firsttruck
Well-known member
- Thread starter
- #1
Or was Tesla lying in reports to shareholders & government.
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Tesla Service Was Not Supposed To Be A Profit Center … But It Is Now
2024 Jan
Zachary Shahan
https://cleantechnica.com/2024/01/2...ot-going-to-be-a-profit-center-but-is-it-now/
So, I found it interesting when reading Tesla’s Q4 and 2023 shareholder letter
.....
Going deeper into the report, I then found a better explanation of what “services and other” is capturing. “The Services and Other business continued to grow alongside our fleet in 2023, achieving record revenue and gross profit generation. The biggest drivers of profit generation in 2023 were part sales, used vehicle sales, merchandise sales and pay-per-use supercharging. As our fleet continues to expand in the coming years, there is an opportunity for fleet-related services to become a more meaningful driver of profit generation
.....
Pay-per-use supercharging is an intriguing one. So far, Tesla is basically just making money on this from its growing owner fleet and the growing number of Superchargers out there. However, in the coming years, as more electric vehicles can use Tesla’s Superchargers — via adapters and then via their built-in charging equipment — you could see this really booming. In fact, while Tesla’s vehicles have had other advantages over the years, access to the Supercharger network has been the biggest advantage for many buyers. I think Tesla risks losing auto sales by opening up the network to other EVs, but at the same time, it could lock down a semi-monopoly on fast charging in North America, could indeed help EV adoption to grow much faster, and could end up making a great deal more revenue and profits from charging services. Actually, I’ve also argued for years that Tesla should build better facilities and services around these Superchargers, to make them nicer for travelers, and also to make a great deal more revenue. Many drivers would spend more money on snacks, coffee, or other goodies from a Tesla store at a Supercharger station than they would on the charging. And bonus: I don’t think Elon ever said that Tesla would never make a profit on its charging services.
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Stanford Energy Solutions Week 2022 | Fireside Chat with Drew Baglino
Tuesday May 3, 2022. Drew Baglino, Senior Vice President of Powertrain and Energy Engineering for Tesla, sits down for a conversation with Yi Cui, Professor of Materials Science and Engineering and Director of the Stanford Precourt Institute for Energy and Will Chueh, Associate Professor of Materials Science and Engineering and Senior Fellow at the Stanford Precourt Institute for Energy, to share his experiences and what excites him in the energy storage space.
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Transcript
Drew Baglino:
41:27 supercharging actually and we run it like a business and we it has its own p l and it needs to be profitable in its
41:34 own right and we look at all the costs and we want you want to do the absolute bare
41:40 minimum at the site to make the charging possible and swapping is not the absolute bare
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
FORM 8K for Tesla, Inc.
Date: October 18, 2023
https://ir.tesla.com/_flysystem/s3/sec/000162828023034588/tsla-20231018-gen.pdf
.....
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
FORM 10-K for Tesla, Inc.
Date: December 31, 2023
https://www.sec.gov/Archives/edgar/data/1318605/000162828024002390/tsla-20231231.htm
ITEM 1. BUSINESS
Overview
We design, develop, manufacture, sell and lease high-performance fully electric vehicles and energy generation and storage systems, and offer services related to our products. We generally sell our products directly to customers, and continue to grow our customer-facing infrastructure through a global network of vehicle showrooms and service centers, Mobile Service, body shops, Supercharger stations and Destination Chargers to accelerate the widespread adoption of our products.
.....
Public Charging
We have a growing global network of Tesla Superchargers, which are our industrial-grade, high-speed vehicle chargers. Where possible, we co-locate Superchargers with our solar and energy storage systems to reduce costs and promote renewable power. Supercharger stations are typically placed along well-traveled routes and in and around dense city centers to allow vehicle owners the ability to enjoy quick, reliable charging along an extensive network with convenient stops. Use of the Supercharger network either requires payment of a fee or is free under certain sales programs. In November 2021, we began to offer Supercharger access to non-Tesla vehicles in certain locations in support of our mission to accelerate the world’s transition to sustainable energy, and in November 2022, we opened up our previously proprietary charging connector as the North American Charging Standard (NACS). This enables all electric vehicles and charging stations to interoperate — which makes charging easier and more efficient for everyone and advances our mission to accelerate the world’s transition to sustainable energy. Following this, a number of major automotive companies announced their adoption of NACS, with their access to the Supercharger network beginning in phases in 2024 and their production of NACS vehicles beginning no later than 2025. We also engaged SAE International to govern NACS as an industry standard, now named J3400. We continue to monitor and increase our network of Tesla Superchargers in anticipation of future demand.
We also work with a wide variety of hospitality, retail and public destinations, as well as businesses with commuting employees, to offer additional charging options for our customers, as well as single-family homeowners and multi-family residential entities, to deploy home charging solutions.
.....
We believe that there is also increasing competition for our vehicle offerings as a platform for delivering self-driving technologies, charging solutions and other features and services, and we expect to compete in this developing market through continued progress on our Autopilot, FSD and neural network capabilities, Supercharger network and our infotainment offerings.
.....
the increasing number of Tesla vehicles also requires us to continue to rapidly increase the number of our Supercharger stations and connectors throughout the world.
.....
As our production increases, we must work constantly to similarly increase vehicle delivery capability so that it does not become a bottleneck on our total deliveries. We are also committed to reducing the percentage of vehicles delivered in the third month of each quarter, which will help to reduce the cost per vehicle. As we expand our manufacturing operations globally, we will also have to continue to increase and staff our delivery, servicing and charging infrastructure accordingly, maintain our vehicle reliability and optimize our Supercharger locations to ensure cost effectiveness and customer satisfaction. In particular, as other automotive manufacturers have announced their adoption of the North American Charging Standard (“NACS”) and agreements with us to utilize our Superchargers, we must correspondingly expand our network in order to ensure adequate availability to meet customer demands. We also remain focused on continued enhancements of the capability and efficiency of our servicing operations.
.....
Cash Flow and Capital Expenditure Trends
Our capital expenditures are typically difficult to project beyond the short-term given the number and breadth of our core projects at any given time, and may further be impacted by uncertainties in future global market conditions. We are simultaneously ramping new products, building or ramping manufacturing facilities on three continents, piloting the development and manufacture of new battery cell technologies, expanding our Supercharger network and investing in autonomy and other artificial intelligence enabled training and products, and the pace of our capital spend may vary depending on overall priority among projects, the pace at which we meet milestones, production adjustments to and among our various products, increased capital efficiencies and the addition of new projects. Owing and subject to the foregoing as well as the pipeline of announced projects under development, all other continuing infrastructure growth and varying levels of inflation, we currently expect our capital expenditures to exceed $10.00 billion in 2024 and be between $8.00 to $10.00 billion in each of the following two fiscal years.
.....
Services and other revenue increased $2.23 billion, or 37%, in the year ended December 31, 2023 as compared to the year ended December 31, 2022. The increase was primarily due to higher used vehicle revenue driven by increases in volume, body shop and part sales revenue, non-warranty maintenance services revenue, paid Supercharging revenue and insurance services revenue, all of which are primarily attributable to our growing fleet. The increases were partially offset by a decrease in the average selling price of used vehicles.
.....
Liquidity and Capital Resources
We expect to continue to generate net positive operating cash flow as we have done in the last five fiscal years. The cash we generate from our core operations enables us to fund ongoing operations and production, our research and development projects for new products and technologies including our proprietary battery cells, additional manufacturing ramps at existing manufacturing facilities, the construction of future factories, and the continued expansion of our retail and service locations, body shops, Mobile Service fleet, Supercharger, including to support NACS, energy product installation capabilities and autonomy and other artificial intelligence enabled products.
--------------------------------------
Tesla Q4 & FY2023 Update
https://www.sec.gov/Archives/edgar/data/1318605/000095017024007073/tsla-ex99_1.htm
.....
--------------------------------------
Tesla, Inc. First Quarter 2024 Update, dated April 23, 2024.
https://www.sec.gov/Archives/edgar/data/1318605/000095017024046895/tsla-ex99_1.htm
.....
--------------------------------------
--------------------------------------
Tesla Service Was Not Supposed To Be A Profit Center … But It Is Now
2024 Jan
Zachary Shahan
https://cleantechnica.com/2024/01/2...ot-going-to-be-a-profit-center-but-is-it-now/
So, I found it interesting when reading Tesla’s Q4 and 2023 shareholder letter
.....
Going deeper into the report, I then found a better explanation of what “services and other” is capturing. “The Services and Other business continued to grow alongside our fleet in 2023, achieving record revenue and gross profit generation. The biggest drivers of profit generation in 2023 were part sales, used vehicle sales, merchandise sales and pay-per-use supercharging. As our fleet continues to expand in the coming years, there is an opportunity for fleet-related services to become a more meaningful driver of profit generation
.....
Pay-per-use supercharging is an intriguing one. So far, Tesla is basically just making money on this from its growing owner fleet and the growing number of Superchargers out there. However, in the coming years, as more electric vehicles can use Tesla’s Superchargers — via adapters and then via their built-in charging equipment — you could see this really booming. In fact, while Tesla’s vehicles have had other advantages over the years, access to the Supercharger network has been the biggest advantage for many buyers. I think Tesla risks losing auto sales by opening up the network to other EVs, but at the same time, it could lock down a semi-monopoly on fast charging in North America, could indeed help EV adoption to grow much faster, and could end up making a great deal more revenue and profits from charging services. Actually, I’ve also argued for years that Tesla should build better facilities and services around these Superchargers, to make them nicer for travelers, and also to make a great deal more revenue. Many drivers would spend more money on snacks, coffee, or other goodies from a Tesla store at a Supercharger station than they would on the charging. And bonus: I don’t think Elon ever said that Tesla would never make a profit on its charging services.
--------------------------------------
Stanford Energy Solutions Week 2022 | Fireside Chat with Drew Baglino
Tuesday May 3, 2022. Drew Baglino, Senior Vice President of Powertrain and Energy Engineering for Tesla, sits down for a conversation with Yi Cui, Professor of Materials Science and Engineering and Director of the Stanford Precourt Institute for Energy and Will Chueh, Associate Professor of Materials Science and Engineering and Senior Fellow at the Stanford Precourt Institute for Energy, to share his experiences and what excites him in the energy storage space.
-----
Transcript
Drew Baglino:
41:27 supercharging actually and we run it like a business and we it has its own p l and it needs to be profitable in its
41:34 own right and we look at all the costs and we want you want to do the absolute bare
41:40 minimum at the site to make the charging possible and swapping is not the absolute bare
--------------------------------------
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
FORM 8K for Tesla, Inc.
Date: October 18, 2023
https://ir.tesla.com/_flysystem/s3/sec/000162828023034588/tsla-20231018-gen.pdf
.....
--------------------------------------
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
FORM 10-K for Tesla, Inc.
Date: December 31, 2023
https://www.sec.gov/Archives/edgar/data/1318605/000162828024002390/tsla-20231231.htm
ITEM 1. BUSINESS
Overview
We design, develop, manufacture, sell and lease high-performance fully electric vehicles and energy generation and storage systems, and offer services related to our products. We generally sell our products directly to customers, and continue to grow our customer-facing infrastructure through a global network of vehicle showrooms and service centers, Mobile Service, body shops, Supercharger stations and Destination Chargers to accelerate the widespread adoption of our products.
.....
Public Charging
We have a growing global network of Tesla Superchargers, which are our industrial-grade, high-speed vehicle chargers. Where possible, we co-locate Superchargers with our solar and energy storage systems to reduce costs and promote renewable power. Supercharger stations are typically placed along well-traveled routes and in and around dense city centers to allow vehicle owners the ability to enjoy quick, reliable charging along an extensive network with convenient stops. Use of the Supercharger network either requires payment of a fee or is free under certain sales programs. In November 2021, we began to offer Supercharger access to non-Tesla vehicles in certain locations in support of our mission to accelerate the world’s transition to sustainable energy, and in November 2022, we opened up our previously proprietary charging connector as the North American Charging Standard (NACS). This enables all electric vehicles and charging stations to interoperate — which makes charging easier and more efficient for everyone and advances our mission to accelerate the world’s transition to sustainable energy. Following this, a number of major automotive companies announced their adoption of NACS, with their access to the Supercharger network beginning in phases in 2024 and their production of NACS vehicles beginning no later than 2025. We also engaged SAE International to govern NACS as an industry standard, now named J3400. We continue to monitor and increase our network of Tesla Superchargers in anticipation of future demand.
We also work with a wide variety of hospitality, retail and public destinations, as well as businesses with commuting employees, to offer additional charging options for our customers, as well as single-family homeowners and multi-family residential entities, to deploy home charging solutions.
.....
We believe that there is also increasing competition for our vehicle offerings as a platform for delivering self-driving technologies, charging solutions and other features and services, and we expect to compete in this developing market through continued progress on our Autopilot, FSD and neural network capabilities, Supercharger network and our infotainment offerings.
.....
the increasing number of Tesla vehicles also requires us to continue to rapidly increase the number of our Supercharger stations and connectors throughout the world.
.....
As our production increases, we must work constantly to similarly increase vehicle delivery capability so that it does not become a bottleneck on our total deliveries. We are also committed to reducing the percentage of vehicles delivered in the third month of each quarter, which will help to reduce the cost per vehicle. As we expand our manufacturing operations globally, we will also have to continue to increase and staff our delivery, servicing and charging infrastructure accordingly, maintain our vehicle reliability and optimize our Supercharger locations to ensure cost effectiveness and customer satisfaction. In particular, as other automotive manufacturers have announced their adoption of the North American Charging Standard (“NACS”) and agreements with us to utilize our Superchargers, we must correspondingly expand our network in order to ensure adequate availability to meet customer demands. We also remain focused on continued enhancements of the capability and efficiency of our servicing operations.
.....
Cash Flow and Capital Expenditure Trends
Our capital expenditures are typically difficult to project beyond the short-term given the number and breadth of our core projects at any given time, and may further be impacted by uncertainties in future global market conditions. We are simultaneously ramping new products, building or ramping manufacturing facilities on three continents, piloting the development and manufacture of new battery cell technologies, expanding our Supercharger network and investing in autonomy and other artificial intelligence enabled training and products, and the pace of our capital spend may vary depending on overall priority among projects, the pace at which we meet milestones, production adjustments to and among our various products, increased capital efficiencies and the addition of new projects. Owing and subject to the foregoing as well as the pipeline of announced projects under development, all other continuing infrastructure growth and varying levels of inflation, we currently expect our capital expenditures to exceed $10.00 billion in 2024 and be between $8.00 to $10.00 billion in each of the following two fiscal years.
.....
Services and other revenue increased $2.23 billion, or 37%, in the year ended December 31, 2023 as compared to the year ended December 31, 2022. The increase was primarily due to higher used vehicle revenue driven by increases in volume, body shop and part sales revenue, non-warranty maintenance services revenue, paid Supercharging revenue and insurance services revenue, all of which are primarily attributable to our growing fleet. The increases were partially offset by a decrease in the average selling price of used vehicles.
.....
Liquidity and Capital Resources
We expect to continue to generate net positive operating cash flow as we have done in the last five fiscal years. The cash we generate from our core operations enables us to fund ongoing operations and production, our research and development projects for new products and technologies including our proprietary battery cells, additional manufacturing ramps at existing manufacturing facilities, the construction of future factories, and the continued expansion of our retail and service locations, body shops, Mobile Service fleet, Supercharger, including to support NACS, energy product installation capabilities and autonomy and other artificial intelligence enabled products.
--------------------------------------
Tesla Q4 & FY2023 Update
https://www.sec.gov/Archives/edgar/data/1318605/000095017024007073/tsla-ex99_1.htm
.....
--------------------------------------
Tesla, Inc. First Quarter 2024 Update, dated April 23, 2024.
https://www.sec.gov/Archives/edgar/data/1318605/000095017024046895/tsla-ex99_1.htm
.....
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