Tesla's Elon Musk Announces Huge Losses, Cuts Model X + S Production

Tesla reported its biggest quarterly loss in the company’s history and will reduce Model X and Model S vehicle production to focus on Model 3.

After laying off 3,000 SolarCity employees last year to improve "efficiencies," Elon Musk's Tesla Motors is also looking in bad shape, according to Business Insider UK report. Climbing out of "production hell" proves challenging. 

In a statement, Tesla said, “While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear.”

Bloomberg business highlights:

• Adjusted loss per share: -$2.92 (-$2.23 expected).
• Revenue: $2.98 billion ($2.39 billion expected).
• Free cash flow: –$1.4 billion (-$1.2 billion expected)

This is the biggest loss reported for the company but, on the other hand, they have made many groundbreaking strides in the electric vehicle, energy storage, and solar power industries: 

• world’s only fully integrated sustainable energy company
• best and highest-selling pure electric vehicles
• highest rated and safest cars in the world
• powering several islands with solar panels

It seems all the moving parts and Musk's other projects (SpaceX, HyperLoop, Boring) got a bit out of hand and he needs to bring things back in order. This is to be expected when you're changing the world; there are bound to be obstacles, conflicts, and mistakes along the way.  

“The Model 3 production process will be vastly more automated than the production process of Model S, Model X or almost any other car on the market. Bringing this level of automation online is simply challenging.”

— Elon Musk, Tesla CEO

Tesla Motors is racing to make 5,000 Model 3's per week by end of Q1 2018, and so cut Model S and X production 10% for Q4 2017.

But besides inefficiencies and production bottlenecks, former employees are upset for being given no warning or performance review for their termination. The sudden layoff for reasons they cannot see have shocked and upset many of them. Perhaps trying to keep pace with production goals and innovation, the employees' condition was overlooked and required immediate action. 

Former Tesla employee, Daniel Grant, supported the union effort because of dangerous working conditions in the factory and believes he was fired for it.

“Management pushed us hard, and it created very real risks for us working on the line,” Grant said in an email. “That’s why I wore a union T-shirt, and that’s why I handed out flyers.”

Although Tesla admits it's injury rate surpassed the industry average before, it says they have been declining steadily.

Do you still have faith in the future of sustainable energy? Is the $35k Model 3 worth the wait for you? Let us know in the comments below. 

---

SOURCES:

http://www.breitbart.com/tech/2017/11/02/tesla-announces-huge-losses/

https://www.thelayoff.com/tesla

Elon Musk's Tesla Powerwalls Have Landed in Puerto Rico

Last week, Tesla CEO Elon Musk tweeted he could help rebuild Puerto Rico's electrical grid with his company's solar panels and battery packs and Puerto Rico Governor Ricard Rossello replied in kind. 

Tesla already sent hundreds of Powerwall batteries to provide electrical stability and keep the lights on while they repair the electrical grid. Each Powerwall stores 14 Kilowatt-hours of energy, but a battery is useless without a power source, so Tesla plans to install solar panels. 

According to a photo snapped at San Juan airport Friday, Oct. 13, more Tesla Powerwalls arrived on the island. 

Tesla employees first landed in Puerto Rico a week after the hurricane, helping connect buildings with power and training locals to install their Powerwall battery packs. On September 20, ~80% of the island was without power. This is a serious issue because of the devastation left in the wake of the storm where people have lost their homes and need to communicate with each other. 

The cleaner and independent energy solution is a game-changer for any island with limited resources and geographical features that make running power lines and transporting fuel much more difficult or even impractical. Starting with centralized solar farms is a great stable start and we can expect the next steps to include smaller communities of solar cells that support each other, as illustrated in Tesla Energy video:

No Loss, No Gain

With Tesla focusing on rebuilding a great solar-powered battery storage electrical system for Puerto Rico, Elon Musk announced he had to push back the unveiling of the new Tesla Semi truck to November 16... and even fired 400+ employees. 

Anyway, looks like a brighter future for Puerto Rico and a lesson in patience and compassion for shareholders. 

Elon Musk Creates Mega-Rocket That Will Carry Astronauts To Mars

This artist's rendering made available by Elon Musk on Friday, Sept. 29, 2017 shows SpaceX's new mega-rocket design on the Earth's moon. With the 350-foot-tall spacecraft, Musk announced that his private space company aims to launch two cargo missions to Mars in 2022. (SpaceX via AP)

CAPE CANAVERAL, Fla. (AP) — SpaceX chief Elon Musk's elaborate plan for a mega-rocket to carry astronauts to Mars may have some down-to-Earth applications.

At a conference in Australia on Friday, Musk said if you build a ship capable of going to the moon and Mars, why not use it for high-speed transport here at home. He proposes using his still-in-the-design phase rocket for launching passengers from New York to Shanghai in 39 minutes flat.

Los Angeles to New York, or Los Angeles to Honolulu in 25 minutes. London to Dubai in 29 minutes.

"Most of what people consider to be long-distance trips would be completed in less than half an hour," Musk said to applause and cheers at the International Astronautical Congress in Adelaide.

SpaceX chief Elon Musk gestures as he delivers a speech at the International Astronautical Congress in Adelaide, Australia, Friday, Sept. 29, 2017. Musk's elaborate plan for a mega-rocket to carry astronauts to Mars may have some down-to-Earth applications. (Morgan Sette/AAP Image via AP)

A seat should cost about the same as a full-fare economy plane ticket, he noted later via Instagram.

Friday's address was a follow-up to one he gave to the group last September in Mexico, where he unveiled his grand scheme for colonizing Mars. He described a slightly scaled-down 348-foot-tall (106-meter-tall) rocket and announced that the private space company aims to launch two cargo missions to Mars in 2022.

"That's not a typo," he said, pausing, as charts appeared on a large screen. "Although it is aspirational."

Two more cargo missions would follow in 2024 to provide more construction materials, along with two crewed flights. The window for launching to Mars occurs every two years.

For the approximately six-month, one-way trips to Mars, the SpaceX ships would have 40 cabins, ideally with two to three people per cabin for a grand total of about 100 passengers. Musk foresees this Mars city growing, and over time "making it really a nice place to be."

Scott Hubbard, an adjunct professor at Stanford University and a former director of NASA's Ames Research Center, calls it "a bold transportation architecture with aspirational dates." A demonstration of some sort in the 2020s will add to its credibility, he said in an email. And while more details are needed for life-support systems, "Kudos to Elon and SpaceX for keeping the focus on humans to Mars!"

This artist's rendering made available by Elon Musk on Friday, Sept. 29, 2017 shows SpaceX's new mega-rocket design at the International Space Station. With the 350-foot-tall spacecraft, Musk announced that his private space company aims to launch two cargo missions to Mars in 2022. (SpaceX via AP)

Former NASA chief technologist Bobby Braun, now dean of the college of engineering and applied science at the University of Colorado at Boulder, also sees Musk's plan as a step in the right direction, building on technologies SpaceX already has demonstrated, like reusable rockets.

"While the timeline and capabilities are certainly ambitious, I'm bullish on U.S industry's ability to carry out challenging and far-reaching goals," Braun wrote in an email. "It's great to see the private sector lead in this way, and I hope we see more of it."

NASA is charting its own path to what it calls the "Deep Space Gateway," beginning with expeditions in the vicinity of the moon in the 2020s and eventually culminating at Mars. The space agency has handed much of its Earth-orbiting work to private industry, including SpaceX, Orbital ATK and Boeing.

Earlier Friday in Adelaide, Lockheed Martin presented its vision for a "Mars Base Camp" in partnership with NASA. Astronauts could be on their way in about a decade, the company said. This first mission would orbit the red planet, rather than land.

Musk intends to finance his $10 billion Mars endeavor by using a rocket that's smaller than the one outlined last year. Fewer engines would be needed: 31 versus the originally envisioned 42. Its lift capability would be 150 tons, more than NASA's old moon rocket, the Saturn V.

This artist's rendering made available by Elon Musk on Friday, Sept. 29, 2017 shows SpaceX's new mega-rocket design on Mars. With the 350-foot-tall spacecraft, Musk announced that his private space company aims to launch two cargo missions to the red planet in 2022. (SpaceX via AP)

He wants one type of booster and spaceship that can replace the company's current Falcon 9 rocket, the soon-to-fly Falcon Heavy rocket designed for heavier satellites, and the Dragon capsule presently used to deliver cargo to the International Space Station, and, as soon as next year, station astronauts.

That way SpaceX can put all its resources toward this new system, Musk said. Revenue from launching satellites, and sending supplies and crews to the space station, could pay for the new rocket, he said.

Musk said the same spaceship for moon and Mars trips — long and cylindrical with small shuttle-like wings — could fly to the space station. He said the mega-rocket could be used to establish a lunar settlement, with spaceships being refueled in Earth orbit versus creating a vital fuel depot at Mars.

The mega-rocket doesn't have a name but for now is called BFR. The B is for big; the R for rocket. As for the F, well, you get the idea.

___

Online:

SpaceX: http://www.spacex.com/