An unexpectedly profitable quarter boosts the stock. Going forward, the upcoming Model Y should sell more than the S, X, and Model 3 combined! Wayne Gerdes – CleanMPG – October 24, 2019 Tesla Model Y The Model Y will be available with seating for 7 option, a Panoramic roof, and 66 cu. ft. of cargo volume in 5 seat configuration including the front trunk. On the performance front, 0 to 60 mph in 3.5 sec, a Cd of 0.23, and an EPA range of 300-miles. RWD Long Range will be available for $47k Tesla Q3 Earnings After the bell, Tesla reported a surprising Q3 earnings per share profit of $1.86 vs the Streets consensus of a $0.42/share loss! Revenues of $6.3 billion were down slightly from the $6.33 billion expected. By all appearances, Tesla has finally turned the corner on sustained profitability with the Fremont Factory punching out Model 3s as fast as demand requires and they continue to make money while expanding vehicle services. The eye opener imho is Tesla’s automotive gross margins rose to 22.8% in the Q3, up from Q2s 18.9%. OEMs achieving even 8 percent is noteworthy so all of those expensive Model S’, X, and 3s are making the company $s. Where Tesla is spending those dollars is on the new China Factory where Li-Ion Cells and the vehicles themselves will be produced under the same roof, limited production of the Tesla Semi in 2020, a European factory scheduled for 2021 opening, and its continuous roll out of upgraded and more chargers within the brands Super Charging network. Super Charger V3 upgrade to 250 kW can charge a Model 3 Long Range at over 1,000 miles per hour between 10 and 60 percent SoC! All the while Tesla continues to focus on sustainable transportation with sustainable home and business energy production, sustainable energy consumption, and Electric Cars meeting our transportation needs. The earnings announcement caused the stock to jump by 20 percent. The short sellers covering after this unexpectedly good announcement was said to be the cause. Regarding the Model 3, the EPA range of the Model 3 Standard Range Plus has been increased from 240 to 250 miles thanks to efficient energy use rather than a costly increase in battery size. Comparing this to the rest of the industry, Tesla’s long-range models of the S, X and 3 continue to have 20-40% range advantage over every other EV available including the $37k Kona Electric at 258 miles. Tesla Insurance Another interesting Tesla owner upgrade is Tesla insurance. Currently, insurance companies’ margins are being increased simply by increasing rates to the detriment of the average consumer. In August, Tesla Insurance was launched for California customers allowing many Tesla owners to reduce their insurance costs by 20 to 30%. This offering is an important step to make Tesla’s more affordable than their rivals. Tesla is working to expand insurance into additional markets. Tesla Q3 2019 Earnings Details Tesla Model Y The Model Y is an all-electric, mid-size CUV will start at $39,000 for the Standard Range version, and $47,000 for the Long Range. A Dual-Motor All-Wheel Drive, and Performance variants are also being readied. Model Y can carry seven adults and their gear while offering segment leading range, superior performance, and the most advanced technology. The high-efficiency powertrain and ultra-responsive motors will drive the Y from 0 to 60 in as little as 3.5 seconds with a top speed of up to 150 mph. Model Y Standard Battery will have 230 miles of range, while Model Y Long Range will be able to travel up to 300 miles on a single charge. Inside the Model Y. Inside, Model Y's panoramic glass roof and high seating offers an expansive view. The front trunk and room behind the split-folding second-row seats provide a total of 66 cubic feet of storage space. Like the Model 3, Model Y requires no keys, but instead connects to your smartphone for seamless entry and exit, with a single 15” touchscreen interface inside for all of the car's controls. Model Y also connects with the Tesla Mobile app for unique, easy-to-access features like remote unlock, the controversial Summon, remote pre-conditioning, location tracking, Speed Limit Mode, and much more. Model Y is designed to be the safest mid-size SUV. The low center of gravity, rigid body structure and large crumple zones provide unparalleled protection. Its aerodynamic design and leading battery technology also make it highly-efficient in terms of energy usage, meaning you can achieve better range with less energy than other EVs on the market. Deliveries are expected to begin in Fall 2020 for Model Y Performance, $47,000 Long Range Rear-Wheel Drive, and Dual-Motor All-Wheel Drive variants, and early 2021 for the $39,000 Model Y Standard Range. To put the Tesla 2019 U.S. Sales volumes into perspective, the 3, X, and S combined achieved sales of just over 135,700 YTD here in the U.S. Every other manufacturer’s BEV sales combined including the GM Bolt, Nissan Leaf, VW eGolf, Audi e-tron, Jaguar i-Pace, Hyundai Kona and Ioniq, Honda Clarity, BMW i3, Kia Niro and Soul combined for just over 34,500 vehicles through the same period. Meaning one manufacture is making money. All the rest, probably not. Tesla has made more than 550,000 vehicles to date and just 12-months from now, may exceed 1,000,000 vehicles. 12 years from 1 to a million? Those are numbers not to be screwed around with.