long-term interests, and also addressed the funding for this to occur. The board has met several times over the last week and is taking the appropriate next steps to evaluate this.

Source: Tesla, Inc.

Tesla cuts prices on all models by $2,000 to offset reduction in federal tax credit

Tesla's fourth quarter deliveries 'a big disappointment,' says Gene Munster
9:11 AM ET Wed, 2 Jan 2019 | 07:22

Tesla is cutting the prices on all of its models by $2,000 to help offset a reduction in federal tax credits for drivers who buy electric vehicles.

The $7,500 federal tax credit for electric cars was cut in half as of Tuesday.

The company announced the price cut Wednesday as it released delivery results for the fourth quarter that disappointed investors and sent shares south by more than 9 percent.

Tesla said it made the move to soften the impact of falling federal tax credits. But some bearish investors are likely interpreting it as a move to stimulate demand, said Wedbush analyst Dan Ives.

“It was a move that was within the realm of possibility, but it caught investors off guard,” he said.

Reuters | Stephen Lam
A tent is seen at the Tesla factory in Fremont, California, U.S. June 22, 2018.

Karma Automotive Forms Mobility Experiences Division – PRNewswire

IRVINE, Calif., Jan. 7, 2019 /PRNewswire/ — Southern California-based Karma Automotive announced the creation of a new Mobility Experiences Division to help build its long-term brand value and create opportunities for target consumers to enjoy premium hands-on experiences in the luxury electric Revero in settings that match their lifestyle. The new Mobility Division will initially offer… Continue reading Karma Automotive Forms Mobility Experiences Division – PRNewswire