Tesla misses expectations, but says battery factory to come early

Tesla is slightly ahead of schedule with its gigafactory and now plans to begin producing batteries there by the end of 2016, according to the company’s fourth quarter shareholder letter. Previously Tesla said it would deliver batteries starting in 2017.

Construction of Tesla's gigafactory is underway.

Construction of Tesla’s gigafactory is underway.

Construction on the enormous factory’s structure began two months ago, according to the letter. Equipment installation will begin later this year.

But Tesla missed analysts estimates, which were expecting earnings of 32 cent per share for the quarter. Tesla posted a loss of 13 cents per share instead. As a result Tesla’s shares dropped close to 3 percent in after hours trading.

Tesla built 35,000 Model S vehicles over the course of 2014, but, as projected at the end of the third quarter, it wasn’t able to deliver all of them. Instead, 1,400 vehicle deliveries were pushed to the first quarter of 2015.

Tesla attributed the delivery delays to “one-time manufacturing inefficiencies” created by the introduction of new features and the dollar’s strong performance.

By the numbers:

  • Revenue for the fourth quarter (GAAP) was $957 million, up from $615 million for the fourth quarter in 2013.
  • Net loss (GAAP) was $108 million or $(0.86) per share, up from $16 million or $(0.13) per share in the same quarter in 2013.
  • Automotive gross margin (GAAP) for quarter four was 22 percent.

Tesla expects to deliver 55,000 Model S and X cars in 2015, compared to 35,000 in 2014. It expects to produce 10,000 of those in the first quarter.

Elon Musk: Tesla can make a few million cars a year by 2025

Electric car company Tesla’s stated long-term goal has been to make 500,000 electric cars a year by 2020, but on Tuesday at the Detroit Auto Show, Tesla CEO Elon Musk raised the bar even higher. He said in an onstage Q&A, (live blogged by the Verge), that he thinks Tesla can make a few millions cars a year by 2025.

[blockquote person=”” attribution=””]
“We’re going to keep driving our volume as high as we can because our goal is fundamentally to transition the world to electric cars.”[/blockquote]

Elon Musk, CEO of Tesla, unveils the dual engine chassis of the new Tesla 'D' model at the Hawthorne Airport October 09, 2014 in Hawthorne, California. (Photo by Kevork Djansezian/Getty Images)

Elon Musk, CEO of Tesla, unveils the dual engine chassis of the new Tesla ‘D’ model at the Hawthorne Airport October 09, 2014 in Hawthorne, California. (Photo by Kevork Djansezian/Getty Images)

In [company]Tesla[/company]’s most recent earnings, the company was estimating that it would ship about 33,000 vehicles in 2014, and that’s with selling the Model S only. Tesla’s Model X goes on sale later this year, and down the road its third car, the Model 3, will launch as well.

Musk told the interviewer that by 2020, with the Model 3 on the market and with 500,000 cars sold, it will be a safe bet that Tesla will start turning a profit. Musk said to make the Model 3 work, economically, Tesla has to make everything with the car cost about half as much.

Tesla’s latest Model S software update gets better sleep mode, Wi-Fi access

http://green.autoblog.com/2013/08/17/tesla-model-s-firmware-update-brings-sleep-creep-changes/
Electric car company Tesla (s TSLA) has quietly released the latest over-the-air firmware (5.0) update for the Model S, reports Autoblog Green, and it comes with a better sleep mode, as well as other enhancements like the ability for the car to connect with Wi-Fi networks.