Car-crazy Californians slow their purchases of new vehicles

New car sales in the largest U.S. auto market have slowed this year as more and more drivers opt for less-expensive used cars. One reason could be that cars make up a bigger percentage of new model sales in California than around the rest the country. Californians, who have long been known for their love of cars and trucks, are still buying vehicles. But they are increasingly turning to the used market. In addition, the California car group now estimates sales of fully electric vehicles will top


New car sales in the largest U.S. auto market have slowed this year as more and more drivers opt for less-expensive used cars. One reason could be that cars make up a bigger percentage of new model sales in California than around the rest the country. Californians, who have long been known for their love of cars and trucks, are still buying vehicles. But they are increasingly turning to the used market. In addition, the California car group now estimates sales of fully electric vehicles will top
Car-crazy Californians slow their purchases of new vehicles Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: phil lebeau
Keywords: news, cnbc, companies, purchases, sales, carcrazy, vehicles, california, slow, model, half, used, car, state, cars, californians, market


Car-crazy Californians slow their purchases of new vehicles

New car sales in the largest U.S. auto market have slowed this year as more and more drivers opt for less-expensive used cars.

New vehicles sales in California dropped 5.6% in the first half of 2019, setting the state on track for full-year sales to fall short of 2 million vehicles for the first time since 2014, according to the California New Car Dealers Association.

“It is not a huge surprise that after years of increased sales, we are seeing the market level off, reflecting the broader economic and political climates,” Ted Nicholas, the association’s chairman, said in a release Wednesday announcing sales for the first half of the year.

The drop in new vehicle sales in California is greater than the 1.5% decline seen in the U.S. from January through June. One reason could be that cars make up a bigger percentage of new model sales in California than around the rest the country. Sales of new cars, which include sedans and compacts, dropped by 10.8% during the first half of the year across the state while sales of new pickups, SUV’s, crossover utility vehicles and other light trucks fell by 1.1%.

Californians, who have long been known for their love of cars and trucks, are still buying vehicles. But they are increasingly turning to the used market. Sales of preowned models in California climbed more than 5% in the first half of the year.

Sales of new electric and hybrid vehicles continue to climb in a state where green transportation is in demand. In fact, the trade group says EVs and hybrids made up 13% of all new models sold. In addition, the California car group now estimates sales of fully electric vehicles will top 100,000 this year.

Much of the rise in EV sales in the Golden State is due largely to the popularity of the Tesla Model 3, which is built in Fremont, just outside of San Francisco. In the first half of this year, Californians bought 33,005 Model 3s. That means 1 in 4 Model 3s sold worldwide in the first half of this year was purchased in California.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: phil lebeau
Keywords: news, cnbc, companies, purchases, sales, carcrazy, vehicles, california, slow, model, half, used, car, state, cars, californians, market


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Tesla’s chaotic year after Musk’s ‘funding secured’ tweet

Yuriko Nakao | Bloomberg | Getty ImagesA year ago, Tesla shares jumped to near-record levels as CEO Elon Musk tweeted he had “funding secured” to take the company private at $420 a share. Tesla’s shares have tumbled 36% over the last year to a Thursday close of $238.30, wiping out roughly a third of its market value, which now stands at $42.7 billion. Tesla’s shares fell by about 16% over those three weeks from their close of $379.57 a share the day Musk tweeted “funding secured.” Other analysts


Yuriko Nakao | Bloomberg | Getty ImagesA year ago, Tesla shares jumped to near-record levels as CEO Elon Musk tweeted he had “funding secured” to take the company private at $420 a share. Tesla’s shares have tumbled 36% over the last year to a Thursday close of $238.30, wiping out roughly a third of its market value, which now stands at $42.7 billion. Tesla’s shares fell by about 16% over those three weeks from their close of $379.57 a share the day Musk tweeted “funding secured.” Other analysts
Tesla’s chaotic year after Musk’s ‘funding secured’ tweet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-08  Authors: michael wayland
Keywords: news, cnbc, companies, musks, secured, share, vehicles, funding, model, sec, safety, teslas, company, musk, chaotic, tesla, shares


Tesla's chaotic year after Musk's 'funding secured' tweet

Elon Musk, co-founder and chief executive officer of Tesla Motors. Yuriko Nakao | Bloomberg | Getty Images

A year ago, Tesla shares jumped to near-record levels as CEO Elon Musk tweeted he had “funding secured” to take the company private at $420 a share. The now-infamous tweet on Aug. 7, 2018 marked the beginning of a chaotic 12 months for the Silicon Valley automaker that set new performance records coupled with some extreme low points, which have brought litigation, government inquiries, layoffs and operational challenges. A September settlement agreement with the Securities and Exchange Commission removed Musk from his chairman role while the company. Neither Musk nor Tesla had to admit any wrongdoing under the settlement, but they couldn’t deny wrongdoing, either. Tesla’s shares have tumbled 36% over the last year to a Thursday close of $238.30, wiping out roughly a third of its market value, which now stands at $42.7 billion. Still, it’s far from all bad for Tesla. The company reported two consecutive quarterly profits for the first time ever and it significantly increased production to about 7,000 vehicles per week. However, even many of Tesla’s positive milestones have been shrouded in controversy, including recent claims the company made on the safety of its Model 3 sedan that have been called into question by the U.S. National Highway Traffic Safety Administration. Tesla didn’t immediately respond to requests for comment. Here’s a look at some of the highlights, and low lights, from Tesla’s turbulent year since the “funding secured” tweet and how the market reacted:

‘Staying public’

Weeks after Musk’s initial tweet, he announced Tesla would remain a publicly traded company on Aug. 24. Musk, in a blog post, said the decision was based on the process being “even more time-consuming and distracting than initially anticipated” and shareholders, “in a nutshell,” saying, “please don’t do this.” Tesla’s shares fell by about 16% over those three weeks from their close of $379.57 a share the day Musk tweeted “funding secured.”

Weed and the Joe Rogan show

Musk stunned the world when the CEO smoked what appeared to be a joint on the Joe Rogan podcast during a wide-ranging interview on Sept. 6. The podcast sparked calls for his resignation and questions about his mental stability. It also drove shares down 6.3% the next day.

SEC lawsuit

Musk was sued by the SEC on Sept. 27, causing shares of the automaker to fall more than 13% in extended trading to roughly 30% below its 52-week high of $387.46 on Aug. 7, 2018. The SEC complaint alleged that Musk issued “false and misleading” statements and failed to properly notify regulators of material company events. Musk called the allegations “unjustified” and said he “never compromised” his integrity. “This unjustified action by the SEC leaves me deeply saddened and disappointed,” Musk said in a statement to CNBC. “I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.”

Tesla cars are delivered to a showroom in Brooklyn, New York on April 25, 2019. Spencer Platt | Getty Images

Settlement reached

Two days after the SEC filing, the two sides announced a settlement that included $40 million in fines and Musk giving up his role as chairman for at least three years. The fines were split evenly between Musk and Tesla. The company’s shares jumped 17.35% the following day to $310.70 – the highest single-day gain in the past 12 months for the automaker.

‘Shortseller Enrichment Commission’

Days after settling the fraud charges against him, Musk mocked the SEC in an Oct. 4 tweet, calling the agency the “Shortseller Enrichment Commission.” Shares of the automaker fell more than 2% after hours following the tweet, after already falling 4.4% while the markets were open. Shares closed the following day down 7% at $261.95 per share.

‘Historic’ quarter

The company reported a surprise profit and big jump in revenue for the third quarter on Oct. 24, sending the stock soaring by more than 12%. Musk told analysts on a call it was an “incredibly historic quarter” for the company, which was still working on ramping-up production of the Model 3 sedan.

New chair

Tesla board member Robyn Denholm, the former COO and CFO at Australian telecom company Telstra, was named to replace Musk as chairperson of the company on Nov. 7. Tesla shares closed the following day slightly up to $351.40 per share.

Robyn Denholm Source: Telstra

China

Musk and Shanghai Mayor Ying Yong on Jan. 6 celebrated the groundbreaking of the electric automaker’s first non-U.S. factory on the outskirts of Shanghai. Producing vehicles in China is expected to reduce costs from tariffs and ocean transport for Tesla. According to the company, the so-called Gigafactory in Shanghai “will allow Tesla to localize production of Model 3 and future models sold in China, with plans to eventually produce approximately 3,000 Model 3 vehicles per week in the initial phase and to ramp up to 500,000 vehicles per year when fully operational (subject to local factors including regulatory approval and supply chain constraints).”

Tesla CEO Elon Musk speaks during a meeting with Chinese Premier Li Keqiang (not pictured) at the Zhongnanhai leadership compound in Beijing on January 9, 2019. MARK SCHIEFELBEIN | AFP | Getty Images

Layoffs

In January, Tesla said it would cut 7% of its workforce. In a Jan. 18 email to employees, Musk said the company faces a “very difficult” road ahead in its long-term goal to sell affordable renewable energy products, noting the company is younger than other players in the industry. The January layoffs impacted at least 1,017 California employees, according to the company’s filings with the state’s Employment Development Department Shares of the company fell 13% to $302.26 per share after Musk’s email was reported.

Another profit

Tesla reported its second-consecutive quarterly profit during the fourth quarter on Jan. 30. But Wall Street analysts expected even more and its shares fell by about 5% in after-hours trading.

SEC-Musk: Round 2

Musk’s deal with the SEC appeared to be in jeopardy when it asked a judge on Feb. 25 to hold Elon Musk in contempt for violating its settlement deal. The SEC cited an “inaccurate” Feb. 19 tweet about vehicle production. On that date, Musk tweeted — then revised — projections for full-year Tesla manufacturing numbers of “around” 50,000 units. After months of back-and-forth, the SEC and Musk reached an agreement over the use of his use of Twitter account. It detailed exactly what kind of information requires formal legal review before being shared.

Credits into cash

Tesla has made over $1 billion in the last three years by selling emissions credits in the United States, including a reported deal in April with Fiat Chrysler. The Italian-U.S. carmaker agreed to pay Tesla hundreds of millions of euros to allow Tesla vehicles to be counted in its fleet to avoid fines for violating new European Union emission rules. The reported deal did little to move the company’s shares, which were trading around $270 a share at the time.

Below $200 a share

Tesla stock dipped below $200 a share in late-May as Morgan Stanley auto analyst Adam Jonas cut the firm’s worst-case forecast on Tesla’s stock from $97 a share to just $10, citing concerns about the company’s increased debt load and geopolitical exposure. Other analysts lowered their expectations, including Goldman Sachs, which slashed its price target a month later on concerns about demand for Tesla vehicles. UBS’ Colin Langan also cut his price target by 20% in June to $160 a share and reiterated his sell rating. The concerns followed several changes to Tesla’s business plans, including an announcement to shift to an online sales model that would result in many store closings and price cuts. Tesla stock hit its lowest closing price in two and a half years on June 3 at $178.97 per share.

NHTSA cease-and-desist

The National Highway Traffic Safety Administration sent Musk a cease-and-desist letter in October regarding “misleading statements” made in a blog post that month about the Model 3 having “the lowest probability of injury of all cars the safety agency has ever tested.” The NHTSA, which awarded the Model 3 an overall 5-star safety rating for the 2017 model, said it referred the matter to the Federal Trade Commission’s Bureau of Consumer Protection, according to a copy of the letter, which was posted earlier this week on the legal transparency website PlainSite.

Visitors look at a Tesla Model 3 during a press preview of the Seoul Motor Show in Goyang, northwest of Seoul, on March 28, 2019. Jung Yeon-Je | AFP | Getty Images

Rebound


Company: cnbc, Activity: cnbc, Date: 2019-08-08  Authors: michael wayland
Keywords: news, cnbc, companies, musks, secured, share, vehicles, funding, model, sec, safety, teslas, company, musk, chaotic, tesla, shares


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Tesla received a cease-and-desist letter from US agency over Model 3 safety claims

The U.S. National Highway Traffic Safety Administration (NHTSA) sent Tesla a letter regarding claims the company made on the safety of its Model 3 sedan. NHTSA Chief Counsel Jonathan Morrison sent Tesla CEO Elon Musk a cease-and-desist letter in October last year to say it had become aware of “misleading statements” made by the company about the vehicle’s safety rating. The agency’s main contention was with Tesla’s claim in a blog post that month that NHTSA tests showed the Model 3 has “the lowe


The U.S. National Highway Traffic Safety Administration (NHTSA) sent Tesla a letter regarding claims the company made on the safety of its Model 3 sedan. NHTSA Chief Counsel Jonathan Morrison sent Tesla CEO Elon Musk a cease-and-desist letter in October last year to say it had become aware of “misleading statements” made by the company about the vehicle’s safety rating. The agency’s main contention was with Tesla’s claim in a blog post that month that NHTSA tests showed the Model 3 has “the lowe
Tesla received a cease-and-desist letter from US agency over Model 3 safety claims Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: ryan browne
Keywords: news, cnbc, companies, sent, claims, agency, model, ceaseanddesist, vehicles, received, safety, company, transparency, website, nhtsa, tesla, letter


Tesla received a cease-and-desist letter from US agency over Model 3 safety claims

The U.S. National Highway Traffic Safety Administration (NHTSA) sent Tesla a letter regarding claims the company made on the safety of its Model 3 sedan.

NHTSA Chief Counsel Jonathan Morrison sent Tesla CEO Elon Musk a cease-and-desist letter in October last year to say it had become aware of “misleading statements” made by the company about the vehicle’s safety rating.

The agency’s main contention was with Tesla’s claim in a blog post that month that NHTSA tests showed the Model 3 has “the lowest probability of injury of all cars the safety agency has ever tested.”

The NHTSA said in the letter, which was posted on the legal transparency website PlainSite, that it had also referred the matter to the Federal Trade Commission’s Bureau of Consumer Protection.


Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: ryan browne
Keywords: news, cnbc, companies, sent, claims, agency, model, ceaseanddesist, vehicles, received, safety, company, transparency, website, nhtsa, tesla, letter


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Former Audi boss charged in the VW diesel scandal that won’t die

Audi Chairman, Rupert Stadler, gazing ahead at the International Motor Show (IAA) in Frankfurt am Main, Germany, 14 September 2017. Prosecutors in Germany on Wednesday charged four former employees, including one-time Audi Chief Executive Rupert Stadler, for their role in the scandal. Others caught up in the scandal include former Volkswagen CEO Martin Winterkorn who was charged in April for his alleged role in the cover-up. The scandal originally appeared to involve just one four-cylinder diese


Audi Chairman, Rupert Stadler, gazing ahead at the International Motor Show (IAA) in Frankfurt am Main, Germany, 14 September 2017. Prosecutors in Germany on Wednesday charged four former employees, including one-time Audi Chief Executive Rupert Stadler, for their role in the scandal. Others caught up in the scandal include former Volkswagen CEO Martin Winterkorn who was charged in April for his alleged role in the cover-up. The scandal originally appeared to involve just one four-cylinder diese
Former Audi boss charged in the VW diesel scandal that won’t die Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-31  Authors: paul a eisenstein
Keywords: news, cnbc, companies, billion, wont, audi, boss, germany, volkswagen, emissions, diesel, charged, vw, stadler, vehicles, scandal, die


Former Audi boss charged in the VW diesel scandal that won't die

Audi Chairman, Rupert Stadler, gazing ahead at the International Motor Show (IAA) in Frankfurt am Main, Germany, 14 September 2017. Arne Dedert | dpa | picture alliance | Getty Images

Nearly four years after the automaker admitted cheating on diesel emissions tests, and after Volkswagen has now spent more than 30 billion euros on fines, settlements and other costs, its diesel emissions scandal continues to take a toll. Prosecutors in Germany on Wednesday charged four former employees, including one-time Audi Chief Executive Rupert Stadler, for their role in the scandal. The 56-year-old Stadler, once seen as a rising star at the Volkswagen, faces allegations that include fraud for helping conceal the fact that VW had rigged its diesel engines to illegally pass emissions tests. Others caught up in the scandal include former Volkswagen CEO Martin Winterkorn who was charged in April for his alleged role in the cover-up. What some have dubbed “Dieselgate” could yet stretch on as prosecutors in both the U.S. and Germany continue to look into the case and as the U.S. Securities and Exchange Commission continues to slowly move forward on its own lawsuit targeting the world’s largest automaker.

Defeat device

The scandal was uncovered by the U.S. Environmental Protection Agency in September 2015, the agency discovering a “defeat device” was used to detect when one of Volkswagen’s diesels was undergoing emissions tests and then adjust the way the engine operated. All told, more than 11 million vehicles using VW’s faulty diesels were sold in the U.S., Europe and other parts of the world, though the allegations against Stadler cover only about 434,000 of them. The scandal originally appeared to involve just one four-cylinder diesel engine primarily used in Volkswagen-branded models. But, in November 2015, Audi confirmed that a 3.0-liter diesel engine used in its TDI models, as well as some VW and Porsche products, had also been rigged to illegally pass emissions tests. In real-world operations, some of the vehicles produced as much as 40 times more pollutants than legally allowed.

Volkswagen Group CEO Martin Winterkorn arrives for the Volkswagen annual general shareholders’ meeting on May 5, 2015 in Hanover, Germany. Getty Images

That triggered a tidal wave of legal headaches for the German carmaker, which rushed to work out settlements with U.S. and California regulators, as well as with owners and investors. That included, among other things: A buyback plan for more than 400,000 of the diesel vehicles sold in the U.S., though many were subsequently repaired, owners received various levels of financial compensation; The creation of Electrify America, a Washington, D.C.-based company that is helping promote the sale of electric vehicles – of all brands – while also setting up a nationwide public charging network; Additional fines and settlements have so far brought the total cost of the scandal to around 30 billion Euros, or $33.4 billion at current exchange rates.

Scandal could drag on ‘for years’

And the financial cost could go higher. VW CEO Herbert Diess acknowledged in comments earlier this year that the scandal could drag on for “years.” In May, the automaker set aside another 5.5 billion euros in contingent liabilities.

It may need to tap that to deal with the lawsuit filed by the SEC in March, the action targeting both VW and former CEO Winterkorn. The agency contends the company concealed the depth of the scandal — and the potential penalties — from investors and federal regulators. Its complaint noted that, in the year before the cheating was discovered, Volkswagen issued $13 billion in bonds and securities in the U.S. Their value was directly impacted once the carmaker’s scam was revealed. The SEC has come under fire itself. Among the critics questioning why it took so long to sue was U.S. District Judge Charles Breyer who, in May, said he was “totally mystified” by why the lawsuit wasn’t filed until this year. In a court filing this month, the agency said its “staff worked hard and as quickly as possible under very difficult circumstances.” It also said it sued only after negotiations with VW failed to come up with a voluntary settlement.

Emissions testing equipment sits in the exhaust of an Audi AG A5 diesel automobile at a garage in Bruchkoebel, Germany, July 26, 2017. Alex Kraus | Bloomberg | Getty Images

The indictment

Under the indictment announced Wednesday, German prosecutors said “Defendant Stadler is accused of having been aware of the manipulations since the end of September 2015 at the latest, but he did not prevent the sale of affected Audi and VW vehicles thereafter.” Fraud and other charges were also filed targeting Wolfgang Hatz, a former executive who had worked on powertrain development with both the Audi and Porsche brands, as well as two engineers. So far, more than a dozen one-time Volkswagen employees have been charged in the U.S. and Europe in connection with the case. The highest-ranking target is Winterkorn, prosecutors in Braunschweig alleging he learned about the emissions test rigging no later than May 2014 but failed to notify authorities in the U.S. and Europe, while also failing to stop the use of the defeat device technology.

Seven-year sentence


Company: cnbc, Activity: cnbc, Date: 2019-07-31  Authors: paul a eisenstein
Keywords: news, cnbc, companies, billion, wont, audi, boss, germany, volkswagen, emissions, diesel, charged, vw, stadler, vehicles, scandal, die


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As electric vehicle production ramps up worldwide, a supply crunch for battery materials is looming

Workers are seen at the production line of lithium-ion batteries for electric vehicles (EV) at a factory in Huzhou, Zhejiang province, China. As car manufacturers ramp up production of electric cars, the metals used to make the vehicles’ batteries may face a supply crunch in the next few years, according to a new report. That’s as analysts predict a boom in electric vehicle use over the next three decades, but cite limited new metal production. For now, supplies of those three metals are enough


Workers are seen at the production line of lithium-ion batteries for electric vehicles (EV) at a factory in Huzhou, Zhejiang province, China. As car manufacturers ramp up production of electric cars, the metals used to make the vehicles’ batteries may face a supply crunch in the next few years, according to a new report. That’s as analysts predict a boom in electric vehicle use over the next three decades, but cite limited new metal production. For now, supplies of those three metals are enough
As electric vehicle production ramps up worldwide, a supply crunch for battery materials is looming Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: stella soon
Keywords: news, cnbc, companies, battery, supplies, worldwide, research, production, looming, supply, crunch, vehicle, materials, electric, demand, wood, ramps, producers, metals, vehicles


As electric vehicle production ramps up worldwide, a supply crunch for battery materials is looming

Workers are seen at the production line of lithium-ion batteries for electric vehicles (EV) at a factory in Huzhou, Zhejiang province, China.

As car manufacturers ramp up production of electric cars, the metals used to make the vehicles’ batteries may face a supply crunch in the next few years, according to a new report.

Lithium, cobalt, and nickel supplies are expected to be worst hit, the Wednesday report from energy consulting and research firm Wood Mackenzie. That’s as analysts predict a boom in electric vehicle use over the next three decades, but cite limited new metal production.

For now, supplies of those three metals are enough to meet demand, according to Gavin Montgomery, research director at Wood Mackenzie. But short-term market prices of those metals have fallen, and that will deter producers from increasing supply to meet future demand, he added.

In fact, in the next few years, demand for the metals is expected to grow so rapidly — as car producers make more electric vehicles — that suppliers won’t be able to keep up, Montgomery noted.

Montgomery isn’t the only one predicting a future supply crunch.


Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: stella soon
Keywords: news, cnbc, companies, battery, supplies, worldwide, research, production, looming, supply, crunch, vehicle, materials, electric, demand, wood, ramps, producers, metals, vehicles


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Tesla suffers its worst day of the year after brutal earnings report and loss of technology chief

That’s the biggest decline since the shares fell 13.9% on Sept. 28, 2018. At times on Thursday, the stock was down more than 14%, which would’ve been the steepest drop since 2013. Steve McManus, who was a vice president in charge of engineering for car interiors and exteriors at Tesla, recently joined Apple, which also lured former Tesla vice president Michael Schwekutsch to join its Special Projects Group earlier this year. In June, the company lost Peter Hochholdinger, who ran manufacturing at


That’s the biggest decline since the shares fell 13.9% on Sept. 28, 2018. At times on Thursday, the stock was down more than 14%, which would’ve been the steepest drop since 2013. Steve McManus, who was a vice president in charge of engineering for car interiors and exteriors at Tesla, recently joined Apple, which also lured former Tesla vice president Michael Schwekutsch to join its Special Projects Group earlier this year. In June, the company lost Peter Hochholdinger, who ran manufacturing at
Tesla suffers its worst day of the year after brutal earnings report and loss of technology chief Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: ari levy lora kolodny, ari levy, lora kolodny
Keywords: news, cnbc, companies, model, thats, weekly, vice, brutal, suffers, worst, chief, company, earnings, straubel, tesla, technology, day, vehicles, report, loss, fell, president


Tesla suffers its worst day of the year after brutal earnings report and loss of technology chief

Tesla shares suffered their steepest drop of the year after the electric car maker reported a wider-than-expected loss and disappointing revenue and announced the departure of co-founder and Chief Technology Officer JB Straubel from the executive ranks.

The stock plunged 13.6% to $228.82 at the close. That’s the biggest decline since the shares fell 13.9% on Sept. 28, 2018. At times on Thursday, the stock was down more than 14%, which would’ve been the steepest drop since 2013.

The company says it has a weekly run-rate of 7,000 of its most popular Model 3 vehicles, and aims to be able to produce 10,000 Model 3s weekly by the end of 2019. But costs related to sales and servicing are also way up, weighing on profitability. Gross margin, or the money left from sales after subtracting costs of goods sold, fell to 14.5% from 15.5% a year ago.

“For the bulls this is a disaster story in terms of gross margin,” said Dan Ives, managing director of equity research at Wedbush Securities, on CNBC’s “Closing Bell” on Wednesday. “You can sell more cars — can you do it profitably? If not, ultimately this company will have to raise more capital next year. That’s why it’s such an issue for the Street.”

During the call with analysts after the report, CEO Elon Musk dropped another bombshell when he announced that Straubel was moving from CTO to an advisory role. Straubel is best known for helping to create Tesla’s signature battery technology. He also oversaw power electronics, motors, software, firmware and controls, among other responsibilities during his tenure.

Straubel, who will be succeeded by Drew Baglino, a vice president at the company, is the latest high-profile departure from Tesla’s executive ranks as brain drain continues to be another big concern for investors. Steve McManus, who was a vice president in charge of engineering for car interiors and exteriors at Tesla, recently joined Apple, which also lured former Tesla vice president Michael Schwekutsch to join its Special Projects Group earlier this year. In June, the company lost Peter Hochholdinger, who ran manufacturing at the factory in Fremont, California, to Lucid Motors.

In the second quarter, Tesla lost $1.12 per share on an adjusted basis, compared to the average analyst estimate of 40 cents, according to Refinitiv. Revenue climbed 59% to $6.35 billion, but trailed the $6.41 billion average analyst estimate.

Although the company fell short of expectations, it reaffirmed full-year delivery guidance, saying it still expects to sell 360,000 to 400,000 vehicles this year, mostly Model 3s. Tesla delivered around 158,200 of its cars to customers in the first six months of 2019 and has to deliver more than 200,000 in the back half of the year to hit the low-end of its guidance.


Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: ari levy lora kolodny, ari levy, lora kolodny
Keywords: news, cnbc, companies, model, thats, weekly, vice, brutal, suffers, worst, chief, company, earnings, straubel, tesla, technology, day, vehicles, report, loss, fell, president


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Tesla falls after posting wider-than-expected loss

Tesla plunged 10% in extended trading after posting a larger-than-expected loss on Wednesday in a second quarter earnings update. Here’s what Tesla reported, versus what analysts expected based on average estimates compiled by Refinitiv:Loss per share on an adjusted basis: $1.12 vs. 40 cents expectedRevenue: $6.35 billion versus $6.41 billion expectedThat compares with an adjusted loss of $3.06 per share on $4 billion in revenue during the same period last year. Tesla delivered around 158,200 of


Tesla plunged 10% in extended trading after posting a larger-than-expected loss on Wednesday in a second quarter earnings update. Here’s what Tesla reported, versus what analysts expected based on average estimates compiled by Refinitiv:Loss per share on an adjusted basis: $1.12 vs. 40 cents expectedRevenue: $6.35 billion versus $6.41 billion expectedThat compares with an adjusted loss of $3.06 per share on $4 billion in revenue during the same period last year. Tesla delivered around 158,200 of
Tesla falls after posting wider-than-expected loss Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: lora kolodny christine wang, lora kolodny, christine wang
Keywords: news, cnbc, companies, falls, guidance, company, loss, weekly, tesla, model, share, billion, vehicles, posting, versus, widerthanexpected


Tesla falls after posting wider-than-expected loss

Tesla plunged 10% in extended trading after posting a larger-than-expected loss on Wednesday in a second quarter earnings update.

Here’s what Tesla reported, versus what analysts expected based on average estimates compiled by Refinitiv:

Loss per share on an adjusted basis: $1.12 vs. 40 cents expected

Revenue: $6.35 billion versus $6.41 billion expected

That compares with an adjusted loss of $3.06 per share on $4 billion in revenue during the same period last year.

Although the electric car company fell short of analysts’ expectations, it reaffirmed full-year delivery guidance, saying it still expects to sell 360,000 to 400,000 vehicles this year, mostly Model 3s.

Tesla delivered around 158,200 of its cars to customers in the first six months of 2019. It has to deliver more than 200,000 in the back half of the year to hit the low-end of its guidance. The company says it has a weekly run-rate of 7,000 Model 3 vehicles, and aims to be able to produce 10,000 Model 3s weekly by the end of 2019.

To make high-volume sales of the Model 3 possible, Tesla said in its second-quarter letter, it plans to improve production at its existing factories including its battery plant outside of Reno, Nevada and a car assembly in Fremont, California.


Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: lora kolodny christine wang, lora kolodny, christine wang
Keywords: news, cnbc, companies, falls, guidance, company, loss, weekly, tesla, model, share, billion, vehicles, posting, versus, widerthanexpected


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Daimler and Bosch get green light for ‘world’s first’ automated valet parking system

Daimler and Bosch have been granted approval to roll out an automated parking system in Stuttgart, Germany. In an announcement Tuesday, German auto giant Daimler said that the automated valet service would be introduced at the parking garage of the Mercedes-Benz Museum. Daimler said that the system was the “world’s first fully automated driverless SAE Level 4 parking function to be officially approved for everyday use.” At Level 5, a vehicle’s automated driving features can drive it under all co


Daimler and Bosch have been granted approval to roll out an automated parking system in Stuttgart, Germany. In an announcement Tuesday, German auto giant Daimler said that the automated valet service would be introduced at the parking garage of the Mercedes-Benz Museum. Daimler said that the system was the “world’s first fully automated driverless SAE Level 4 parking function to be officially approved for everyday use.” At Level 5, a vehicle’s automated driving features can drive it under all co
Daimler and Bosch get green light for ‘world’s first’ automated valet parking system Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-23  Authors: anmar frangoul
Keywords: news, cnbc, companies, valet, system, technology, level, driving, parking, light, vehicle, vehicles, daimler, green, bosch, automated, worlds


Daimler and Bosch get green light for 'world's first' automated valet parking system

Daimler and Bosch have been granted approval to roll out an automated parking system in Stuttgart, Germany.

In an announcement Tuesday, German auto giant Daimler said that the automated valet service would be introduced at the parking garage of the Mercedes-Benz Museum. It will be accessed using a smartphone app and will not need a safety driver.

Daimler said that the system was the “world’s first fully automated driverless SAE Level 4 parking function to be officially approved for everyday use.”

Five “levels” of driving automation have been defined by SAE International, a global association of over 128,000 engineers and technical experts. At Level 4, a vehicle can drive itself under limited conditions and “will not operate unless all required conditions are met.” At Level 5, a vehicle’s automated driving features can drive it under all conditions.

Michael Hafner, who is head of drive technologies and automated driving at Daimler, said in a statement Tuesday that gaining approval from authorities in Baden-Wurttemberg set “a precedent for obtaining approval in the future for the parking service in parking garages around the world.”

Hafner went on to add that the project paved the way “for automated valet parking to go into mass production in the future.”

The infrastructure for the system in Stuttgart has been supplied by Bosch, with Daimler providing the technology in the vehicles, which display turquoise lighting to indicate they are in driverless mode.

When the driver of a vehicle with the appropriate technology reaches the car park, they get out and use their smartphone to send their car to a space. The vehicle then drives to that space and parks up.

Sensors from Bosch assess the “driving corridor” of the garage and its surroundings, sending the vehicle all the information it needs. The vehicle processes this data to plot its maneuvers and route, driving up and down ramps to move through the garage if required. If an obstacle is detected, the vehicle will stop.

Around the world, major businesses are working to develop autonomous driving systems. It was only last week that another car giant, Groupe PSA, announced it was conducting tests in the Spanish city of Vigo to “advance the development of autonomous driving”.

The collaboration with the Automotive Technology Centre of Galicia will focus on a number of areas, including the protection of vulnerable users; automated valet parking; autonomous driving in urban areas; and “optimal speed regulation” when vehicles approach traffic lights.


Company: cnbc, Activity: cnbc, Date: 2019-07-23  Authors: anmar frangoul
Keywords: news, cnbc, companies, valet, system, technology, level, driving, parking, light, vehicle, vehicles, daimler, green, bosch, automated, worlds


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UK authorities invest nearly $100 million into electric vehicle research

The U.K. government has announced £80 million ($99.7 million) of investment to develop the “next generation of electric vehicles” and, potentially, hybrid aircraft. Authorities said Monday that the funding would, among other things, help to reduce carbon emissions from industries including transport, construction and energy. These are a range of products that can be used to convert fossil fuel-based systems into electric ones using batteries or other electrical sources. “Driving the electric rev


The U.K. government has announced £80 million ($99.7 million) of investment to develop the “next generation of electric vehicles” and, potentially, hybrid aircraft. Authorities said Monday that the funding would, among other things, help to reduce carbon emissions from industries including transport, construction and energy. These are a range of products that can be used to convert fossil fuel-based systems into electric ones using batteries or other electrical sources. “Driving the electric rev
UK authorities invest nearly $100 million into electric vehicle research Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: anmar frangoul
Keywords: news, cnbc, companies, develop, nearly, 100, toyota, research, vehicles, million, using, vehicle, uk, electric, uks, invest, investment, authorities, transport


UK authorities invest nearly $100 million into electric vehicle research

The U.K. government has announced £80 million ($99.7 million) of investment to develop the “next generation of electric vehicles” and, potentially, hybrid aircraft.

Authorities said Monday that the funding would, among other things, help to reduce carbon emissions from industries including transport, construction and energy.

Industry and academia are set to lead the development of the new technologies, which the government referred to as power electronics, electric machines and drives (PEMD). These are a range of products that can be used to convert fossil fuel-based systems into electric ones using batteries or other electrical sources.

The investment comes under the umbrella of something called the Industrial Strategy Future of Mobility Grand Challenge. Targets of this challenge include getting rid of diesel rolling stock from the U.K.’s railways by 2040 and delivering zero-carbon road transport by 2040.

“Driving the electric revolution will strengthen the U.K.’s capability to deliver next generation electric vehicles, hybrid aircraft and smart grids,” Mark Walport, the chief executive of U.K. Research and Innovation, said in a statement Monday.

“It will ensure these industries, both large and small, are rooted here in the U.K. attracting inward investment into our manufacturing base,” he added.

Elsewhere within the electric vehicle sector, Toyota has signed an agreement with China’s BYD Company to jointly develop battery electric vehicles.

In an announcement Friday, Toyota said it would work with BYD to develop sedans and low-floor SUVs. The Japanese car giant said it wanted to launch the vehicles to the Chinese market, using the Toyota brand, “in the first half of the 2020s.”


Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: anmar frangoul
Keywords: news, cnbc, companies, develop, nearly, 100, toyota, research, vehicles, million, using, vehicle, uk, electric, uks, invest, investment, authorities, transport


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The UK government wants to fit all new homes with charging points for electric cars

The UK government unveiled plans which could see all new-build homes fitted with electric-car charging points. In addition, authorities want all newly-installed rapid and higher-powered public charge points to take debit or credit card payments by the spring of 2020. Currently, electric car users can apply for a grant of up to £500 off the cost of installing a charge point at their residence. Worldwide electric car sales hit 1.98 million in 2018, according to the International Energy Agency (IEA


The UK government unveiled plans which could see all new-build homes fitted with electric-car charging points. In addition, authorities want all newly-installed rapid and higher-powered public charge points to take debit or credit card payments by the spring of 2020. Currently, electric car users can apply for a grant of up to £500 off the cost of installing a charge point at their residence. Worldwide electric car sales hit 1.98 million in 2018, according to the International Energy Agency (IEA
The UK government wants to fit all new homes with charging points for electric cars Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: anmar frangoul
Keywords: news, cnbc, companies, points, car, fit, uk, charging, cars, electric, charge, homes, plans, million, iea, newbuild, vehicles, wants


The UK government wants to fit all new homes with charging points for electric cars

The UK government unveiled plans which could see all new-build homes fitted with electric-car charging points.

The plans, which were laid out in a consultation published Monday, would look to support what the government described as “the growing uptake of electric vehicles within the U.K.”

If put into practice, all new-build homes with dedicated parking spaces would have charging points to make vehicle charging cheaper and more convenient for drivers.

In addition, authorities want all newly-installed rapid and higher-powered public charge points to take debit or credit card payments by the spring of 2020.

In a statement Monday, Transport Secretary Chris Grayling said that there was “an appetite for cleaner, greener transport.”

“Home charging provides the most convenient and low-cost option for consumers — you can simply plug your car in to charge overnight as you would a mobile phone,” Grayling added.

Currently, electric car users can apply for a grant of up to £500 off the cost of installing a charge point at their residence.

While electric vehicles are becoming the car of choice for an increasing number of drivers, they nevertheless face challenges, not least when it comes to perceptions surrounding range and charging infrastructure.

Worldwide electric car sales hit 1.98 million in 2018, according to the International Energy Agency (IEA), with global stock reaching 5.12 million. China’s electric car market is the biggest on the planet, the IEA says, with Europe and the U.S. following behind.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: anmar frangoul
Keywords: news, cnbc, companies, points, car, fit, uk, charging, cars, electric, charge, homes, plans, million, iea, newbuild, vehicles, wants


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