Tesla sold 32,968 China-made vehicles in July, local sales plunged month over month

Business

CNBC 10 August, 2021 - 06:11am 31 views

U.S. electric vehicle maker Tesla Inc sold 32,968 China-made vehicles in July, including 24,347 for export, the China Passenger Car Association (CPCA) said on Tuesday.

Local sales of China-made vehicles plunged 69% to 8,621 cars from 28,138 in June. Tesla's sales in the first month of each quarter are usually lower than the following two months.

The company, which makes Model 3 sedans and Model Y sport-utility vehicles in Shanghai, sold 33,155 China-made vehicles in June.

Last month, Tesla introduced a cheaper version of the Model Y in China, where it faces increased scrutiny from both regulators and the public and growing competition from local rivals. It also lowered the starting price for Model 3 sedans.

China's BYD sold 50,387 electric vehicles last month, while General Motors Co's China joint venture with SAIC Motor delivered 27,347 units.

CPCA also said China sold 1.52 million passenger cars in July, down 6.4% from a year earlier.

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Tesla sales cratered in China, but investors don't seem to mind

CNN 10 August, 2021 - 11:50am

Updated 12:19 PM ET, Tue August 10, 2021

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Elon Musk Talks About Tesla's Most Difficult Challenge

InsideEVs 10 August, 2021 - 08:29am

Posted on EVANNEX August 09, 2021 by Matt Pressman

Now that the dust has settled, Tesla's stock has surged since the company's second-quarter numbers were released. It appears the market is embracing a bright future for Tesla and its forward-thinking battery strategy. That said, Elon Musk wasn't all rainbows and unicorns on the company's earnings conference call. 

Carmine Gallo at Forbes writes, "Business leaders who run complex organizations or divisions should take a page from the Musk playbook and explain their businesses before someone else with less expertise does it for them." Indeed. Musk's frank and candid communication style was, once again, on full display.

Manufacturing electric vehicles is “insanely difficult,” Musk said. “Those who have not actually been involved in manufacturing just have no idea how painful and difficult it is. It’s like you've got to eat a lot of glass.” Ouch. And that's not all. Musk acknowledged that ongoing chip shortages are “quite serious” this year. 

“There are 10,000 unique parts and processes that have to work,” Musk explained. He went on to say that even if they have 9,999 of those parts, just one missing part means the car can’t ship. And chip shortages weren't the only supply chain roadblock for auto manufacturers.

“For example, a big struggle this quarter was the module that controls the airbags and the seat belts. And obviously, you cannot ship a car without those. That limited our production severely worldwide in Shanghai and in Fremont,” explained Musk.

Production is hard. Prototypes are easy. The real challenge, according to Musk, is manufacturing at volume. In retrospect, this might've been a not-so-subtle reminder regarding those start-ups out there receiving endless hype for their EV prototypes. After all, during the week of Tesla's quarterly earnings call, the start-up electric automaker Lucid Motors went public and raised $4.5 Billion.

According to Musk, manufacturing at volume is where the rubber meets the road. He explains, "The really remarkable thing that Tesla has done is not to make an electric car, or to be a car start-up, because there have been hundreds of car start-ups in the United States and outside United States. The thing that’s remarkable is that Tesla didn’t go bankrupt in reaching volume production."

Outside observers (and investors) often think, according to Musk, "the prototype or the idea was the hard part, and it is not. It is trivial by comparison with actual production. So it's always worth noting that of all the American car companies, there are only two that have not gone bankrupt... Ford and Tesla."

Even though Tesla's second-quarter results were well-received, Musk's not about to relax and let his guard down. He issued a stern reminder to investors, staff, and perhaps even himself when he said, "the seeds of defeat are [often] sown on the day of victory, and we must be careful that we do not do that."

Read More About Tesla And Manufacturing:

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Elon Musk Talks About Tesla's Most Difficult Challenge

Seeking Alpha 10 August, 2021 - 08:29am

Posted on EVANNEX August 09, 2021 by Matt Pressman

Now that the dust has settled, Tesla's stock has surged since the company's second-quarter numbers were released. It appears the market is embracing a bright future for Tesla and its forward-thinking battery strategy. That said, Elon Musk wasn't all rainbows and unicorns on the company's earnings conference call. 

Carmine Gallo at Forbes writes, "Business leaders who run complex organizations or divisions should take a page from the Musk playbook and explain their businesses before someone else with less expertise does it for them." Indeed. Musk's frank and candid communication style was, once again, on full display.

Manufacturing electric vehicles is “insanely difficult,” Musk said. “Those who have not actually been involved in manufacturing just have no idea how painful and difficult it is. It’s like you've got to eat a lot of glass.” Ouch. And that's not all. Musk acknowledged that ongoing chip shortages are “quite serious” this year. 

“There are 10,000 unique parts and processes that have to work,” Musk explained. He went on to say that even if they have 9,999 of those parts, just one missing part means the car can’t ship. And chip shortages weren't the only supply chain roadblock for auto manufacturers.

“For example, a big struggle this quarter was the module that controls the airbags and the seat belts. And obviously, you cannot ship a car without those. That limited our production severely worldwide in Shanghai and in Fremont,” explained Musk.

Production is hard. Prototypes are easy. The real challenge, according to Musk, is manufacturing at volume. In retrospect, this might've been a not-so-subtle reminder regarding those start-ups out there receiving endless hype for their EV prototypes. After all, during the week of Tesla's quarterly earnings call, the start-up electric automaker Lucid Motors went public and raised $4.5 Billion.

According to Musk, manufacturing at volume is where the rubber meets the road. He explains, "The really remarkable thing that Tesla has done is not to make an electric car, or to be a car start-up, because there have been hundreds of car start-ups in the United States and outside United States. The thing that’s remarkable is that Tesla didn’t go bankrupt in reaching volume production."

Outside observers (and investors) often think, according to Musk, "the prototype or the idea was the hard part, and it is not. It is trivial by comparison with actual production. So it's always worth noting that of all the American car companies, there are only two that have not gone bankrupt... Ford and Tesla."

Even though Tesla's second-quarter results were well-received, Musk's not about to relax and let his guard down. He issued a stern reminder to investors, staff, and perhaps even himself when he said, "the seeds of defeat are [often] sown on the day of victory, and we must be careful that we do not do that."

Read More About Tesla And Manufacturing:

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Tesla's China Deliveries Come Up Short. That's Not a Problem.

Barron's 10 August, 2021 - 07:00am

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Tesla’s delivered just 8,600 cars in China last month, the latest Chinese delivery data show, a big drop from the previous month. Tesla stock is barely budging—and you don’t have to be a bull or bear to understand why.

The Chinese Passenger Car Association released Tesla (ticker: TSLA) shipments Tuesday. Tesla delivered about 33,000 vehicles from its Shanghai plant this past month. About 8,600 were delivered in China and about 24,300 were exported. Tesla delivered more EVs in the month than the joint venture between SAIC and General Motors (GM), which came in at number two with about 27,000 shipments, according to a translated version of the website.

The local delivery figure—at less than 9,000—might surprise, but the data is a repeat of April, the first month of the second quarter. Back then, Tesla shipped about 26,000 vehicles in total with 12,000 for local Chinese markets and 14,000 for export. By June, at the end of the second quarter, Tesla shipped about 33,000 vehicles with roughly 5,000 exported and 28,000 for the domestic Chinese market.

Tesla appears to export more cars early in the quarter and shift to local deliveries later in the quarter. Tesla wasn’t immediately available to comment on the deliveries or the delivery patterns.

The 33,000 total vehicles produced in July are roughly flat with June shipments and show Tesla producing at a rate of about 400,000 vehicles annually from its Shanghai facility. Tesla would like to produce close to 500,000 vehicles from a single plant, but the global automotive chip shortage continues to constrain auto production for many auto makers.

Tesla shares were flat in premarket trading. Now shares are down about 0.8% in early Tuesday trading. The S&P 500 and Dow Jones Industrial Average are both up about 0.1%. All Tesla data points are closely scrutinized by the market. Some move the stock a lot. Others, like July deliveries, just keep the stock in its recent trading range.

The stock is giving back some of Monday’s 2.1% rise which came after Jefferies analyst Philippe Houchois upgraded his rating on the stock to Buy from Hold and increased his price target to $850 a share from $700.

Monday’s gain pushed Tesla stock into the green for the year. Coming into Tuesday trading, shares are up about 1.1% so far in 2021. Tesla stock has paused for a while, but shares are up 152% over the past 12 months. That’s better than the comparable 35% gain of the Nasdaq Composite over the same span.

Write to allen.root@dowjones.com

Tesla’s delivered just 8,600 cars in China last month, the latest Chinese delivery data show, a big drop from the previous month.

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'Difficult' Tesla Cybertruck postponed to 2022

Fox News 09 August, 2021 - 07:38am

This material may not be published, broadcast, rewritten, or redistributed. ©2021 FOX News Network, LLC. All rights reserved. Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. Legal Statement. Mutual Fund and ETF data provided by Refinitiv Lipper.

With a bulletproof body and 500-mile battery-powered range, Tesla's electric pickup isn't like every other truck.

"Prototypes are easy, production is hard."

Tesla CEO Elon Musk has made that point time and again and the proof is in the latest delay for the Cybertruck.

The automaker's website has apparently confirmed that the first deliveries of its stainless steel pickup have been delayed to 2022.

"You will be able to complete your configuration as production nears in 2022," a message says on the reservation site for all three versions of Cybertruck. Previously, the Dual Motor AWD and Tri Motor AWD configurations were listed with a 2021 target date.

"I think Cybertruck ramp will be difficult because it's such new architecture. I mean it's going to be a great product. It might, I think be our best product ever. But there's a lot of fundamentally new design ideas in the Cybertruck," Musk said during Tesla's second-quarter earnings call in July.

The Cybertruck will be built at Tesla's under construction factory in Austin, Tex., alongside the Model Y and will use radically new production methods that replace dozens of parts with large single-piece castings and be powered by a next-generation battery technology that is still in development. The Tesla Semi has also been pushed to 2022 until there is a large enough supply of the new battery packs to build the two vehicles at an economically viable scale.

"Nobody's ever really made a car like this before, a vehicle like this before. So there will probably be challenges because there's so much unexplored territory," Musk said.

This material may not be published, broadcast, rewritten, or redistributed. ©2021 FOX News Network, LLC. All rights reserved. Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. Legal Statement. Mutual Fund and ETF data provided by Refinitiv Lipper.

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