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Tesla (TSLA) earnings Q3 2020

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Tesla CEO Elon Musk attends the Tesla Shanghai Gigafactory groundbreaking ceremony in Shanghai, China, January 7, 2019.

Aly Song | Reuters

Elon Musk’s electric car and renewable energy company, Tesla, reports third-quarter results after the bell on Wednesday.

Here’s what Wall Street analysts are expecting, per an average of analyst estimates compiled by Refinitiv:

  • Earnings per share (adjusted): 57 cents
  • Revenue: $8.36 billion

The company already reported that it delivered 139,300 vehicles during the quarter, a new record for Tesla.

At Tesla’s 2020 annual shareholder meeting and battery day presentation in September, CEO and co-founder Elon Musk said that vehicle deliveries in 2020 would be up 30% to 40% from last year, implying a range from 477,750 to 514,500 deliveries total. (Earlier, the company said it would comfortably exceed deliveries of 500,000 this year, but it reined in expectations slightly as the Covid-19 pandemic began to impact Tesla operations and auto sales.)

Tesla completed a five-for-one stock split during the quarter. When a company splits its stock, its total value doesn’t change, but it helps get smaller investors to buy shares.

Ahead of the earnings call on Wednesday, institutional and retail investors submitted questions to a site called Say.com that Tesla uses to pick questions for executives to answer during the Q&A portion of its calls.

Among other things, institutional investors sought information about just how much Tesla plans to spend on new factories over the next decade. They were also curious about Tesla’s pricing and margin targets, after the company recently cut prices on its vehicles including in the U.S. and China. Tesla is currently building new factories in Austin, Texas, and Brandenburg, Germany (outside of Berlin).

In September, Musk and Senior Vice President of Energy Engineering, Drew Baglino also unveiled a new battery cell that the company designed itself, and plans to produce on their own, starting on pilot lines in Fremont, California, then at their other factories.

Institutional and retail investors also wanted to know when Tesla will roll out vehicles, and energy storage products, that include the new battery cells. They also had questions about when Tesla’s vehicles will be capable of functioning as driverless robotaxis, and when Tesla will offer its own ride-hailing service.

Today, Tesla offers its customers what it markets as a Full Self-Driving or “FSD” option, which it sells for $8,000. The FSD package is Tesla’s most advanced driver assistance system, but it is not a fully autonomous one. Tesla recognizes a portion of revenue from FSD sales with each new feature update that moves it closer to what the company defines as driverless capability.

Musk has previously said a Tesla vehicle with FSD should be able to drive itself coast to coast, or from a Tesla facility to a customer’s home, in lieu of a traditional delivery arrangement. It’s been about four years since the CEO promised a driverless vehicle was on the way.

During the third quarter, however, he said that Tesla was rewriting its semi-autonomous system:

In October, he promised a beta software update for select drivers who purchased the company’s Full Self-Driving option. Tuesday after markets closed, Musk wrote the rollout would begin slowly rolling out overnight.

Retail investors, many of whom are enthusiastic Tesla owners themselves, want executives to say whether Tesla will let customers transfer their FSD software to their next vehicle, with or without a transfer fee, much the way that gaming or mobile companies let customers transfer games and apps when they upgrade to newer hardware.

This is breaking news. Please check back for updates.


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India can beat China in low-cost manufacturing: Maruti Suzuki chairman

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NEW DELHI: India has the potential to surpass even China in low-cost manufacturing if the government and industry work in a cohesive manner, Maruti Suzuki India (MSI) Chairman RC Bhargava said on Thursday.
Bhargava also said the government should focus on increasing the competitiveness of the Indian industry.
“India has the capability to become a lower cost country than China if the industry and the government work together,” Bhargava said.
He was sharing his views on making Indian manufacturing globally competitive at an online event organized by the All India Management Association (AIMA).
Bhargava said the only objective of government policies should be to increase the competitiveness of Indian industry so that it can make things at the lowest cost along with the best quality in the world.
“The more the industry can sell, the more jobs will be created in the economy,” he noted.
Bhargava pointed out that creating jobs across sectors was important for the overall growth of the economy.
He, however, criticized states which have reserved jobs in manufacturing for locals.
“It is an anti-competitive step,” Bhargava said.
He also said MSMEs have to be as globally competitive as the large companies because the entire supply chain determines the overall competitiveness.
Bhargava also noted that the industry cannot be competitive unless the promoters and managers treated workers as partners.
He pointed out that MSI owed its success to explaining to its workers that they will prosper if the company grew and backing that with policies and actions that delivered income and career growth to employees.


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Transport Ministry begins exercise to formalise registration of vintage motor vehicles in India

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New Delhi: The transport ministry has issued a notification to formalise the registration process for vintage vehicles in the country, in a bid to preserve the heritage of old motor vehicles in India.

The ministry has proposed a fee of Rs 20,000 for a new registration and Rs 5,000 as fee for subsequent re-registration.

All applications for registering such vehicles will be applied on the “PARIVAHAN” portal of the ministry of road transport and highways. This registration shall be valid for 10 years.

The Ministry has published GSR 734 (E) on Wednesday seeking comments and suggestions in regards to amending Central Motor Vehicle Rules 1989, relating to Vintage Motor Vehicles.

“There are no existing rules for regulating the registration process of vehicles of heritage value. Through this notification the Ministry intends to formalize the registration process of the Vintage Motor Vehicles,” said a government official.

The government has defined Vintage vehicles as those two-wheelers and four-wheelers (non-commercial/personal use) which are more than 50 years old from the date of their first registration (including imported vehicle).

The definition, however, restricts any substantial overhaul of the vehicle which includes modification in chassis or body shell, and or engine.

All States registering authority will appoint a nodal officer who will process all applications for registration of vintage motor vehicles, as per the proposed rules.

Further, States will have to form a committee which will inspect a vehicle and declare whether the vehicle is fit to be registered as vintage.

The ministry has proposed to restrict the use of vintage vehicles on Indian roads.

“A Vintage Motor vehicle is allowed to run on Indian roads only for display, technical research or taking part in a vintage car rally, refueling and maintenance, exhibitions, vintage rallies, to and fro to such exhibition or car rally,” the official said, sharing details of the proposal.


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India can beat China in low-cost manufacturing if industry, govt work together: RC Bhargava

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NEW DELHI: India has the potential to surpass even China in low-cost manufacturing if the government and industry work in a cohesive manner, Maruti Suzuki India (MSI) Chairman RC Bhargava said on Thursday. Bhargava also said the government should focus on increasing the competitiveness of the Indian industry.

“India has the capability to become a lower cost country than China if the industry and the government work together,” Bhargava said.

He was sharing his views on making Indian manufacturing globally competitive at an online event organised by the All India Management Association (AIMA).

Bhargava said the only objective of government policies should be to increase the competitiveness of Indian industry so that it can make things at the lowest cost along with the best quality in the world.

“The more the industry can sell, the more jobs will be created in the economy,” he noted.

Bhargava pointed out that creating jobs across sectors was important for the overall growth of the economy.

He, however, criticised states which have reserved jobs in manufacturing for locals.

“It is an anti-competitive step,” Bhargava said.

He also said MSMEs have to be as globally competitive as the large companies because the entire supply chain determines the overall competitiveness.

Bhargava also noted that the industry cannot be competitive unless the promoters and managers treated workers as partners.

He pointed out that MSI owed its success to explaining to its workers that they will prosper if the company grew and backing that with policies and actions that delivered income and career growth to employees.


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