Tesla Earnings: Can Musk Deliver 35K Cars in 2014?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Aug. 1 (Bloomberg) -- Tesla posted second-quarter sales of Model S electric sedans that matched analysts’ estimates as the company began deliveries to China. Julie Hyman and Alix Steel report on “In The Loop.” (Source: Bloomberg)

Will be the friction for vehicle delivery.

It is 35,000 for this year adnnd 100,000 annually by 2015. that is the numbers that investors have glommed onto.

Can they get there?

Can they even get there this year?

The company came in with deliveries of 7600 for the quarter that just past.

They're also predicting 7800 for the coming quarter.

It would still need an acceleration to 13,000. a lot of people are buying cars for the holidays and the final quarter of the year.

You're looking at a substantial acceleration in supply, production, and demand to get that number.

Then, obviously, next potential increase to get to 100,000. deliveries are what people are focusing on.

In terms of the earnings number -- the company posted a net loss overall.

You get $.11 per share, which is above the average estimate.

We have seen a lot of gyration in the shares.

People look through the different numbers and try to figure out how to get to that delivery number.

Can they get that delivery number?

That depends on this factory, right?

Yeah.

Elon musk wants to pound out 100,000 cars.

If you look behind it, what needs to happen is they need to lower the price of the batteries.

His goal is to reach 200 kilowatts per hour.

That is the energy you can store the battery.

The cheaper it is, the bigger the battery can be.

The cost is not go up.

The tes;a can go farther and the cost is the same.

That makes it cheaper for u.s. the consumer.

That is the overall goal here.

Morgan stanley estimates that by 2028, the global fleet of 7.2 million could actually power all of mexico.

That is how much charge is expected to be coming from these batteries.

Pretty staggering, right?

They may want to negotiate with him.

This factory has broader implications than just making batteries for cars.

That could change the entire store system.

It has enormous risk.

It would surely transform the entire energy landscape if he is able to do something like this.

These estimates even exist on something that is not built yet.

He said they broke ground.

The construction pad is done.

They have not begun construction.

They are ready to begin construction.

How much lithium is in the world and can elon musk have enough?

They estimate they could use 17% of all of the lithium in the world.

We are seeing supply fairly not match up to demand.

Demand will be 480,000 tons.

Supply will be 300,000 tons.

How do you make it?

There are several other sites he is looking at, right?

California, arizona, and a couple of other states.

Texas, that's right.

They are also doing

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change