Tesla Motors Q2 loss of $293.2 million in the quarter, on revenue of $1.27 billion far exceeded analyst expectations. Tesla delivered about 14,000 vehicles during Q2, badly muffing its target of 17,000. CEO Elon Musk – against all evidence – that the company is on track to build 50,000 Model S and X vehicles during Q3 and Q4. The “true believer” stock is still trading in the $230 a share range, nonetheless.
Production or rather lack thereof is a now a huge issue because Tesla is supposed to start filling orders during 2017 for the less expensive Model 3 sedan that will be priced around $35,000. The company is also under scrutiny by National Highway Traffic Safety Administration because of a fatal accident last May in Florida of a Model S sedan with its Autopilot system engaged. The National Transportation Safety Board is investigating the liability of self-driving technology in that crash as well. There are substantial product liability and legal threats potentially in play for the financially fragile Tesla.
Pending the outcomes of those investigations, Tesla has three defenses for the misleadingly named Autopilot system:
- That Tesla Autopilot had been safely used in over 100 million miles of driving by tens of thousands of customers worldwide, with zero confirmed https://wilmetteinstitute.org/buy-soma-online/ fatalities and a wealth of internal data demonstrating safer, more predictable vehicle control performance when the system is properly used.
- That contrasted against worldwide accident data, customers using Autopilot are statistically safer than those not using it at all.
- That given its nature as a driver assistance system, a collision on Autopilot was a statistical inevitability, though by this point, not one that would alter the conclusion already borne out over millions of miles that the system provided a net safety benefit to society.
Solar City
Just over a month ago, Tesla made a proposal to purchase SolarCity creating what it claims is the world’s only vertically integrated sustainable energy company. Elon Musk claims solar and storage are at their best when they’re combined. “As one company, Tesla (storage) and SolarCity (solar) can create fully integrated residential, commercial and grid-scale products that improve the way that energy is generated, stored and consumed.”
Tesla is getting ready to scale its Powerwall and Powerpack stationary storage products. SolarCity is getting ready to offer next-generation differentiated solar solutions. By joining forces, the companies can operate more efficiently and fully integrate products, while providing customers with an aesthetically beautiful and simple one-stop solar + storage experience: one installation, one service contract, one phone app.
