Tesla Model S/X Sales This Year Have Fallen by 400 units Compared From the First Two Months of Last Year. But, this Does Not Mean Tesla is Losing Sales. It Means Customers Are Waiting to Get their Hands on the Cheaper Model 3.

Tesla: The Moment Of Truth Is Approaching

Tesla ( TSLA) is an extraordinarily innovative company that has achieved amazing results in several sectors in a relatively short time frame. Let's face it, if it weren't for Tesla, EVs would still be limited to the likes of the Leaf and the Prius.

From article, ([of an] apparent slowdown in Model S/X sales this quarter. Tesla said that it aims to deliver roughly 100,000 Model S/X vehicles this year, about the same as last year. The company also claimed that while demand remained strong for these vehicles, production capacity was constrained due to increased resources being diverted to the Model 3 vehicle.

According to EVObsession.com, Tesla sold about 8,400 Model S and Model X vehicles in the U.S. in the first two months of this year. This is lower than last year's figure of 8,800 Model S/X vehicles for the same time frame. Since about 60% of Tesla Model S/X sales come from the U.S., we can assume the company sold around 15,000 Model S/X vehicles in total in the first two months. By adding around 50% to account for March sales, this would give us approximately 22,500 Model S/X units for Q1. This is lower than last year's 25,000 units and will make it very difficult for Tesla to achieve its target of 100,000 Model S/X vehicles this year.

The Model 3 Rampup is likely one of the most important production efforts ever. It is certainly the most crucial manufacturing process in Tesla's history as a company. A true EV, affordable, capable, and stylish, the likes of which have never been seen before. However, the rollout process has been anything but smooth, plagued by various problems and numerous delays.

Going by the company's own original estimates, Tesla should be cranking out Model 3s at around 10,000 units per week by now. the drastically revised estimates call for about 2,500 units by now.

Tesla was originally shooting for 500,000 Model 3s this year, but even with a constructive rampup from here, the company will likely only produce about 100,000.)

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Me, "I call this apples and oranges. If we consider that Model S/X sell 100,000 vehicles and the Model 3 produces even half that that, this is still 50,000 more electric cars on the road, then if no Model 3 was introduced.
 No one said producing the Model 3 would be easy. But if you look at the start up production numbers of Model S and X it took some time for them to be produced in great numbers too. Analysts really need to sit back and stop bad mouthing Tesla."  

You can't trust Analysts when it comes to making a Judgement on Tesla. Analysts are Looking at Tesla to Fail to Make a Profit. They are Not Looking at Some Specifics.

Tesla: The Moment Of Truth Is Approaching

Tesla ( TSLA) is an extraordinarily innovative company that has achieved amazing results in several sectors in a relatively short time frame. Let's face it, if it weren't for Tesla, EVs would still be limited to the likes of the Leaf and the Prius.

Me, "There have been numerous analysts who say Tesla is doomed. If Tesla can continue to produce Model 3s in ever larger numbers per week, analysts views will be squashed. (Remember, a lot of these analysts are betting against Tesla. So, it is in their best interests to find any faults that will devalue Tesla stock.) Ford, which can produce millions of ICE cars, and Tesla, that sells hundred thousands of electric cars, are different because its not totally about production rates its about profit margin."

From article, (Ford's average selling price for a car was just $22,000 in 2017. The company had a gross margin of 10%, and a profit margin of about 5%, indicating the company nets about $1,100 per vehicle.

We know that in the intermediate term, Tesla is shooting for a gross margin of 25% on the Model 3. With an average selling price of about $47,500 per vehicle, Tesla would have a gross profit of about $11,875 per vehicle to Ford's $2,200. Moreover, if we assume Tesla can earn a net income of about 12.5%, (half of its gross margin per vehicle) Tesla would earn about $6,000 per a Model 3, or more than 5 times what Ford makes per a vehicle. This means Tesla could earn nearly as much as Ford by just selling 1 million Model 3s per year. This is not considering Model S/X sales, energy generation/storage, Tesla Semi, or any other future products.

Granted Tesla is a direct retailer, and traditional automakers like Ford are wholesalers. So, their business models differ somewhat. Also, Tesla computes its gross margins differently from traditional automakers by excluding R&D spending and other administrative costs. Therefore, even by achieving higher gross margins than Ford and others Tesla would have additional costs to consider before a net income is delivered.

Nevertheless, by looking at the situation from this perspective, and by assuming that Tesla will be able to achieve its margin goals, it becomes very clear that Tesla has the potential to become enormously profitable within the next few years. Whether this actually happens remains to be seen, but this should give people an idea why the market is currently valuing Tesla at $50 billion. It is on the assumption that the company will become profitable and will be able to achieve target margin goals at some point in the next few years. Based on the underlying statistics, ultimately (within the next 3-5 years), Tesla could be valued at much more than $50 billion.)

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Elon Musk to use Excavated Material from Its Boring Company Tunnels to Make Lego Like Brick Kits. Nothing Wrong Here. Elon is Looking At All Kinds of Ways to Make a Profit to Fund His Company.

Elon Musk says Boring Company will sell 'Lego-like' kits of excavated rock

Elon Musk has sold millions of dollars of branded hats and flamethrowers, and now, he says his Boring Company will sell "interlocking bricks" made from the rock that its tunnel-creating machines excavate from the ground. In other words, think Lego, he says, except giant, heavy, and made of earth.

From article, (Elon Musk has sold millions of dollars of branded hats and flamethrowers, and now, he says his Boring Company will sell “interlocking bricks” made from the rock that its tunnel-creating machines excavate from the ground. In other words, think Lego, he says, except giant, heavy, and made of earth.

Musk says that the Boring Company will sell “kits” of bricks, starting with one that makes it easy to build things from “ancient Egypt,” like replicas of the pyramids, the Sphinx, or the Temple of Horus. The bricks will be “lifesize,” though it’s not clear what that actually means. And they’ll be bored through the middle, to save some weight, but still rated to withstand California’s earthquakes. (As is typical, Musk announced the idea in freewheeling fashion on Twitter.)

It’s unclear when these bricks, or the kits, will be available or how much they’ll cost. The Boring Company is currently only digging short, preliminary tunnels in California and Maryland, so there’s presumably not enough to start selling any of this upturned rock just yet. But the small company has big plans for tunnels around the country meant to facilitate debatably futuristic modes of transportation, so there will be plenty of newly removed earth if even half of those ever come to fruition.

 What is clear is that finding something constructive to do with all this excised earth has been a priority for the Boring Company for a while. The company has long stated on its website and in various city council planning meetings that it wants to find ways to recycle the bedrock it will be removing from its tunnels, with an emphasis on turning them “into useful bricks to be used to build structures.” (The FAQ on the company’s website even references the pyramids as inspiration for the idea.) The Boring Company has also considered using this extra earth to line the tunnels it’s creating instead of doing so with concrete, which it claims would be more environmentally friendly.)

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U.S. President Theodore Roosevelt Foreign Policy was, "Speak Softly and Carry a Big Stick." For President Trump It is, "Speak Loudly and Carry a Big Stick."

Trump Scores His First Revised Trade Deal, With South Korea

President Donald Trump secured his first revamp of a U.S. trade deal, after reaching an agreement this week with South Korea that would allow American automakers greater access to that country's markets, senior administration officials said on Tuesday night. The agreement came as the U.S.

From article, (President Donald Trump secured his first revamp of a U.S. trade deal, after reaching an agreement this week with South Korea that would allow American automakers greater access to that country’s markets, senior administration officials said on Tuesday night.

The agreement came as the U.S. has been involved in renegotiating the North American Free Trade Agreement with Canada and Mexico and has imposed tariffs that have roiled financial markets.

 Seoul has agreed to double to 50,000 the number of cars each U.S. automaker can sell in the Asian nation without meeting local safety standards, said the officials, who briefed reporters on condition of anonymity. However, it’s not clear how the higher cap will immediately benefit American manufacturers, given that sales by American automakers currently fall well short of the new limit.

Under the revamped deal, the U.S. will extend a 25-percent tariff on pickup-truck imports until 2041. The tariff was set to expire in 2021 under the existing trade agreement, which came into force in 2012.

Meanwhile, South Korea agreed to limit its steel exports to the U.S. to about 2.7 million tons of year, in exchange for relief from the 25-percent tariff Trump announced earlier this month. Many of the details of the revised trade deal and the steel quota were previously disclosed by South Korea.

The agreement is Trump’s first revised trade pact since taking office. Trump has slammed existing trade agreements with several countries, regularly singling out the six-year-old trade deal with South Korea, known as Korus.)

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