Huge announcement!!!

Huge announcement!!!

Directly from Facebook:

SUNDAY, MARCH 31, 2013
Tesla Motors announced today that sales of its Model S vehicle exceeded the target provided in the mid-February shareholder letter. As customers who note their Model S serial number this weekend will realize, vehicle deliveries (sales) exceeded 4,750 units vs. the 4,500 unit prior outlook. As a result, Tesla is amending its Q1 guidance to full profitability, both GAAP and non-GAAP.

“I am incredibly proud of the Tesla team for their outstanding work. There have been many car startups over the past several decades, but profitability is what makes a company real. Tesla is here to stay and keep fighting for the electric car revolution,” said Elon Musk, Tesla Motors co-founder and CEO. “I would also like to thank our customers for their passionate support of the company and the car. Without them, we would not be here.”

Also being announced today is that the small battery option for the Model S will not enter production, due to lack of demand. Only four percent of customers chose the 40 kWh battery pack, which is not enough to justify production of that version. Customers are voting with their wallet that they want a car that gives them the freedom to travel long distances when needed.

The customers who ordered this option will instead receive the 60 kWh pack, but range will be software limited to 40 kWh. It will still have the improved acceleration and top speed of the bigger pack, so will be a better product than originally ordered, and can be upgraded to the range of the 60 kWh upon request by the original or a future owner.

Tesla is also revealing a small Easter egg today: all 60 kWh cars have been and will be built with Supercharger hardware included. Tesla is taking a slight cost risk that ultimately all customers will want to buy the Supercharger upgrade and receive unlimited, free long distance travel for life. Even for those that never drive long distances, this will improve the resale value of their car to people that do.


Tesla Motors' (NASDAQ: TSLA) goal is to accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars. California-based Tesla designs and manufactures EVs, as well as EV powertrain components for partners such as Toyota and Daimler. Tesla has delivered almost 10,000 electric vehicles to customers in 31 countries.

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Forward-Looking Statement
Certain statements in this press release, including statements regarding the expected profitability of the company, the availability of vehicle features and options and the Supercharger network, are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected. Various important factors could cause actual results to differ materially from those in the forward-looking statements, including the risks and uncertainties identified under the sections captioned “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results Of Operations” in Tesla’s Form 10-K filed on March 7, 2013. Tesla disclaims any obligation to update information contained in these forward-looking statements.

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DJung | March 31, 2013

is this the HUGE announcement Elon was eluding on twitter or is there another big announcement on Tuesday?

DJung | March 31, 2013

Aw shucks I meant Alluding to not eluding. ughh typos

shaneosullivan1 | March 31, 2013

Hmm, smells like an April Fools prank. But a well written one :-)

atlg8or | March 31, 2013

Elon subsequently tweeted that Tuesday news is still to come and arguably more important.

tommers | March 31, 2013

"all 60 kWh cars have been and will be built with Supercharger hardware included"

Would love details on what point this began?

tommers | March 31, 2013

Has anyone who didn't order Supercharger hardware plugged in a 60kWh and found it already charged?

negarholger | March 31, 2013

It is software enabled. You have to buy the option.

tommers | March 31, 2013

Kleist, do you have more info on this? That's great to hear because I actually regretted not adding that option. I still figure I'll use my wife's hybrid for rare really long trips, but as I've realized my 60 kWh doesn't go as far as I imagined when I bought it and it will be really nice to have supercharger access for driving to places that are around 70-80 miles away without wondering if I'll have enough wiggle room.

negarholger | March 31, 2013

I think to remember one video J.B.Straubel commenting all MS have the SC hardware build in and they were glad to have made that decision earlier. ( makes sense because hardware is just a couple of wires and it would be stupid in production to have different versions exposing for errors in assmbly - very expensive to correct later )
IMO the 60 kWh didn't have SC initially is two fold: first it was not priced in and second TM was not sure the battery could handle the SC power without serious degradation.
SC is not like your outlet at home. SC is powered down unplugged or when you plug it in and only engages when it gets the correct signals from the battery ( takes about 5 sec for the SC before it slowly ramps up voltage and amps). So it is easy to have it enabled / disabled by software.

alcassfast | April 1, 2013

Hmmm, yes. Is it common to make an announcement on a Sunday?

shop | April 1, 2013

No. There aren't many companies that make major announcements late Sunday evening...

negarholger | April 1, 2013

It is on the Tesla site... Do you think the site has been hacked ?

Brian H | April 1, 2013

Press release, no 40s, just software-limited 60s. All cars have SC hardware installed.

teslaver | April 1, 2013

Did TM just create an opportunity to earn with this announcement? Something like pay per use range extension for 40's users who cannot pay for 60's yet...?
nevertheless exciting times ahead for TM!

Damian | April 1, 2013

I am afraid the only announcement that would reallly interest me s a twofold one. Elon is correct about the "passion" his supporters have expressed. It tends to blind one to drawbacks, some minor some major. I am hoping this announcement is not intended to pull interest in the drawbacks away and thus makes those of us who have found significant reasoning flaws even less heard than we already are. I assume trying a third time to post the same information will be grounds for deletion again, so no point in trying. If anyone had read my post prior to its deletion, if you would post it here that would at least rekindle my belief in this effort, which I had had from the very beginning. (Being silenced does not leave a gret taste in one's moth).
At any rate, I would suspect that an out and out significant announcement will not include a major new find, for example that the well known effort to triple the mileage attained by the battery research now in progress has been obtained (or is it attained). That degree of significance would probably sour those who have already bought, unless some of the profits would go to free upgrades.
As to the kind of facts I found, try Googling EV vs Hybrid that get mre than 34 mpg while driving exclusively in the Colorado/Rockies electric grid. I didn't think it was significant enough for me to be deleted, but evidently even a somewhat minor negative is seen as too threatening. I did not think it was threatening and was a strong supporter in the beginning, but that has left a bad taste in my mouth. Evidently PASSION can trump facts and will tend to make the Tesla Motors' disclaimer on "forward" thinking "facts" have even less impact than it already does. Frankly , I hope I am wrong. I do not intend to drive on the Colorado grid nor buy my TEsla anywhere near the Colorado electric grid, and besides, that is not ELon's fault. I believe in the EV It's just a surprise to me that he would bury my blog so deeply. When I brought this to his attention in an earlier blog under the Model S Forum, the response I got was not that they were deleting because of what I was saying but because of who I am. That is totally crazy. I am just an avid reader of as many sides to this issue as I can get my hands on and simply was hoping to arm those other supporters with facts before they could become blown out of proportion.
Oh well. Hooray for Passion!

Jolinar | April 1, 2013

wow, that is great announcement, keep good work Tesla.

Vawlkus | April 1, 2013

TBH, that's a little dissapointing. I know it's a sound business decision, but it kinda feels like admitting the low end battery couldn't be made for some technical reason, and that doesn't sit well with me. Especially since Tesla has already done wonders with the 60 and 85 kwh packs, and just the design of Model S itself.

Meh, I wasn't planning on getting anything less than the 85 myself in a year or three, so it won't mean anything in the grand scheme of things to come.

Logical_Thinker | April 1, 2013

@Damian, you are about as clear as mud in what you are saying. I do think that if Tesla gets some ultra durable low cost ultra high capacity instant-recharging ultra-capacitors....

IF. Then based on Tesla's approach to date, I'm confident they will reward their early adopters with significantly- discounted upgrades.

Vawlkus | April 1, 2013

Damian: something to think on: what if you're right, and your guess being 'suppressed' is intended to make sure the announcement is a surprise?

hnashif | April 1, 2013

@Vawlkus: Or to better position GenIII vehicles.

EVTripPlanner | April 1, 2013

Dropping the 40 since only 4% signed up for it is validation of the car's target market: this is a performance luxury sedan, not meant to compete against lower end EVs, but higher end ICE cars...and it does it well. What has made the Model S successful? Brilliant execution, yes, but it started with contrarian market-targeting. Why make a higher-priced economy car...those buyers are price sensitive and the extra cost is important to them. Those that can afford the extra cost want a car they WANT to drive. That is what made me spend more than 2x what I've ever spent on a car before on my Model S. It might not be entirely perfect, but it is the best car I've ever had and this is only version 1.0! Wish I'd bought more stock...

My review at
Check out the evolving "Route Energy Calculator" at http://EVTripPlanner/planner

carlk | April 1, 2013

@Vawlkus It has nothing to do with technical issues. The 40kWh battery pack uses older technology and cheaper cells. Might even be the same as ones used in the Roadsters. The cost advantage does not exist anymore if the volume is low, especially when you need to go through the same safety test and certification process with the different battery pack. 85 and 60 kWh uses the same battery pack and cells. The capacity of the latter is reduced simply by substituting some cells with dummy cell. No additional safety test is needed for that.

olanmills | April 1, 2013

What they didn't make clear is whether you will still be able to order the 40 kWh option going forward. I would expect not, but the option is still listed on the Options & Pricing page.

Mark22 | April 1, 2013

@Olan, the 40kW now shows 'unavailable' in the 'design' part of the website.

drp | April 1, 2013

I heard that everyone with an S gets an X for half price...soon to be announced!

OK, not really...

shop | April 1, 2013

Elon speaking live tomorrow at 2pm PDT. Should be fun listening!

oildeathspiral | April 1, 2013

Damian, Elon tweeted that tomorrow's announcement was about HIM putting HIS money where HIS mouth is. This doesn't seem to fit your thoughts on what announcements(s) would interest you.

"When I brought this to his attention in an earlier blog under the Model S Forum, the response I got was not that they were deleting because of what I was saying but because of who I am."

Who are you?

Damian | September 15, 2013

Logical thinker. Yes without the original article (which was no longer allowed to exist) my statement is "clear as mud". Here are some findings from the article, so that you may understand better what I was getting at:

"We found:

In 39 states, a high-efficiency, conventional gas-powered hybrid, like the Toyota Prius, is better for the climate (produces fewer total “lifecycle” carbon emissions) than the least-polluting, all-electric vehicle, the Honda Fit, over the first 50,000 miles the car is driven.
In 26 states, a plug-in hybrid is the most climate-friendly option (narrowly outperforming all-electrics in 11 states, assuming 50:50 split between between driving on gas and electric for the plug-in hybrids), and in the other 24 states, a gas-powered car is the best. All-electrics and plug-in hybrids are best in states that have green electrical grids with substantial amounts of hydro, nuclear and wind power that produce essentially no carbon emissions. Conventional hybrids are best in states where electricity comes primarily from coal and natural gas.
For luxury sedans, in 46 states the gas-powered Lexus ES hybrid is better for the climate than the electric Tesla Model S, over the first 100,000 miles the car is driven.


Without the original article, anything would sound muddled I expect.

SunCoulombs | September 15, 2013

Actually there's also still more freedom with hybrids than with all-electrics, but that may change in the course of time.

jchangyy | September 15, 2013

Does the article mention anything about recycling the battery? what about processing oil for? is that carbon free?

JOHN HOLLINGSWORTH | September 15, 2013

Does it account for the energy it takes to refine crude to produce gasoline, then transport the gas to distribution centers then truck to gas stations, then power the station and pump the gas. An MS can go 20 miles on the energy used just to produce a gallon of gas. The ICE then would need to burn the gallon to go the 20 miles.

The battery I recyclable, but as long as we're on recycling don't forget the 6 quarts of oil you need to change every 3 months, the various hoses and belts that need replacing, the oil filter that is not recycled, etc.

Most of these so called studies showing how an EV has a bigger carbon foot print leave out a lot of factors on the ICE side while including every possible factor on the EV side.

shop | September 15, 2013

And they use other tricks like assuming a 50,000 mile service life on the battery, which is just plain lying.

Damian | September 27, 2013

Good points JH. I don't know if these were included or not, but if not, this bias you pointed out I completely overlooked. Thanks for the clarification.