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Musk Quote: The company still has a long way to go before its vehicles can travel without humans taking the wheel.

Musk Quote: The company still has a long way to go before its vehicles can travel without humans taking the wheel.

While many were hopeful, I think most rationale people realized that full self driving was still years away.

Musk finally succumbed and admitted as much in this article...

https://www.yahoo.com/news/record-sales-push-tesla-2nd-212747263.html

Great that Tesla is profitable. Great day for stock holders.

While I would love a Fully Autonomous vehicle, as I've stated for years in these forums, knew it would be a LONG LONG time before it became a reality, despite Musk promising that we were only a couple of years away from it 4 - 5 years ago! No disappointment since I am realistic in my expectations and this news is absolutely no surprise. The tech required to release these cars on their own is NOT EASY, clearly. Beyond that, happy to see Tesla so successful. My one hope, is they take some of their newfound profits and invest them into improving customer service to be closer to what it once was.

Overall, all very good news for Tesla.

vmulla | January 29, 2020

What about robo-taxis?

82bert | January 29, 2020

Unfortunately, I missed the earnings call for the first time in awhile. However, that’s not a quote from Musk per the link you sent. Anyone listen in and care to clarify what he said regarding this?

teslamazing | January 29, 2020

Flagged.

rdavis | January 29, 2020

I’d say it’s more a meaning of words thing.

Yes, fully autonomous cars that don’t need human intervention are a ways out. A lot due to regulatory approval. But FSD features will be complete well before that date. The car driving itself on interstate and secondary roads with the requirement of human attention is not far off at all.

vmulla | January 29, 2020

teslamazing | January 29, 2020
Flagged
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Why?

teslamazing | January 29, 2020

For double posting ofc

vmulla | January 29, 2020

teslamazing | January 29, 2020
For double posting ofc
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Oh ok

teslamazing | January 29, 2020

"So Tesla is starting to make significant money repairing the cars coming out of warranty. Servicing vehicles and charging might be two areas of strong profits for Tesla"

How much money does ICE manufacturers make servicing their cars?

dhankx | January 29, 2020

While we paid for full self driving whether or not we ever experience it is up for grabs. However, I believe what we do get is far superior to what anyone else has achieved thus far - especially for the highway. You have to remember that Tesla's approach is to have an affordable solution that can react to real time situations - that's an incredible challenge. By affordable that means our camera approach and real time that means software that can figure it out. Expect iterative improvements over time with bugs in the middle - keep your hands on the wheel and hang on for the ride.

akgolf | January 29, 2020

Poor short shorts.

M3phan | January 29, 2020

When he says the company has a long way to go, that doesn’t have to mean years and years. Don’t think Musk “succumbed” to anything.

teslamazing | January 29, 2020

"They don't service their vehicles the dealers do."

OK, then how much do the dealers collectively make?

M-A-B-MCMLXXX | January 29, 2020

“ Be interesting if techs trained on fixing EV's open up repair shops”

It wouldn’t be interesting. It’s inevitable.

Bighorn | January 29, 2020

There already are independent Tesla repair shops popping up all around the country.

FactDoc | January 30, 2020

I feel bad for shorts

jamesc | January 30, 2020

That doesn't mean that monitored full self driving won't continue to improve, just that a car with no driver is unlikely in the short to medium term.

jallred | January 30, 2020

Servicing vehicles and charging might be two areas of strong profits for Tesla.-fish

Fish said that charging was a billion dollar plus cash cow for Tesla. Now it “might” be.
Sounds like an oscillating opinion.

There is no evidence in earning numbers that charging is a profit center for Tesla.

Sarah R | January 30, 2020

@Maxxer My heart pumps borscht for the Tesla shorts. They has a thesis. They have been proven wrong. They're heeded for ruin. That's how the game is played. Borscht.

Varricks | January 30, 2020

I don't know if FSD will take years yet. The amount of driving being gathered by Tesla machines is huge. But I swear that every day I run across some situation from simple line deviation to cars apparently being driven by gibbons that I'm certain the computers couldn't guess how to deal with. Hell, I don't know how we figure out how to deal with much of it, for that matter.

rdavis | January 30, 2020

Varricks | January 30, 2020
I don't know if FSD will take years yet. The amount of driving being gathered by Tesla machines is huge. But I swear that every day I run across some situation from simple line deviation to cars apparently being driven by gibbons that I'm certain the computers couldn't guess how to deal with. Hell, I don't know how we figure out how to deal with much of it, for that matter.
___________________________________

The great thing about the nero net.

The car is always in autonomous mode in the background, so when you deviate from what it would have done it sends that data to the mothership for review. It then learns and sends it out to the fleet. This is why having all the cameras and functions for FSD on every car is important to Tesla. They learn even if you don't have not bought FSD nor engaged Autopiliot. It's a wonderfully smart way to go about it...

Big_Ed | January 30, 2020

Strongly doubt Tesla makes a profit on services. There is little scheduled maint to overcharge on, and the majority of the fleet is still covered by warranty. Plus they are still investing in facilities, equipment, and training, all of which costs money. Almost certainly a net loss at this point.

Have long heard that services are a big profit center for ICE dealers, but that is because they overcharge owners for scheduled services and get paid by the manufacturer for warranty repairs.

teslamazing | January 30, 2020

@BigED exactly. Fishy is known to always take something positive and manipulate it into something negative.

apodbdrs | January 30, 2020

What services, the cars require little or no maintenance. I will be taking my car to Costco for tires, balancing, etc., and I am sure many others will take their cars to their mechanic of choice that is do Tesla, do it themselves. Sure there a few issues that may arise that may require Tesla but not like you see in an ICE car.

No where in any of the earning discussions have I even seen a word about Tesla service even a minor contributor. Some people just love to speculate.

teslamazing | January 30, 2020

You see fishy is quiet after I asked what I asked. Too funny.

teslamazing | January 30, 2020

TSLA up almost 200% since June.

Joshan | January 30, 2020

last service appointment I made to replace a part my wife broke took 3 days... as usual ignore anything by the resident internet troll.

teslamazing | January 30, 2020
Bighorn | January 30, 2020

Wow, the lies have taken on exponential growth curiously in line with the SP.

jallred | January 30, 2020

Tesla made $580M on car repairs in Q4 report. -fish

Wrong. $580M only shows up twice in the Q4 report. One is under liabilities for noncontrolling interests in subsidiaries.
The other one is under revenue category of "Services and other". The use of the word "service" has confused you.

"Services and other" does not mean "car repairs and soda machine money". It means revenue Tesla got by providing services to people and all other revenue that they didn't categorize.

But let's put it another way to show how wrong your statement is. So far Tesla has sold somewhere around 650000 vehicles. If in the last quarter, "Tesla made $580M on car repairs", then they made $892 per car that they ever built (including a huge majority still under warranty) in just the last quarter. Or $3500 per car per year.

When you make crap up, it ought to be at least reasonable.

jallred | January 30, 2020

Wonder where your $1B+ revenue for supercharging is? Or solar roof install? Or industrial and government power installations? Or merchandise? Or acceleration boost sales? These charts are telling you REVENUE, which means all the money they make is in there. Even if they reinvest it back, it is still revenue.

teslamazing | January 30, 2020

Wow ?

teslamazing | January 30, 2020

Wow ! *

Magic 8 Ball | January 30, 2020

Teaching financials to a fish, that's funny right there.

TabascoGuy | January 30, 2020

One fish, two fish...

teslamazing | January 30, 2020

Eyup. Too funny.

TeslaTap.com | January 30, 2020

Generally, a new car dealer makes 20-30% of profits on selling cars and makes the balance on repairs. Keep in mind they make money from both warranty work as well as out of warranty work. The manufacturer pays them to do warranty work, although at a lower rate than out of warranty work.

Dealers are a very profitable business, most now part of a dealer network. For example, in 2017, AutoNation has 258 dealerships and brought in $21 billion in revenue. All of the top 35 dealer groups brought in at least 1 billion in revenues. Gives you an idea of the kind of power they yield in state legislators.

FISHEV | January 30, 2020

"Wonder where your $1B+ revenue for supercharging is?"

Say 3,000 chargers in US. Say 50% utilization with big urban chargers on high use and smaller rural travel chargers hardly used. 1,500 chargers 24/7.

Each charger can do 140kW at 10% charge, figure 30 minutes per car for 50kW of charge at $14.00, 40 charges in 24 hours (48 but take 20% for moving cars) would be $560 per charger per day x 1,500 $560,000 per day x 365 = $840M. Tweak for $1B or $750M as you please.

And should be a nice profit to it as Tesla sells for $0.28 per kWh while average industrial cost, Tesla's rate, is likely $0.10 a kWh. And the customers do all the work and pay in cash.

The growing profits from service and charging were what made Tesla profitable in Q4.

TabascoGuy | January 30, 2020

"The growing profits from service and charging were what made Tesla profitable in Q4."

Yeah, it had nothing to do with getting better at making the best EV's on the planet.

Joshan | January 30, 2020

It is funny watching a moron who think 10 x 12 = 1200 give financial analysis on a billion dollar company. Ironic actually...

jallred | January 30, 2020

"Wonder where your $1B+ revenue for supercharging is?"

Where is it on the Q4 earnings?

The growing profits from service and charging were what made Tesla profitable in Q4.-fish

Should be easy to point it out in the earnings. Please show us.

teslamazing | January 30, 2020

“Each charger can do 140kW at 10% charge, figure 30 minutes per car for 50kW of charge at $14.00”

The hell?? I pay about $10 from 40 miles SOC to 295 ...

Joshan | January 30, 2020

Publicly traded company and every dollar must be accounted for. But if FISHEV says it is not accurate, he must be correct, right? LOL such a moron.

teslamazing | January 30, 2020

Idiot.

Bighorn | January 30, 2020

FISH alert. If there are numbers, or words, you know it’s wrong.

jallred | January 30, 2020

The growing profits from service and charging were what made Tesla profitable in Q4.-fish

Revenue for "Services and Others" = $580M
Cost of revenue for "Services and Others" = $674M

There are NO profits in "Services and Others"!

jallred | January 30, 2020

If you send me $674, I'll send you $580. Think of all the money you will have.

Bighorn | January 30, 2020

A little knowledge...

jallred | January 30, 2020

Total Automotive Revenue = $6368M
Total cost of Automotive Revenue = $4934M

Profit due to Automotive = $1434

Gross profit for Tesla = $1391

Percentage of profit due to automotive = 103%

jallred | January 30, 2020

Crickets.

teslamazing | January 30, 2020

I absolutely do not understand his SC cost calculations.. no person pays $14 for a 30 min session at a 150kw SC.

No one.

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