Published: Fri, February 01, 2019
Markets | By Otis Pena

Electric carmaker Tesla's shares fall after surprise CFO exit

Electric carmaker Tesla's shares fall after surprise CFO exit

Musk said, "Batteries and powertrains will come out and go straight into the vehicle".

"Earlier this month we started construction of Gigafactory Shanghai, and by the end of this year we expect to be producing Model 3s using a complete vehicle production - that's body paint, body assembly, general assembly and module production".

"I expect the demand for the Model Y will be maybe 50% higher than the Model 3", Musk said, adding that he saw annual demand for the existing Model 3 at around 700,000 to 800,000 units a year, and maybe as low as 500,000 if a recession emerges.

After Musk sent an email to workers asking for help improving production efficiency, the automaker has slashed its man-hours per vehicle by 20 percent for the Model 3 in the last quarter.

"Bottom line is we need the Shanghai factory to achieve that 10,000 rate and have the cars be affordable", Musk told analysts. "Turning a profit, creatively addressing challenges and getting the Model 3 to the masses were huge milestones, but keeping up this momentum is virtually impossible", she said.

Given these plans, it is all the more surprising that Tesla projects capital expenditures of only $2.5 billion for the year. This is because Model Y will share about 3/4 of the components from the Model 3.

Sen. Cory Booker Announces His 2020 Candidacy
Booker's interests were broad, however: He also served as student body president and ran a crisis hotline for students. Booker, 49, has been looked at as a potential presidential contender for most of his political life.

As a result, he made a decision to open the floogates and make all of Tesla's patents public for all those willing to use them in good faith.

That long-promised $35,000 version is not yet on sale, though it's scheduled to arrive this year sometime. The California-based company also generated a record-breaking $7.2 billion in revenue for the quarter.

US electric vehicle maker Tesla Inc said it will start taking orders in China on Friday for a lower-priced version of its Model 3 auto, as it seeks to accelerate China sales hit by trade friction between Washington and Beijing.

The new SUV will be produced at Tesla's Gigafactory in Nevada, and should incur substantially lower costs than the Model 3 line - due to sharing a platform and 75% of its components with the Model 3. Musk also assured investors Tesla will be able to "comfortably" pay off a $920m convertible bonds maturing in March. The Model 3 was the best-selling luxury vehicle in the USA during the fourth quarter and the fifth best-selling passenger auto, according to data from research firm Edmunds. Tesla recognizes revenue once a vehicle is delivered.

'Tesla has a fantastic brand, and by all accounts a fantastic product, but we're anxious it's also fantastically expensive.

Of the larger (and older) S and X models, Tesla delivered 27,607 units to customers worldwide in the fourth quarter.

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