9 ms·

Tesla second-quarter profits top $1B even as it struggles to handle demand

90 points by evo_9 5y ago

phnofive 5y ago
See: https://news.ycombinator.com/item?id=27964677 https://news.ycombinator.com/item?id=27964677
api 5y ago
Struggles to handle demand. That's a good problem to have.
- nacs 5y ago
  Usually yes but their inability to meet demand with long wait times is turning people away and continues to do so. I’ve been wanting to buy a base model but the wait time on it is 2 months. That means I have to order, make a down payment and everything and continue to keep my old car for 2 months while I wait to actually get the Tesla. For other car brands I can just goto the dealer and get it the same day. Edit: Correction - I thought the finance/down-payment and stuff had to start after the order process - didn’t realize it was due after delivery.
  - cjbprime 5y ago
    Which down payment are you talking about? I thought there was a $100 reservation fee. Is that what you mean?
    - elif 5y ago
      Correct I paid only $100.00 before I was sitting in my car 25 days after ordering in June. They did not check my finances or anything.
- imtringued 5y ago
  Only if you don't have competitors and customers are willing to wait.
elif 5y ago
The most remarkable aspect is that this profit is in the context of traditional manufacturers who are selling their EVs at a loss.
- Robotbeat 5y ago
  And traditional carmakers are also (except for GM) still getting the advantage of federal EV credits, unlike Tesla.
- klaff 5y ago
  https://electrek.co/2019/11/19/ford-mustang-mach-e-immediately-profitable-says-ford-ceo/ https://electrek.co/2019/11/19/ford-mustang-mach-e-immediate...
mbar84 5y ago
Why is "even" in the title? People can't give them money fast enough and it is somehow mysterious that they're earning a profit?
- rrrrrrrrrrrryan 5y ago
  Subtitle: "A global shortfall of semiconductors has affected the Tesla supply chain as well as car manufacturers across the world" Tesla has a ton of fixed costs, and they have to actually ship cars in order to collect revenue.
hellbannedguy 5y ago
Tesla has some big competition coming up from Ford, Audi, and the rest. The next race will be for a reasonably priced electric vechicle the middle class can buy. Preferably from a company that will around for the next decade. There's a bunch of startups that are catering to the over $70,000 wealthy crowd, but I'm not seeing low priced vechicle from companies that have longevity. I really got to hand it to Elon. I don't think we would be here without him. I am so close to retrofitting, or buying a salvage title Tesla. (When buying a salvaged Tesla, you don't have access to firmware updates, parts, etc., but I would love one, even if I didn't have access to all the bells, and whisltles.)
- foobarian 5y ago
  We've been hearing these stories about how $large_car_maker is making an electric car but so far I've only seen renders and wishful thinking. Not to mention lack of charging infrastructure plans to rival Tesla's. Maybe around 2030 time frame but before that I'm skeptical.
  - tw04 5y ago
    Chevy already sells the bolt. Ford sells the Mach-e with the f150 not far behind. Vw and Volvo have several cars already available. If you’ve “only seen renders” you haven’t been looking very hard.
    - qdog 5y ago
      News articles have been puplished for the last decade or so about how Tesla was going to die to these larger car companies when the larger car companies really start making electric cars. Which could be true, but so far, not so much. The Bolt is electric, but not a very good comparison to Tesla. The offerings from the other car companies do not currently surpass Tesla in any meaningful way I can see, and the assumption that the other car companie can "will into being" a technical marvel better than Tesla, seems to continue to be only an assumption. I do not like Tesla or Musk very much, and would love for my next pickup to me an electrified F150, but none of the current electric offerings seem all that appealing if you aren't looking for a Tesla or can't reasonably commute in a Leaf. I am still skeptical I will be able to buy an F150 electric within the next 2 or 3 years, and would not be surprised to have to wait 3-5 years as they work out the kinks. I am not looking to plunk down 100k+ on GM's Hummer, either. Dislike for Musk aside, I have to acknowledge Tesla is delivering a reasonable vehicle (discounting the stupid auto -pilot that isn't auto-pilot), whereas most other companies are still delivering small numbers of electric vehicles, but large marketing campaigns, which seem aimed at getting people to continue to wait on buying an electric car, because the next best version is always just around the corner.
andrewmcwatters 5y ago
What the hell is so hard with taking stamped metal, making something look better than the cookie cutter crap we have today, sticking a giant Eneloop on it, and tossing in a 23-inch non-automotive grade touchscreen monitor powered by some AMD game console grade x64 processor on Ubuntu? That's a step away from what Tesla is doing today, and I'd rather buy that than any of the trash BMW, Daimler, or Volkswagen are selling today. These manufacturers are sitting on their hands. And it's not just the tech. It's everything. My Audi A4 has virtually the same moonroof on it from 2007 that is being sold on the highest end trim A4s today. It's stamped metal. Make it look hot already, and not like some car version of a short bus. Tesla struggles with demand because everyone already knows what they want and zero manufacturers want to sell it.
- TMWNN 5y ago
  >What the hell is so hard with taking stamped metal, making something look better than the cookie cutter crap we have today, sticking a giant Eneloop on it, and tossing in a 23-inch non-automotive grade touchscreen monitor powered by some AMD game console grade x64 processor on Ubuntu? Right. What I don't understand is why automakers don't release the same vehicle with the drivetrain type as an option. Big two-page spread ad in magazines that show what looks like two identical units of the same car with the headline "Can you tell the difference?", with the text below the cars describing how you can get the model you want regardless of whether you prefer gas or electric. When Apple transitioned from PowerPC to Intel in 2006 it did not redesign the MacBook Pro; it just stuck an Intel CPU inside. Same with the Power Macintosh, Mac Mini, and iMac; only the lowest-end iBook became a MacBook The M1 MacBooks' exteriors are identical to the Intel models they replaced. Why can't automakers do this?
  - fomine3 5y ago
    > What I don't understand is why automakers don't release the same vehicle with the drivetrain type as an option. Because it's core component that takes much space. Powertrain decides overall car layout/design. Having that said, there are some cars supports multiple configuration like PHEV/EV vs pure ICE, but I believe most of them are SUV style because there are many spaces to put powertrain.

90 points by evo_9 5y ago

phnofive 5y ago

See: https://news.ycombinator.com/item?id=27964677 https://news.ycombinator.com/item?id=27964677

api 5y ago

Struggles to handle demand. That's a good problem to have.

nacs 5y ago
Usually yes but their inability to meet demand with long wait times is turning people away and continues to do so. I’ve been wanting to buy a base model but the wait time on it is 2 months. That means I have to order, make a down payment and everything and continue to keep my old car for 2 months while I wait to actually get the Tesla. For other car brands I can just goto the dealer and get it the same day. Edit: Correction - I thought the finance/down-payment and stuff had to start after the order process - didn’t realize it was due after delivery.
- cjbprime 5y ago
  Which down payment are you talking about? I thought there was a $100 reservation fee. Is that what you mean?
  - elif 5y ago
    Correct I paid only $100.00 before I was sitting in my car 25 days after ordering in June. They did not check my finances or anything.
imtringued 5y ago
Only if you don't have competitors and customers are willing to wait.

elif 5y ago

The most remarkable aspect is that this profit is in the context of traditional manufacturers who are selling their EVs at a loss.

Robotbeat 5y ago
And traditional carmakers are also (except for GM) still getting the advantage of federal EV credits, unlike Tesla.
klaff 5y ago
https://electrek.co/2019/11/19/ford-mustang-mach-e-immediately-profitable-says-ford-ceo/ https://electrek.co/2019/11/19/ford-mustang-mach-e-immediate...

mbar84 5y ago

Why is "even" in the title? People can't give them money fast enough and it is somehow mysterious that they're earning a profit?

rrrrrrrrrrrryan 5y ago
Subtitle: "A global shortfall of semiconductors has affected the Tesla supply chain as well as car manufacturers across the world" Tesla has a ton of fixed costs, and they have to actually ship cars in order to collect revenue.

hellbannedguy 5y ago

Tesla has some big competition coming up from Ford, Audi, and the rest. The next race will be for a reasonably priced electric vechicle the middle class can buy. Preferably from a company that will around for the next decade. There's a bunch of startups that are catering to the over $70,000 wealthy crowd, but I'm not seeing low priced vechicle from companies that have longevity. I really got to hand it to Elon. I don't think we would be here without him. I am so close to retrofitting, or buying a salvage title Tesla. (When buying a salvaged Tesla, you don't have access to firmware updates, parts, etc., but I would love one, even if I didn't have access to all the bells, and whisltles.)

foobarian 5y ago
We've been hearing these stories about how $large_car_maker is making an electric car but so far I've only seen renders and wishful thinking. Not to mention lack of charging infrastructure plans to rival Tesla's. Maybe around 2030 time frame but before that I'm skeptical.
- tw04 5y ago
  Chevy already sells the bolt. Ford sells the Mach-e with the f150 not far behind. Vw and Volvo have several cars already available. If you’ve “only seen renders” you haven’t been looking very hard.
  - qdog 5y ago
    News articles have been puplished for the last decade or so about how Tesla was going to die to these larger car companies when the larger car companies really start making electric cars. Which could be true, but so far, not so much. The Bolt is electric, but not a very good comparison to Tesla. The offerings from the other car companies do not currently surpass Tesla in any meaningful way I can see, and the assumption that the other car companie can "will into being" a technical marvel better than Tesla, seems to continue to be only an assumption. I do not like Tesla or Musk very much, and would love for my next pickup to me an electrified F150, but none of the current electric offerings seem all that appealing if you aren't looking for a Tesla or can't reasonably commute in a Leaf. I am still skeptical I will be able to buy an F150 electric within the next 2 or 3 years, and would not be surprised to have to wait 3-5 years as they work out the kinks. I am not looking to plunk down 100k+ on GM's Hummer, either. Dislike for Musk aside, I have to acknowledge Tesla is delivering a reasonable vehicle (discounting the stupid auto -pilot that isn't auto-pilot), whereas most other companies are still delivering small numbers of electric vehicles, but large marketing campaigns, which seem aimed at getting people to continue to wait on buying an electric car, because the next best version is always just around the corner.

andrewmcwatters 5y ago

What the hell is so hard with taking stamped metal, making something look better than the cookie cutter crap we have today, sticking a giant Eneloop on it, and tossing in a 23-inch non-automotive grade touchscreen monitor powered by some AMD game console grade x64 processor on Ubuntu? That's a step away from what Tesla is doing today, and I'd rather buy that than any of the trash BMW, Daimler, or Volkswagen are selling today. These manufacturers are sitting on their hands. And it's not just the tech. It's everything. My Audi A4 has virtually the same moonroof on it from 2007 that is being sold on the highest end trim A4s today. It's stamped metal. Make it look hot already, and not like some car version of a short bus. Tesla struggles with demand because everyone already knows what they want and zero manufacturers want to sell it.

TMWNN 5y ago
>What the hell is so hard with taking stamped metal, making something look better than the cookie cutter crap we have today, sticking a giant Eneloop on it, and tossing in a 23-inch non-automotive grade touchscreen monitor powered by some AMD game console grade x64 processor on Ubuntu? Right. What I don't understand is why automakers don't release the same vehicle with the drivetrain type as an option. Big two-page spread ad in magazines that show what looks like two identical units of the same car with the headline "Can you tell the difference?", with the text below the cars describing how you can get the model you want regardless of whether you prefer gas or electric. When Apple transitioned from PowerPC to Intel in 2006 it did not redesign the MacBook Pro; it just stuck an Intel CPU inside. Same with the Power Macintosh, Mac Mini, and iMac; only the lowest-end iBook became a MacBook The M1 MacBooks' exteriors are identical to the Intel models they replaced. Why can't automakers do this?
- fomine3 5y ago
  > What I don't understand is why automakers don't release the same vehicle with the drivetrain type as an option. Because it's core component that takes much space. Powertrain decides overall car layout/design. Having that said, there are some cars supports multiple configuration like PHEV/EV vs pure ICE, but I believe most of them are SUV style because there are many spaces to put powertrain.