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Tesla is the world’s only vertically integrated Energy Company that offers clean energy products which also includes generation and storage plus consumption. Tesla designs, develops, manufactures and current products. Such as The Roadster, which is Tesla’s first vehicle production? The motor for the Roadster was an AC motor descended directly from Nikola Tesla’s original in 1882. The Roadster was released in 2008 as the first production automobile to use lithium-ion battery cells. Tesla sold about 2,450 Roadsters in over 30 or more countries. The Roadster cost starts at $200,000 with a $50,000 as a deposit.
The Model S, which is a fully electric four door sedan with all wheel drive, dual motor system options and the performance version has an speed upgrade that makes it the quickest accelerating production vehicle and the longest range all-electric sedan in the world. Tesla’s Model S cost up to $104,500 with 691hp. Tesla’s Model X, packed with high performance features such as all wheel drive dual motor system, autopilot system, and third row seats and incorporates a unique falcon wing door. The Model X was released in the third quarter of 2015 in the United States for a price of $80,000 before delivery charges and is sold in all markets where the Model S is available.
Tesla is currently manufacturing out of their two major Gigafactories. Gigafactory 1, where Tesla manufactures energy storage products and the build of their latest vehicle “Model 3” battery packs and drive units, meaning they will be doing vehicle manufacturing at Gigafactory 1 in Fremont, California. The Model 3, is a low priced sedan designed for the mass market place. The Model 3 cost $35,000 with 271hp and MPG 131 in city/ 120 highway mileage. The Model 3 is a middle class vehicle that Tesla planned to push forward in the second half of 2017 to begin doing volume production and deliveries. Meaning Tesla is bringing massive Model 3 production to all markets and definitely not on a small scale. Stockholders will be seeing be seeing more interest soon and Tesla will be seeing more capital.
Tesla’s 2nd Gigafactory is in the city of Buffalo, New York and it manufactures solar roofs, solar panels and also provides installations. Tesla’s solar energy systems are a major component of Tesla’s progress. Tesla also made a long-term agreement with Panasonic to manufacture photovoltaic cells at Gigafactory 2 with a negotiated pricing provisions and the intent to manufacture 1 gigawatt of solar panels annually in 2016. Additionally, Tesla announced a patent policy in which they irrevocably pledged that Tesla will not initiate a lawsuit against any party for infringing their patent through activity relating to electric vehicles or related equipment. Stating that the things Tesla are doing will not only help other electric car companies but more so the world.
Tesla CEO’s merger with his cousins’ sustainable-energy company called Solarcity. Since 2006, Solarcity has installed solar energy systems for more than 325,000 consumers. That alone, makes the perfect target of people to buy a Tesla. They now have a nice customer rate now that they can market Tesla vehicles too. For grid-scale applications, Tesla has these 200 kwh battery blocks that can be grouped together to offer Mwh and Gwh installations. Tesla began production of these second generation energy storage products at Gigafactory 1 in 2016. This means Tesla can upscale its battery technology to any size you need, from a home or even a small factory.
As a result of Tesla’s acquisition of Solarcity, they have reclassified the presentation of their historic energy store products revenue and also cost of revenue from services and other to energy generation and storage. On December 31, 2016 Tesla had 265 stores, galleries, service plus and service facility locations around the world and by now these number have increased. Tesla has over 4,140 locations around the world, had over 7,110 Tesla wall connectors installed. Meaning upscale hotels, resorts and malls. Tesla also had 790 supercharging stations opened worldwide with plans of expanding the supercharger network.
In January 2017, Tesla completed the acquisition of Grohmann Engineering GmbH. A German manufacturing company with expertise in automated production. Tesla expects this acquisition will facilitate and expand vehicle production. Historically Tesla has been able to gain significant media coverage for the company and products. Word of mouth and media coverage primarily drive sale leads even without your traditional advertising. Meaning Tesla saves a great deal of money on marketing because the quality of Tesla’s products. Tesla shows no signs of slowing down in the innovative business world. Following Tesla’s introduction of the Model 3 production. Tesla planned to introduce an additional line of vehicles to address the broader cross-section of the consumer vehicle market as well as commercial EVs in the years to come.
Tesla’s Recent all electric production vehicle is a Semi Truck they simply call Tesla Semi. The Tesla Semi is a 0-60 mph semi truck with 80k lbs in 20 seconds and uses less energy consumption per mile. Tesla said, the Semi is the safest, most comfortable truck ever made. The Tesla Semi’s reservations start at $20,000 and is fully loaded with instant traction control with four independent motors, enhanced autopilot helps to avoid collisions, a centered driver position for maximum visibility and a low center of gravity to prevent rollover. This goes to show that Tesla is more than just vehicles but is also everything that goes into their vehicles. Tesla’s energy efficiency and cost of ownership, Tesla vehicles only use an electric power train that enables Tesla to create and design more energy efficient vehicles that are less complex than your normal hybrid or internal combustion engine vehicles. The cost of fuel a Tesla vehicle uses are a lot less compared to internal combustion vehicles. So not only are Tesla vehicles more fuel efficient but they also break down less often.
Tesla’s Gigafactory 1 is currently expected to attain full production capacity by 2020, which is anticipated to be sufficient for the production of approximately 500,000 vehicles annually as well as for the production of our energy storage products. Tesla recorded record vehicle deliveries in the recent quarter, delivering over 26,000 cars, Most of which were Model S ; X. Only about 200 of them were Model 3 as sale continues forward. This was a record Q3 in 2017 for Tesla, delivering cars at over a 100,000 a year per run rate. The Model 3 is not messing up sale for the previous models, sales are stronger than ever. So this is a great time for Tesla in terms of units sold.
Revenue was up by 3 billion in the quarter, was up by 30% from about $2.3 billion in the same quarter the year before. It looks like Tesla actually made money last year but looks like they lost about five hundred million dollars just this year. Just in 2016 Tesla put a lock on all spending just to prove to the market the it can to be profitable. This year Tesla is investing heavily on Model 3 production, guiding that lower gross margins were going to significantly impact profitable. So even though revenue went up, loss is increasing. Tesla’s gross margin has been fluctuating between 20% and 30% for the past years, this past quarter Q3’17 Model 3 is hurting the gross margin sitting it at a all low of 15%. Tesla also states that in the next quarter margins will still be pretty low because of manufacturing of the Model 3.
Tesla’s mission is to get Model 3 to a gross margin of about 25% which will Tesla back in the game of that 20 to 30 gross margin range for 2018. Tesla has been growing very expeditiously with a revenue increase of 80% this year putting Tesla at a revenue of $8.5 billion through the first three quarters of this year. Tesla is doing so without any price count of the sales of the Model 3, all with just Model S, X and energy sales. Tesla has a operating loss of 1 billion dollars and more than half of that came in this quarter alone. Since Tesla’s merger with Solarcity, energy revenue has continuously climbed each year hitting a record of $318 million dollars in Solar and Batteries, growing at a run rate of $1.2 million dollars a year and still promising growth for years to come. Tesla ended quarter 3 2017 with $3.5 billion dollars in cash, Model S/X sales to be 100k in 2017, went up 30% from 2016, Production of 5k Model 3’s per week moved back to late quarter 1 2018 and net orders for the Model 3 continue to grow rapidly.
Tesla is looking to burn only $1.5 billion in the next quarter alone on production. Tesla is on schedule to complete australia battery project, revenues will be recognized when project is finished. Tesla’s Solar roof production is ramping heavily in 2018. Solarcity continues to move towards cash sales vs. leasing, expects 50% of sales to be in cash for quarter 4 ; The Semi event is still on track for mid november 2017. Tesla’s Cash balance is at $4 billion at the end of the quarter up about $700 million quarter for quarter. Customer deposits were down from $663,859 to $616,398 but there are more than 600 thousand reservations on the books. Tesla has a large amount of long-term debt ranging from 5 million in 2016 to 7 million in 2017. Total automotive revenue, went from 1 million to 2 million more than last year. More than doubling in the quarter due to the Model S & X doing very well in sales.
Tesla’s Energy generation and storage was from $22,728 million to $213,944 million, due to the fact that now Solarcity is now included in Tesla’s financial statement as it was not included last year in 2016. Total revenues more than doubled from 1 million to 2 million, service revenue will grow along with car sales so be on the lookout for that. Tesla’s gross profit almost triples in the quarter going from $252,468 million, to $667,946 million. If you analize Tesla’s gross profit you get about $2.7 billion in run rate of Q1’17. This is a number that is more than doubling year after year. Loss from operations grew slightly from $248,224 million to $257,549 million, because Tesla is currently investing like crazy in their products. Net cash used in operating activities went down from $249,605 million to just $69,811 million because they are only using what they need to use. Net cash in investing activities are up $926,943 million from the year 2016, which was $233,819 million because of the building of Gigafactory 1 for the Model 3.
In Tesla’s Equity Incentive plans, it states that as of March 31, 2017, there were over 17 million shares underlying outstanding equity awards. Meaning there are stock options worth 17 million a share that can be redeemed at some point in the future. Tesla plans to achieving an annualized gross margin of greater than 30% for any three-year period. Which i believe can happen in Tesla’s near future. Tesla is current worth about $55 billion with a current earnings power of $1.5 billion. For Tesla, China is one of the biggest markets besides the United States, growing rapidly in sales overseas. Last year in 2016, Tesla earned $119,478 million in china, that number doubled as this past year Tesla hit $503,933 million. China was about 20% of Tesla’s sale last quarter. China is becoming more and more of Tesla’s business each day.

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