Tesla sales continue to surge in the face of chip shortages
10-11-21 | 06:57 AM
#17
Lexus Test Driver
Joined: Jan 2007
Posts: 7,460
Likes: 228
From: CA
Originally Posted by Allen K
I love Tesla and I have 2 of them. Premium is a stretch.
10-11-21 | 10:01 AM
#19
Lexus Test Driver
Joined: Jan 2007
Posts: 7,460
Likes: 228
From: CA
).Also, when i drive around in Los Angeles with my minivan, I'm always thinking people drive way too fast...in the Tesla, I'm wondering why everyone is so freaking slow.
10-20-21 | 02:54 PM
#20
Lexus Test Driver
Joined: Jan 2007
Posts: 7,460
Likes: 228
From: CA
Tesla CRUSHES it this quarter because of their ability to be flexible in their supply chain. They have a 15% op margin (significantly higher than Toyota, GM, Volkswagen) and only $270M were from credits vs. $1.8B from cars (Non-GAAP). Congrats to those of you who are holding stock still
https://www.wsj.com/articles/tesla-p...ce-11634722200
The car maker reported a $1.6 billion third-quarter profit, up from $331 million a year earlier, on record revenue of $13.8 billion. The results beat Wall Street expectations of a profit of around $1.3 billion and $13.6 billion in revenue.
The strong earnings came after Tesla delivered around 241,300 vehicles to customers in the three months ended in September, up roughly 73% from a year earlier, despite parts shortages that have hindered auto makers this year. Underpinning that growth was an uptick in sales of vehicles made in China, now home to Tesla’s largest auto plant by output.
“A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed,” Tesla said in its earnings release.
Tesla is more vertically integrated than many auto makers, helping the company navigate the chip shortage more smoothly than some of its competitors, analysts said. “Tesla has a better ability to pivot in chip sourcing, given its software lead,” Credit Suisse Group AG analyst Dan Levy said in a recent note to investors.Analysts expect Tesla’s vehicle deliveries to continue to climb in the current quarter to around 266,000, according to FactSet—positioning the company to hand over nearly 900,000 vehicles to customers in 2021. The company has said it is aiming to increase deliveries by more than 50% over last year’s total of nearly half a million vehicles.
Tesla shares have soared in recent weeks, closing Wednesday around $866, near their record close of $883.09 in January. The stock fell less than 1% in after-hours trading after the company posted results.
Finding workarounds to parts shortages hasn’t come cheaply, however.
“We are seeing significant cost pressure in our supply chain,” Chief Executive Elon Musk said at the company’s annual shareholders’ meeting earlier this month. “The sheer amount of money we’re spending on flying parts around the world is just not great but hopefully temporary.”
Mr. Musk also suggested at the meeting that parts shortages were contributing to Tesla product delays. The company has postponed the rollout of its Cybertruck pickup by about a year. Production is now likely to start in late 2022. Output of the company’s long-delayed semitrailer truck, originally due in 2019, has been pushed back even further—to 2023.
“We were just basically limited by multiple supply-chain shortages, like so many supply chains of so many types, not just chips,” Mr. Musk said.
It isn’t known whether Mr. Musk, a mainstay of Tesla’s earnings calls, will make an appearance on Wednesday. The billionaire, who also runs Space Exploration Technologies Corp. and has complained about his workload, said in July that he would no longer be participating in such calls by default.
Tesla is aiming to lay the groundwork for growth by opening two new vehicle factories by the end of the year, one in the Austin, Texas, area, where the company is moving its headquarters; the other outside Berlin.
Tesla said it was in the process of fabricating its first preproduction vehicles in Texas and expected to receive final permit approval before the end of the year for its factory in Germany. The company said it aimed to start regular production of Model Y vehicles at both sites before year-end.
The company, meanwhile, is facing increased scrutiny of its advanced driver-assistance tools, which help with tasks such as navigating within a lane on the highway.
Last week, the National Highway Traffic Safety Administration, the federal auto-safety regulator, voiced concern that a lack of transparency related to such features—which don’t make vehicles autonomous—could undermine safety oversight. The agency opened an investigation into Tesla’s Autopilot driver-assistance system in August after a series of crashes involving Teslas and one or more parked emergency vehicles.
Tesla hasn’t responded to requests for comment about the probe. NHTSA, as part of its investigation, has asked Tesla to provide volumes of information about its advanced driver-assistance technology. The first batch of data is due to NHTSA on Friday.
https://www.wsj.com/articles/tesla-p...ce-11634722200
Tesla Posts Record Quarterly Earnings on Supply-Chain Resilience
Elon Musk’s electric vehicle-maker sales jump on strong deliveries
Tesla Inc. TSLA 0.18% notched a third consecutive record quarterly profit, thanks in part to the electric-vehicle maker’s ability to navigate persistent global supply-chain disruptions.The car maker reported a $1.6 billion third-quarter profit, up from $331 million a year earlier, on record revenue of $13.8 billion. The results beat Wall Street expectations of a profit of around $1.3 billion and $13.6 billion in revenue.
The strong earnings came after Tesla delivered around 241,300 vehicles to customers in the three months ended in September, up roughly 73% from a year earlier, despite parts shortages that have hindered auto makers this year. Underpinning that growth was an uptick in sales of vehicles made in China, now home to Tesla’s largest auto plant by output.
“A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed,” Tesla said in its earnings release.
Tesla is more vertically integrated than many auto makers, helping the company navigate the chip shortage more smoothly than some of its competitors, analysts said. “Tesla has a better ability to pivot in chip sourcing, given its software lead,” Credit Suisse Group AG analyst Dan Levy said in a recent note to investors.Analysts expect Tesla’s vehicle deliveries to continue to climb in the current quarter to around 266,000, according to FactSet—positioning the company to hand over nearly 900,000 vehicles to customers in 2021. The company has said it is aiming to increase deliveries by more than 50% over last year’s total of nearly half a million vehicles.
Tesla shares have soared in recent weeks, closing Wednesday around $866, near their record close of $883.09 in January. The stock fell less than 1% in after-hours trading after the company posted results.
Finding workarounds to parts shortages hasn’t come cheaply, however.
“We are seeing significant cost pressure in our supply chain,” Chief Executive Elon Musk said at the company’s annual shareholders’ meeting earlier this month. “The sheer amount of money we’re spending on flying parts around the world is just not great but hopefully temporary.”
Mr. Musk also suggested at the meeting that parts shortages were contributing to Tesla product delays. The company has postponed the rollout of its Cybertruck pickup by about a year. Production is now likely to start in late 2022. Output of the company’s long-delayed semitrailer truck, originally due in 2019, has been pushed back even further—to 2023.
“We were just basically limited by multiple supply-chain shortages, like so many supply chains of so many types, not just chips,” Mr. Musk said.
It isn’t known whether Mr. Musk, a mainstay of Tesla’s earnings calls, will make an appearance on Wednesday. The billionaire, who also runs Space Exploration Technologies Corp. and has complained about his workload, said in July that he would no longer be participating in such calls by default.
Tesla is aiming to lay the groundwork for growth by opening two new vehicle factories by the end of the year, one in the Austin, Texas, area, where the company is moving its headquarters; the other outside Berlin.
Tesla said it was in the process of fabricating its first preproduction vehicles in Texas and expected to receive final permit approval before the end of the year for its factory in Germany. The company said it aimed to start regular production of Model Y vehicles at both sites before year-end.
The company, meanwhile, is facing increased scrutiny of its advanced driver-assistance tools, which help with tasks such as navigating within a lane on the highway.
Last week, the National Highway Traffic Safety Administration, the federal auto-safety regulator, voiced concern that a lack of transparency related to such features—which don’t make vehicles autonomous—could undermine safety oversight. The agency opened an investigation into Tesla’s Autopilot driver-assistance system in August after a series of crashes involving Teslas and one or more parked emergency vehicles.
Tesla hasn’t responded to requests for comment about the probe. NHTSA, as part of its investigation, has asked Tesla to provide volumes of information about its advanced driver-assistance technology. The first batch of data is due to NHTSA on Friday.
Last edited by EZZ; 10-20-21 at 03:23 PM.
10-21-21 | 09:27 AM
#27
plus you've had the joy of owning the 3 for 3 years. 
but sure, if any of us sold everything and dumped it into a stock that's done great we'd all have a higher net worth, but life doesn't work like that.
i don't have much tsla, but glad i at least have some.
12-30-21 | 08:42 AM
#28
Lexus Test Driver
Joined: Jan 2007
Posts: 7,460
Likes: 228
From: CA
Interesting article on how Tesla was able to navigate the chip crisis. Enjoy
https://www.wsj.com/articles/how-elo...ge-11640860208
Tesla Inc. TSLA -0.36% has emerged as one of the auto industry’s biggest winners in a year plagued by semiconductor shortages and snarled global supply chains. It owes that success in some measure to its Silicon Valley roots.
Elon Musk’s electric-vehicle maker is poised to manufacture roughly 80% more vehicles this year than it did in 2020, analyst forecasts indicate, on pace for its fastest annual production growth since 2018. The global auto industry, hit hard by supply-chain disruptions, is expected to produce around 1% more vehicles than last year and 15% fewer than in 2019, according to IHS Markit.
Tesla has been able to keep production lines running in part by leaning on in-house software engineering expertise that has made it more adept than many rival auto makers at adjusting to a global shortfall of semiconductors, industry executives and consultants said. Chips are used in everything from controlling an electric motor to charging a phone.
Faced with shortages earlier this year, for example, Tesla was able to quickly rewrite the software necessary to integrate alternative chips into its vehicles, the company’s chief executive officer, Mr. Musk, has said.
In Tesla’s Model 3 sedan, a single group of semiconductors enables features such as speaker control and voice and gesture recognition that in many other vehicles would be controlled separately using more chips, according to a Bain & Co. study based on a 2019 Model 3.
Ganesh Moorthy, chief executive officer of semiconductor supplier Microchip Technology Inc., said electric-vehicle-focused producers benefit from being more rooted in technology than traditional car makers.
“They are more plugged in, in many cases, and I think as a result also have been able to be more flexible in what they have built,” he said.
Tesla didn’t respond to a request for comment about its chip-sourcing strategy.
Traditional auto makers often have let parts suppliers handle sourcing chips. Mr. Musk’s preference for making vehicle components in-house meant that Tesla had greater supply-chain visibility in some areas, having forged close relationships with semiconductor companies before the crisis hit, some semiconductor executives and analysts said. Tesla, for example, designed the computer that enables its advanced driver-assistance technology in newer vehicles.
“Anything where they decided to make something by themselves, well then they had to have a direct relationship with the semiconductor supplier,” said Nakul Duggal, who leads the automotive business of Qualcomm Inc., which designs chips and supplies Tesla.
The chip shortage traces back to late 2020, when demand for vehicles rebounded faster than expected from pandemic lows, catching auto makers by surprise.
Without enough semiconductors, car companies are on track to manufacture roughly 77 million vehicles globally this year, down around 9% from expectations in January, according to consulting firm AlixPartners LLP.
Tesla Chief Financial Officer Zachary Kirkhorn said in October that Tesla’s expertise in the chip industry and consistent messaging to suppliers had helped the company manage supply-chain challenges.
“We never reduced our production forecast with our suppliers as we’re adding capacity as quickly as possible,” he told analysts.
Tesla hasn’t been immune to supply-chain problems. The company has run factories below capacity and, in February, briefly shut down its Fremont, Calif., plant because of parts shortages. It also worked around shortfalls by building cars with missing parts that needed to be added back later, Mr. Musk has told employees, according to a person familiar with the matter.
Mr. Musk has cited the chip shortage in delaying the rollout of new models. Tesla’s long-awaited electric pickup truck and semitrailer truck, both of which had been slated to enter production this year, are now due to enter production in 2022 and 2023, respectively.
Traditional car makers are now becoming more chip focused. Ford Motor Co. and General Motors Co. last month announced pacts with semiconductor companies to develop computer chips.
Research firm Gartner Inc. forecasts that by 2025, half of the top 10 auto makers by market capitalization will be designing at least some of their own chips.
Meanwhile, the world’s embrace of electric vehicles—and Tesla’s rising valuation—have made Mr. Musk’s company a more attractive customer to some parts suppliers, executives and lawyers said.
Dan Sharkey, a Detroit-area attorney who represents automotive suppliers, said some of his clients are willing to do things for Tesla that they aren’t for other car makers. “They think they’re catching a rising star,” Mr. Sharkey said, adding that Tesla’s relatively small output can sometimes work in the company’s favor. “It’s sort of easy to say, okay, we’ll just take care of these little guys.”
Tesla is on pace to easily clear its target of increasing vehicle deliveries by 50% over last year’s total of nearly half a million. It put more than 627,000 vehicles in customer hands through the first nine months of the year. The company’s relatively small size—and increased demand for electric vehicles—has made it easier to sustain rapid growth. It also gave priority to getting vehicles to customers, even if they are missing a few parts.
Mo Siddiqui, who lives in Hamburg, Germany, said he received a text message from Tesla earlier this month advising him that, due to supply-chain problems, the roughly $70,000 Model Y compact sport-utility vehicle he had purchased might be delivered without some USB ports or wireless phone charging capability.
Mr. Siddiqui, 39 years old, was able to schedule the vehicle to be retrofitted within two weeks of picking it up. “I can live with that,” he said.
https://www.wsj.com/articles/how-elo...ge-11640860208
How Elon Musk’s Software Focus Helped Tesla Navigate Chip Shortage
Electric-vehicle maker is expected to manufacture roughly 80% more vehicles this year than it did in 2020
Tesla is on track to post its fastest annual production growth since 2018 despite parts shortages.
PHOTO: MICHAEL REYNOLDS/SHUTTERSTOCKTesla Inc. TSLA -0.36% has emerged as one of the auto industry’s biggest winners in a year plagued by semiconductor shortages and snarled global supply chains. It owes that success in some measure to its Silicon Valley roots.
Elon Musk’s electric-vehicle maker is poised to manufacture roughly 80% more vehicles this year than it did in 2020, analyst forecasts indicate, on pace for its fastest annual production growth since 2018. The global auto industry, hit hard by supply-chain disruptions, is expected to produce around 1% more vehicles than last year and 15% fewer than in 2019, according to IHS Markit.
Tesla has been able to keep production lines running in part by leaning on in-house software engineering expertise that has made it more adept than many rival auto makers at adjusting to a global shortfall of semiconductors, industry executives and consultants said. Chips are used in everything from controlling an electric motor to charging a phone.
Faced with shortages earlier this year, for example, Tesla was able to quickly rewrite the software necessary to integrate alternative chips into its vehicles, the company’s chief executive officer, Mr. Musk, has said.
In Tesla’s Model 3 sedan, a single group of semiconductors enables features such as speaker control and voice recognition, according to a study.
PHOTO: ZHANG PENG/LIGHTROCKET/GETTY IMAGESSemiconductor executives and consultants said Tesla, as a still relatively young car company, had the advantage of designing its vehicles from the ground-up, rather than adding parts in a piecemeal fashion over decades as many legacy auto makers have done. That allowed Tesla to consolidate systems, some of them said.In Tesla’s Model 3 sedan, a single group of semiconductors enables features such as speaker control and voice and gesture recognition that in many other vehicles would be controlled separately using more chips, according to a Bain & Co. study based on a 2019 Model 3.
Ganesh Moorthy, chief executive officer of semiconductor supplier Microchip Technology Inc., said electric-vehicle-focused producers benefit from being more rooted in technology than traditional car makers.
“They are more plugged in, in many cases, and I think as a result also have been able to be more flexible in what they have built,” he said.
Tesla didn’t respond to a request for comment about its chip-sourcing strategy.
Traditional auto makers often have let parts suppliers handle sourcing chips. Mr. Musk’s preference for making vehicle components in-house meant that Tesla had greater supply-chain visibility in some areas, having forged close relationships with semiconductor companies before the crisis hit, some semiconductor executives and analysts said. Tesla, for example, designed the computer that enables its advanced driver-assistance technology in newer vehicles.
“Anything where they decided to make something by themselves, well then they had to have a direct relationship with the semiconductor supplier,” said Nakul Duggal, who leads the automotive business of Qualcomm Inc., which designs chips and supplies Tesla.
SHARE YOUR THOUGHTS
What’s your outlook for Tesla in 2022? Join the conversation below.The chip shortage traces back to late 2020, when demand for vehicles rebounded faster than expected from pandemic lows, catching auto makers by surprise.
Without enough semiconductors, car companies are on track to manufacture roughly 77 million vehicles globally this year, down around 9% from expectations in January, according to consulting firm AlixPartners LLP.
Tesla Chief Financial Officer Zachary Kirkhorn said in October that Tesla’s expertise in the chip industry and consistent messaging to suppliers had helped the company manage supply-chain challenges.
“We never reduced our production forecast with our suppliers as we’re adding capacity as quickly as possible,” he told analysts.
Tesla hasn’t been immune to supply-chain problems. The company has run factories below capacity and, in February, briefly shut down its Fremont, Calif., plant because of parts shortages. It also worked around shortfalls by building cars with missing parts that needed to be added back later, Mr. Musk has told employees, according to a person familiar with the matter.
Mr. Musk has cited the chip shortage in delaying the rollout of new models. Tesla’s long-awaited electric pickup truck and semitrailer truck, both of which had been slated to enter production this year, are now due to enter production in 2022 and 2023, respectively.
Traditional car makers are now becoming more chip focused. Ford Motor Co. and General Motors Co. last month announced pacts with semiconductor companies to develop computer chips.
Research firm Gartner Inc. forecasts that by 2025, half of the top 10 auto makers by market capitalization will be designing at least some of their own chips.
Meanwhile, the world’s embrace of electric vehicles—and Tesla’s rising valuation—have made Mr. Musk’s company a more attractive customer to some parts suppliers, executives and lawyers said.
Dan Sharkey, a Detroit-area attorney who represents automotive suppliers, said some of his clients are willing to do things for Tesla that they aren’t for other car makers. “They think they’re catching a rising star,” Mr. Sharkey said, adding that Tesla’s relatively small output can sometimes work in the company’s favor. “It’s sort of easy to say, okay, we’ll just take care of these little guys.”
Tesla is on pace to easily clear its target of increasing vehicle deliveries by 50% over last year’s total of nearly half a million. It put more than 627,000 vehicles in customer hands through the first nine months of the year. The company’s relatively small size—and increased demand for electric vehicles—has made it easier to sustain rapid growth. It also gave priority to getting vehicles to customers, even if they are missing a few parts.
Mo Siddiqui, who lives in Hamburg, Germany, said he received a text message from Tesla earlier this month advising him that, due to supply-chain problems, the roughly $70,000 Model Y compact sport-utility vehicle he had purchased might be delivered without some USB ports or wireless phone charging capability.
Mr. Siddiqui, 39 years old, was able to schedule the vehicle to be retrofitted within two weeks of picking it up. “I can live with that,” he said.
12-30-21 | 11:09 AM
#30
Racer
Joined: Nov 2012
Posts: 1,970
Likes: 564
From: CA
Tesla's vertical integration is another example of why is is a better managed company. No other car company codes its own firmware. Vertical integration is a key reason Tesla's margins, approaching 30%, are the envy of the industry. Most companies build to a 7% gross margin. Tesla is 4 times better!
But don't take my word for it. Check the recent words of VW and Ford CEOs.
But don't take my word for it. Check the recent words of VW and Ford CEOs.