Runtime: 6:29
0:30 Tesla Earnings Both Good and Bad
1:28 Elon Musk Berates Analyst
2:03 NHTSA Questions Autopilot Safety
3:09 Miami to Vote on Formula 1 Race
3:36 Students Building AV Campus Shuttle
5:00 OEMs to Meet Trump on Economy Standards
5:31 Fresh Models Boost Jeep Sales
Visit our sponsors to thank them for their support of Autoline Daily: Bridgestone , Dow Automotive Systems , Lear Corporation and BorgWarner.
On today’s show… Tesla reported its earnings and the numbers are either great or terrible, depending on which side you’re on… sales of Jeeps are absolutely on fire… and Miami could get a Formula One race. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
BARRELS OF RED INK
Tesla reported its first quarter earnings, and depending on which side you’re on, the numbers look great or spell doom for the company. Tesla sold 29,997 cars in the first three months of the year, only 30 more cars than it sold a year ago. It’s revenue hit $3.4 billion, up nearly 26% from last year. And that’s a key metric that the Tesla bulls watch. They want to see that top line growing strong. But here’s a number that will alarm them. Tesla’s gross profit dropped 31%. Unless Tesla gets that turned around in the next quarter it could be a tipping point for the stock. Even worse, its operating losses more than doubled, losing over half a billion dollars. Its net loss almost doubled, with $784 million in red ink on the bottom line. It also burned through $700 million in cash.
Tesla Q1, 2018 | ||
---|---|---|
Sales | 29,997 | +0.1% |
Revenue | $3.4 Billion | +26% |
Operating Loss | -$597 Milliion | -$339 Million |
Net Loss | -$784 Million | -$387 Million |
SHUT UP AND DON’T ASK ME THAT
But here’s what everyone is really talking about. On the earnings call with analysts, Elon Musk began berating one of the analysts for asking him questions that he said were boring. Instead he turned to a guy named Galileo Russell who hosts podcasts on his Youtube channel called HyperChange. He’s an unabashed fan of Elon and Tesla and after that no one asked Elon any probing questions about the company’s finances. It has got to be the most unusual earnings call in the history of the auto industry.
NHTSA QUESTIONS AUTOPILOT SAFETY
And now NHTSA is questioning Tesla’s safety claims with Autopilot. Tesla points to a 2017 report released by NHTSA that concluded, crash rates fell by 40 percent after Tesla installed Autopilot’s Autosteer function in its cars. NHTSA said it reached that number by using Tesla airbag deployment data. But now it says its crash rate comparison “did not evaluate whether Autosteer was engaged” and “did not assess the effectiveness of this technology.” So it sounds like Tesla can no longer make its safety claim.
Miami could be in the running to get a Formula One race and that’s coming up next..
MIAMI COULD GET F1
The U.S. could be getting another Formula 1 race. Miami will hold a vote next week on whether or not to proceed with plans to host an F1 race next year. If approved, the race would be held on the city’s streets, likely sometime in October. Miami has previously held an all-electric Formula E race on it’s streets, so I’m guessing it must have been an overall good experience and now the city wants the Top Dogs.
STUDENTS BUILD AV CAMPUS SHUTTLE
Students at the University of Michigan-Dearborn are creating an autonomous shuttle for the campus completely in-house. The electrically powered vehicle will transport students and faculty on a pre-determined route on the campus. The project called MDAS.ai, will help researchers better understand autonomous driving and shared mobility in an urban setting. As the project moves along, vehicle-to-infrastructure technology will be added to the shuttle as well. The students are also receiving support from Osram, Phantom Intelligence, Jungo Connectivity, and Vergence Automation, which will supply them with the technology needed to create the self-driving shuttle.
Don’t forget to join us for Autoline After Hours later this afternoon. Join John and Gary for some of the best insider information in the business. We’ll go live at 3 pm eastern time at Autoline.tv or you can find us on our YouTube channel.
Coming up next, thanks to a refreshed lineup, Jeep’s sales are exploding in the U.S..
OEMs TO MEET WITH TRUMP
Yesterday, we reported that California, along with 16 other states, in a preemptive move, sued the EPA over potential rollbacks of fuel economy standards. And now Bloomberg reports that automakers will meet with President Trump to try and dissuade him from going to war with those states. While automakers would like some relief from the very aggressive standards, they don’t want to deal with different standards in different parts of the country, which would turn into a logistical nightmare for them.
JEEP SALES ON FIRE
Jeep’s sales in the U.S. are exploding. According to WardsAuto, last month, the brand sold more than 82,000 vehicles, which is up 20% from a year ago. And through the first four months of the year, sales are up 20% as well. And not surprisingly the newest models in its lineup, the Cherokee, Compass and Wrangler, are leading the sales charge. Grand Cherokee and Renegade sales are down for the first four months of the year. Jeep is also going to come out with a pickup truck and the full-size Grand Wagoneer in the next year so we expect to see sales keep on climbing.
2018 U.S. Jeep Sales | ||
---|---|---|
April | 82,641 | +19.9% |
YTD | 310,746 | +20.6% |
Jeep Model YTD Change | |
---|---|
Cherokee | +23.1% |
Compass | +356% |
Wrangler | +41.8% |
G. Cherokee | -7.1% |
Renegade | -4.6% |
But that’s it for today, thanks for watching and please join us again tomorrow.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
John McElroy is an influential thought leader in the automotive industry. He is a journalist, lecturer, commentator and entrepreneur. He created “Autoline Daily,” the first industry webcast of industry news and analysis.