Elon Musk Hosted a Tesla ‘All Hands’ Meeting. Here’s What Happened.

  • Order Reprints
  • Print Article

Text size

im 395756?width=639&height=426

Tesla CEO Elon Musk.

Scott Olson/Getty Images

Things are getting more complicated for electric vehicle leader Tesla.

The company is balancing the addition of new models, new capacity, and new employees—all during a pandemic and semiconductor shortage that is constraining global auto production. The rising complexity might be why CEO Elon Musk wanted to chat with employees.

Musk held an all-hands meeting that all Tesla (ticker: TSLA) employees could dial into, according to reports. Tesla didn’t respond to a request for comment.

There was good news and bad news for investors.

The bad news is that the Cybertruck is facing delays. Investors already knew delivery of Tesla’s light-duty pickup had slipped from 2021 into 2022. Now it looks as if production in volume won’t come before 2023.

That puts Tesla behind Ford Motor (F), Rivian, and potentially General Motors (GM) in the race to launch an all-electric truck at a scale of tens of thousands of units a year.

On the positive side, 2023 also appears to be the year Tesla plans to launch a smaller model costing about $25,000. Musk and Tesla management have talked about a lower-cost model for months. That is good for the company because it will dramatically expand the market Tesla can address.

A Tesla Model 3 Sedan starts at about $40,000 in the U.S. today. It’s still a higher-end sedan, costing about $60,000 in certain configurations.

To date, few details have emerged about the small model. Now analysts and investors will start to put 2023 into their financial models.

The key to selling a low-cost EV, of course, is getting battery costs down. Tesla has managed to raise its gross profit per car sold from about $11,000 to almost $15,000 over the past two years. That happened while average selling prices dropped from about $56,000 to $51,000 per car.

There was talk of a robo-van, too, but details were thin. That might be a self- driving vehicle far in the future, but Tesla also could have designs on the commercial vehicle market down the road. Ford Motor (F) plans to offer an electric version of its Transit van. EV trucking start-up Rivian also has a commercial vehicle planned. EVs make a lot of sense for fleets. They can be charged centrally at night, a daily route rarely exceeds one battery charge, and EVs are cheaper to maintain that traditional vehicles.

Musk also told employees that September would be a busy month for deliveries, Tesla typically delivers most of its cars in the final month of a quarter.

Tesla delivered more than 200,000 vehicles in the second quarter. Analysts are projecting about 224,000 vehicles to be delivered in the third quarter. The global chip shortage, however, will make quarterly production and deliveries a little more exciting than usual.

Tesla stock isn’t doing much in response to the mix of news. Shares closed up about 0.2% Friday. The S&P 500 closed just down and the Dow Jones Industrial Average fell about 0.2%. The Nasdaq Composite —home to many richly valued tech stocks like Tesla—rose 0.2%, like Tesla stock.

So far in 2021, Tesla shares are up about 4% year to date, trailing behind the 21% comparable gain of the S&P 500. Still, Tesla stock is up about 80% over the past 12 months and rose 743% in 2020.

Write to Al Root at [email protected]

Source: Elon Musk Hosted a Tesla ‘All Hands’ Meeting. Here’s What Happened.

*This is a free press release. Upgraded press releases are ad-free!

Megger and IPS Group announce strategic partnership

Megger Group and IPS Group have announced that they have reached a definitive agreement to work together as strategic partners, combining both their experience and product lines to create new value for the electrical supply industry. The agreement includes Megger taking an equity stake in IPS.IPS is one of the leading providers of Enterprise Asset…

Read Press Release

GAMEE plans to use Polygon’s scaling solution for Arc8

Polygon has partnered with GAMEE solidifying its strength in the gaming sectorGAMEE will use the Ethereum scaling solution for its Arc8Being a leading solution for ETH scaling and infrastructure development, the network will allow GAMEE to offer a faster and cheaper way for players to buy tokens and withdraw rewardsPolygon formerly known as the Matic…

Read Press Release

Blubrry Added Podcast Hosting Plans

Blubrry announced that they are once again bringing value to podcast hosting customers with their Advanced Plan. Advanced Statistics and Domain Mapping (for those using our free WordPress websites) are now included in Blubrry’s $20+ hosting plans. Growing a podcast audience is exciting, and Blubrry is offering one of the best ways to keep track…

Read Press Release

Elon Musk Hosted a Tesla ‘All Hands’ Meeting. Here’s What Happened. - Click To Share

Share on facebook
Share on twitter
Share on reddit
Share on linkedin
Share on email
Share on whatsapp