Sources Say Tesla Model Y Will Be Built In Fremont, California – CleanTechnica

Sources Say Tesla Model Y Will Be Built In Fremont, California - CleanTechnica
Tesla Model S Refresh With Minimalist Interior and Model 3 Motors Coming This Year: Report
Tesla is rejiggering its car factory in Fremont, California, to make way for production of the Model Y crossover SUV, as well as a refresh of the Model S with a more minimalist interior design and longer-range battery, according to several current and former employees.

These initiatives could raise costs again for Tesla, just as CEO Elon Musk has vowed to review every 10th page of outgoing expenses, personally. But starting up production of the Model Y in 2019 allows Tesla to tap into the growing SUV segment sooner rather than later, while a Model S refresh would help it maintain or grow its share within the declining market for luxury sedans.

Tesla: Musks Twitter Warning

The company has barely begun to place orders for new equipment to manufacture the Model Y, employees said. And while Musk has suggested that Tesla would probably make the crossover SUV in Fremont, Tesla hasn't officially announced that preparations in the factory had begun.

What is Musk replying “Yup” to? I would guess that hes talking about CleanTechnicas point that everyone overreacted to the leaked e-mails from recent weeks. However, lets not forget that weve seen before, like in Q1 where orders were supposedly so high that Teslas system crashed, yet there was a big miss when they actually announced the numbers. If Tesla were to miss, it brings up the question of how truthful management was when reiterating guidance to sell the latest capital raise. In the next week, well get a variety of estimates for Tesla deliveries in the US/Europe in May, which will make it a bit more clearer on what Tesla may announce in early July.

Mark Cuban told Elon Musk to bite your tongue in dealings with SEC

Making way for Model Y production in Fremont will require Tesla to combine Model S and Model X production into one line, according to the insiders. These lines at the car plant take up a significant amount of floor space today, at least partly because the S and X are each made with a lot of parts. The Model X is particularly complicated to build — its features include falcon wing doors that open up, rather than out — leading Musk to liken it to a "Faberge egg. "

Read Tesla CEO Elon Musks latest email urging employees to improve vehicle deliveries

In addition to the Model Y, Tesla is planning on a full refresh of the Model S, which employees say will likely include an interior with the minimalist look and feel of the newer Model 3, the same drive units and seats used in the higher-end Model 3, and a battery that delivers 400 miles of range on a full charge.

Referring to the Tesla founders tussle with the SEC over the use of his Twitter, Cuban reflected on his own battle with the regulator in 2008 and said that while Musk was under a different microscope, he just had to try to bite your tongue no matter how hard it is, because they dont care.

Mark Cuban told Elon Musk to bite your tongue in dealings with SEC

Tesla has recently been canceling factory tours because of "upgrades" being made to the factory, according to Musk, who didn't say exactly what those upgrades entailed.

Cuban stressed that the SEC was only in it for skin on the wall, because theyre — like, in my matter, there were people who left the SEC before the conclusion when I kicked their ass in the trial I had.

Meanwhile, production has already slowed on the current S and X models. In the first quarter of 2019, Tesla laid off a portion of its Model S and X production staff and cut hours for those who remained, as CNBC previously reported. Today, Tesla only manufactures the S and X on day shifts during the week in Fremont. There is no weekend or nighttime production of those cars today, according to the current and former employees.

Last week, Tesla cut prices on its Model S by $3,000 and Model X by $2,000, and rolled out a free supercharging incentive to entice customers, causing some analysts to question whether demand is softening for these older, higher-priced models. This follows a set of upgrades in April that improved the driving range and charging speed for both cars.

Sales of Tesla's electric vehicles hit $3.72 billion in the first quarter which represented a 41% drop from the fourth quarter of 2018, when the company generated $6.32 billion in automotive revenue. In its first quarter vehicle deliveries and production report, Tesla said it delivered 63,000 vehicles during that quarter, down from a record 90,700 in the fourth quarter of 2018.

On investor calls recently, Tesla reiterated guidance that it would deliver 90,000 to 100,000 cars in the second quarter of 2019, and at least 360,000 in 2019. It has not said how many of these would be Model S, X and Model 3 vehicles or, eventually, Model Ys.

We also need to address the total cost of getting a car from our factory to the customer. Last quarter, there were many expedite fees and routing inefficiencies that led to higher than expected delivery costs. This makes it much harder for Tesla to break even.

African born-billionaire Elon Musks 6 productivity rules, including walk out of meetings that waste your time

Tesla shares fell more than 10% last week on investors' concerns over demand, profitability and the impact of U.S.-China trade clashes on the company. They recovered slightly after an email leaked in which Musk promised that Tesla was on target to meet its second-quarter goals.

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

I dont know him very well… Ive talked to him a couple of times. [But] I like him because hes competitive, Cuban said of Musk. Hes obviously got you know a genius spirit and mind for innovation, which I love. But hes also very competitive. And when youve got a bunch of bureaucrats trying to come at you in a world where there arent bright line guidelines, thats tough.

CNBC reports the Model S refresh will be modeled after the Model 3 in many ways, with a new minimalist interior like the one that received a lot of attention on the smaller car, premium seats from the Long Range and Performance Model 3, and the new drive units from the Model 3, including different motors, inverter and gearbox.

Referring to the Tesla founders tussle with the SEC over the use of his Twitter, Cuban reflected on his own battle with the regulator in 2008 and said that while Musk was under a different microscope, he just had to try to bite your tongue no matter how hard it is, because they dont care.

Tesla Is Still Using the Phrase Full Self-Driving to Describe Its Cars Even Though Its Wrong

Correction: This article previously stated the max range was 345 miles, which is only for the Performance trim of the Model S.

The CNBC report also goes into some alleged details on the Fremont factorys preparations for producing the Tesla Model Y, though Tesla has yet to announce any significant details of its plan for production. Heres more on that from CNBC:

The man, of course, is Eike Batista, who once famously told Mexicos Carlos Slim to watch out because, he said, he was poised to surpass him as the worlds wealthiest person. Slim has since faded to ninth on the list, Batista to oblivion. Now, hes staging a comeback. Or trying to, at least. Hes also got lots of ideas for a man on the hot seat right now that he sees as something of a kindred spirit, Tesla CEO Elon Musk, and hes quick to spew criticism at those he feels did in his empire.

These initiatives could raise costs again for Tesla, just as CEO Elon Musk has vowed to review every 10th page of outgoing expenses, personally. But starting up production of the Model Y in 2019 allows Tesla to tap into the growing SUV segment sooner rather than later, while a Model S refresh would help it maintain or grow its share within the declining market for luxury sedans.

Both have attacked short sellers with caustic tweets and made market-moving announcements on social media, then came under scrutiny from regulators for doing so. (Brazils securities commission this week banned Batista from running publicly-traded companies for seven years and slapped him with a 536-million-real ($132 million) fine.) They also regretted having taken their companies public once markets turned against them, and suffered high-profile staff departures.

The company has barely begun to place orders for new equipment to manufacture the Model Y, employees said. And while Musk has suggested that Tesla would probably make the crossover SUV in Fremont, Tesla hasnt officially announced that preparations in the factory had begun.

The conversation continued the next day at his office, a more modest space than he occupied in his heyday, but still offering a view of Rios iconic Sugarloaf mountain and decorated by trophies from the past. A surf board once ridden by Gabriel Medina, Brazils two-time world champion, rested in a corner. A title belt given to him by a mixed martial arts fighter hung on his wall, and a coffee table featured a pair of samurai swords that were also a gift.

Making way for Model Y production in Fremont will require Tesla to combine Model S and Model X production into one line, according to the insiders. These lines at the car plant take up a significant amount of floor space today, at least partly because the S and X are each made with a lot of parts.

Chief Executive Elon Musk has suggested that Model Y would be built in Fremont, but Tesla hasnt officially announced that plan. Speaking on Teslas Q1 2019 earnings call, Musk said the company is still trying to make a close call on whether Model Y vehicle production should be in California or Nevada, referring the companys Fremont factory or Gigafactory 1 in Sparks, Nev.

I think what CNBC means by the rather obvious statement that the S and X are each made with a lot of parts is that theyre each made with a lot of different parts. This makes combining the existing production lines difficult, though it shouldnt be impossible. Streamlining everything could save Tesla a lot of money.

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Well likely hear more about Teslas plans for the Model Y and its Fremont plant from Elon Musk during the second quarter earnings call later this summer.

Tesla CEO urges employees to catch up to hit delivery record

The Tesla Model Y Came With No Surprises and Thats the PointTesla is Updating Battery Software After Model S Catches Fire in Hong KongElon Musk Says Tesla Needs Financial Micromanagement or It Will Go BrokeAbout the authorJustin T. WestbrookJustin T. WestbrookStaff Writer, Jalopnik

The fallout for Tesla was greater than what one would expect from just a bad analysts opinion, however. In a note released by Jonas earlier in the week, he dropped his bear-case price target for Tesla from $97 to a mere $10 (yet didn’t change the overall price target). This amount was so far removed from reality that even Musks nemesis Jim Cramer called the number really insane. Nonetheless, that $10 target received enormous traction as reporters of every type picked up and repeated the $10 price target story. Predictably, a copycat really insane worst-case target soon followed, this time from Citigroup, as it gave a $36 target which was likewise picked up by reporters. Such ridiculously low targets turned out to be a truly effective form of FUD, however, and those of us who share Tesla stock information with friends and family members were deluged with questions from worried stockholders ready to sell. If the goal was to drive down the stock price, it worked.


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