S1 E1: Tesla Q4 2018 Results, Byton at CES, Toyota on CNBC, and Tesla's largest asset and liability in 2019

All Things EV Podcast S1 E1 

Show Notes

Purpose of this podcast

Give you the listener a well-rounded look at what’s happening in the Electric Vehicle space.

This means that in addition to what Tesla is doing, I will also cover the electrification efforts by new entrants like Rivian, Atlis, Lucid, SF, Byton, as well as legacy automakers like GM, Ford, Kia, Audi, Porsche, and Jaguar.

The EV space is just one aspect, though, I also think it’ll be important to cover the renewable energy and energy storage that will power these vehicles, so I’ll be doing that as well.

About me

Model S owner in Denver, Colorado with 160K miles (257K km)

Denver Tesla Club with 1,000 owners and enthusiast

YouTube channel with nearly 10,000 subs

Residential real estate

Why am I starting this podcast?

A few years ago I ran a pretty successful sales podcast called RealSalesTalk. After two years I eventually discontinued it to focus on my real estate business in Denver. Somehow, though, I alway knew that I would come back to the platform.

Podcasts are a great way to consume content when not at a computer and on the go. They are perfect for drive-time commutes, walking, working out, or just in remote places with little to no internet access. Best of all, it’s a killer way to be productive and expand your knowledge in an otherwise lost time block of the day.

With that said, let’s jump in.

News

  • Q4 2018 Tesla numbers

Production in Q4 grew to 86,555 vehicles, 8% more than our prior all-time high in Q3. This included:

  • 61,394 Model 3 vehicles, in line with our guidance and 15% more than Q3.

  • 25,161 Model S and X vehicles, consistent with our long-term run rate of approximately 100,000 per year.

Q4 deliveries grew to 90,700 vehicles, which was 8% more than our prior all time-high in Q3. This included 63,150 Model 3 (13% growth over Q3), 13,500 Model S, and 14,050 Model X vehicles.

In 2018, we delivered a total of 245,240 vehicles: 145,846 Model 3 and 99,394 Model S and X. To put our growth into perspective, we delivered almost as many vehicles in 2018 as we did in all prior years combined.

My thoughts: This was a monumental quarter for Tesla and I expect for it to be equally profitable if not more to Q3 2018. I’m exciting about where Tesla is headed and have a personal goal to increase my stock investment into the company now that there is a visible path to consistent profit.

Source: http://ir.tesla.com/news-releases/news-release-details/tesla-q4-2018-vehicle-production-deliveries-also-announcing-2000 

  • Byton at CES

InsideEVs: “BYTON is well on track to secure a production license in China. If you’re going to build a standalone, fully independent car company from scratch, you also need to control your R&D, design manufacturing and assembly. With this license, we’ll be able to control our own destiny” – Daniel Kirchert- Founder

My thoughts: I personally am onboard with what Byton is doing for the simple fact that they have the talent and money. The majority of Byton’s employees come from many of the luxury automakers like BMW and Infinity.

Source: https://insideevs.com/byton-founders-exhude-confidence-at-ces

Toyota on CNBC

Bob Carter, executive vice president of sales for Toyota Motor North America:

“Our approach is a portfolio approach. We don’t think one technology is absolutely the best solution for each customer. We are working on an entire portfolio of hybrids, which we have been selling since 1997, plug-in hybrids, and full battery-electric as well as our fuel cell vehicles.” 

“I’d argue to the contrary. When you are looking at full electric, whether it’s Tesla or others on the market, they represented last year less than one percent of the industry and as you know, the industry had a fabulous year last year. Our strategy is to keep utilizing our hybrids, plug-in hybrids, and eventually bring in battery-electric vehicles as the market grows.”

This to me this is an ultra concentrative play on Toyota’s part. Essentially they are saying we are going to be all things to all people. This is a zero risk strategy. And in my opinion, this is a recipe for mediocrity and more importantly obsolescence.

Source: https://youtu.be/naN40spDu9c

Research

Video: Tesla’s most valuable asset. https://youtu.be/jHB23Z0VlUA 

My thoughts: This will continue to be a cash cow for Tesla as their customer base grows. I do not expect them to do away with the referral program. I know some have commented that most people who used an owner’s referral code had already decided to buy a Tesla so it has little impact on the purchase process. I’d say to those people you are missing the point. The purpose of the referral program is to leverage owners to to talk about Tesla and their car. By doing this, they are dominating mind share and influencer marketing for a fraction of the cost of traditional advertising.

Video: Tesla’s $1.8B liability in 2019. https://youtu.be/uR7N4-yMfBA

My thoughts: If you follow me on Twitter you know I’ve been vocal about this issue. I think Tesla needs to quickly fix this. One thing I didn’t mention in the video is how many owners I’ve talk to in the last 3-4 who are having the same issues. Because of my relationships at Tesla I’ve offered to and helped around 50-60 owners. This is becoming a common occurrence now, which is why I decided to use my platform to make an Open letter to Elon and Tesla.

Wrap up

Thank you so much for listening

If you’d like to get your question answered on All Things EV Podcast tweet me at @SeanMMitchell and use the hashtag #AllThingsEV.

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