Tesla Reveals The Number One Reason Owners Drive To The Service Center Is To Learn How NOT To Drive

Tesla doubled the size of its fleet over the last 12 months and it’s putting a lot of pressure on its service capacity.

The automaker revealed the number one reason owners visit service and it’s a surprising one: to learn how to use Autopilot. In the release of its Q2 2019 financial results, Tesla focused a lot on service.

The company has been growing its fleet so fast that it’s difficult to grow its service capacity at the same rate.

Truthy - 7/25/2019 1:52:16 PM

+11 Boost

Ha! A disastrous earnings report and you guys post a favorable article talking about the Tesla fleet growing so fast. Yes, because the model was introduced a year ago. Going forward, if there is a forward, the year-on-year comparisons will be a bit different.
I saw an interesting graphic today showing that over the last 6 quarters as COGS has decreased, the ASP has decreased faster. A nightmare scenario!

scenicbyway12 - 7/25/2019 2:54:50 PM

+3 Boost

Ditto,
Teslaspies

SanJoseDriver - 7/25/2019 8:49:48 PM

-3 Boost

Model 3 was introduced 2 years ago. Also, the $35k and $37k models that were not available last year are what brought down ASP. They made some big cuts to the higher level Model 3 trims and expect ASP to stay stable over the next couple quarters.

supermoto - 7/25/2019 2:37:52 PM

+11 Boost

Another horrible quarter at Telsa. The more cars they sell, the more money they lose.

Models S and X are dead. Solar is dead.

SanJoseDriver - 7/25/2019 8:46:33 PM

-3 Boost

$6.4 billion in revenue is not a horrible quarter. S/X is down 40%, Model 3 is up 150%, solar is flat. Loss is far less than Q1 and even with lower average selling prices, the margin is still 19%.

Truthy - 7/25/2019 3:06:57 PM

+10 Boost

They cut capex in half to try to show positive cash flow. It worked, but it is not a sustainable way to achieve this and never for a growth company.
The Audi, Porsche and other MB competitors are going to hit X and S sales harder still.
They have to keep lowering prices to keep demand up. It is hard not to see the coming crash.

dumpsty - 7/25/2019 4:45:06 PM

+4 Boost

this isn't new info. hybrid & EV loose money. but what if they can reduce pricing to sustain demand?

eventually, Tesla will need to partner(?) with a larger automaker to capitalize on scale of production for different markets.

supermoto - 7/25/2019 5:40:32 PM

+5 Boost

Dumpsty,

Reducing model prices = greater losses. Tesla is not a sustainable business. It's really more of a charity (selling cars for below cost).

Their entire business model is flawed to the core.

SanJoseDriver - 7/25/2019 8:51:15 PM

-3 Boost

Their prices dropped and their margin was stable, losses shrank significantly over Q1.

supermoto - 7/25/2019 9:57:50 PM

+4 Boost

And per the conference call, instead of "profitability every quarter going forward", profitability is nowhere in sight. If it wasn't for the Q2 capital raise (which Musk said repeatedly that Tesla did not need), Tesla would be declaring bankruptcy. Ch 11 is exactly what Tesla needs, though, to get rid of the un-surmountable debt burden.

Q3 will be a disaster.

SanJoseDriver - 7/26/2019 2:23:18 AM

-3 Boost

$5B - $2.5B is still $2.5B. They would not be declaring bankruptcy.