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Tesla reports profit for Q3

Tesla Motors reported Q3 GAAP net income of $22 million on total Q3 GAAP revenue of $2.30 billion, which was up 145% from Q3 2015. Total Q3 automotive revenue was $2.15 billion on a GAAP basis, up 152% from Q3 2015. The quarterly profit is the company’s first in more than three years.

In Q3, combined net orders for new Model S and Model X vehicles grew 68%, compared with the same period last year. The final Q3 delivery count was 24,821 units—300 more than the estimated delivery count. Deliveries increased 114% from the third quarter of 2015, comprised 16,047 Model S (65%) and 8,774 Model X (35%) vehicles. 5,065 vehicles were in transit to customers at quarter’s end. These vehicles will be delivered and recorded in Q4.

Model S average prices decreased 6.5% sequentially, primarily due to the introduction of the 60 kWh models and production of the 100 kWh variants starting late in Q3. 2% of the decline was due to price adjustments made for inventory cars that already had mileage on them, showroom cars with wear, and cars that were built before product transitions,such as those with the original fascia.

Model X average prices declined 1.2% sequentially as production increased beyond just the highest-priced Q2 Signature builds.

Tesla is maintaining its guidance of 50,000 new vehicle deliveries for the second half of 2016, with a Q4 plan of just over 25,000 deliveries. The company expects 30% to 35% of these deliveries to be accounted for as leases for revenue recognition purposes.


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Electrik has full coverage of these very important Tesla announcements. See

Headlines are that Tesla has reduced the issues on Model X production by 93% compared to initial production that gave Tesla a below average in Consumer report. So that is now fixed.

Another interesting announcement is that Musk will let owners of Tesla cars make the most part of the profit to be made from taxi driving on Tesla Network so that it is more relevant to say that Uber will compete with Tesla owners for taxi services rather than say Tesla is competing with Uber. Many people may actually be making money from owing a fleet of Tesla vehicles that they make available for Tesla Network without using the vehicles themselves. This is very interesting. It means there could be tens of thousands of small private Tesla fleet owners that make a living out of competing with Uber and others for taxi services. It means Tesla will not have to finance buying a large fleet of their own cars for use on the Tesla Network.

Another headline is that Musk has made ramping up production of 100kwh battery packs a top priority on line with model 3 and software development for full autonomy autopilot. Apparently Tesla sees very strong demand for cars with the 100kwh battery.

Tesla still expects to deliver 25k cars for Q4. I guess they could deliver more if it had not been for the introduction of the fully autonomous Hardware version 2 Teslas. There will probably be thousands that cancel not delivered but ordered cars because they want the new autonomous capable car instead. That will give some temporary logistic problems that means 25k cars will be it for Q4. For Q1, 2017 I expect another jump in deliveries. I also expect the 100khw option to be available for all versions of Tesla cars in Q1.


As long lasting SS batteries evolve, TESLA will not stop at the 100 kWh level but quickly graduate to 120, 140 and 160 kWh (and more) by 2020/2022/2024.

Another mega factory will be required for the Asian market and a third one for the EU market.

Fixed storage units (for REs and H2 stations) may soon require its own mega factory or two.

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