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6 Things We Learned From Tesla’s Q1 2019 Earnings Call

Juicy tidbits about the Model Y, and a new insurance product?
Writer

Tesla's first-quarter financial results disappointed many analysts today. The automaker reported a GAAP net loss of $702 million amid a record drop in deliveries. But Tesla's financial woes weren't the only news we heard today. Read on for six other interesting tidbits we gleaned from the quarterly earnings call.

New Model S and X powertrain cuts costs

We knew that the new front motor in the Model S and Model X improved range and performance, but Tesla CEO Elon Musk revealed that adapting the rear drive units of the Model 3 to work in the front of the S and X also reduced costs. This makes a lot of sense if you think about it.  Sharing components simplifies and streamlines parts production, and using one common drive unit in three products (or four when Model Y arrives) should yield savings. And as a bonus, the new Model S has a range of 370 miles. If you haven't read it yet,checkout our exclusive story where we drive the updated Model S from the Bay Area to L.A. on a single charge.

There's a new timeline for Tesla Semi production

When Tesla first revealed the Semi in November 2017, we learned that production was planned to start in 2019. Now, Musk says the automaker expects to begin production next year in 2020. A Tesla official on the call said the location for Semi production was "not yet set," but  followed that up by saying, "It's pretty clear that we make all the batteries and drive units in [Northern Nevada]."

Tesla is rolling out a new"insuranceproduct"

Without going into too much detail, Musk said Tesla will introduce a new "insurance product" in about a month. We don't know exactly what this is about, but as Business Insider points out, Tesla owners often face high insurance costs. This is because it can be somewhat more difficult to find replacement parts and qualified body shops. Will the new insurance offering have something to do with Tesla's plan to deploy 1 million robo-taxis by 2020? We'll have to wait and see.

"Ship has sailed" on taking Tesla private

"I would prefer we were private, but unfortunately I think the ship, that ship, has sailed," Musk said. If you recall, Musk previously tweeted that he was considering taking Tesla private, suggesting that funding was secured. This snowballed into a battle with the SEC that ultimately led to Musk agreeing to step down as Tesla chairman, though he remains CEO of the company.

Model Y could enter production in Fremont after all

Previously, Musk said that Tesla wouldn't produce Model Y in Fremont because the location was already "jammed to the gills." Now, we're learning that the small crossover may enter production there after all, or in Nevada. Tesla remains undecided, saying it's a "tough call." Expect a decision soon, though.

Musk doesn't completely hate the idea of raising capital

In the past, Musk has been vehemently opposed to the idea of raising capital. But in today's earnings call, he said the idea of raising new funds at this point has merit. "This is probably about the right timing," he said. But he didn't give any indication that this was actually happening right now, and he also stressed that outside funding shouldn't be a substitute for financial discipline.

Kelly Lin

When I tell people I write about cars, the most common reply I receive is “Really?” I guess I never strike people as a car type as I drive down the freeway in the right lane going 60 mph in my old SUV. My gripes about driving in city traffic and fast drivers don’t help my case, either. For a time, the only cars I liked were old cars. Not old as in "classic" or "vintage," but as in well-worn. My first appreciation of cars came when I drove a very old Ford pickup. It wasn't perfect: I used a booster seat to reach the gas pedal, and the turn signal once fell off in my hand as I was learning to drive. But the thing I valued most was the memories. It took several years for me to truly become a "car person." Being a long-time writer and an avid reader has helped me develop a healthy curiosity and a desire to know how things work. This has made cars one of the most fascinating points of study for me because they are such intricate machines. I am interested in how cars can reach 200 mph, how they can run on hydrogen, and how they can drive and park on their own. I also enjoy learning how cars can solve problems whether it be in the form of reducing pollution, minimizing traffic, or helping people stay connected on the road. Yes, maybe I’m not a gearhead. Perhaps I’m a car nerd. Either way, I very much enjoy writing about cars and helping people stay in tune with the automotive industry. I wouldn't want to be writing about anything else. And don’t get me wrong: I know how to drool over a hot car. I am fascinated by the Tesla Model S, awed by the Lamborghini Veneno, and am hopelessly obsessed with the Audi R8.

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