To say that Tesla’s first quarter of 2019 was dismal would be a kind way of putting it. Their previous profit streak ended thanks to a recorded loss of $702 million that occurred in the first few months of this year.

The electric vehicle (EV) company also admitted that their revenue went down by 37 percent in comparison to the previous quarter

This is despite Tesla posting back-to-back profits in the last two quarters. But between the reduction of a U.S. federal tax credit and car manufacturers like Audi and Mercedes announcing their plans in the EV space, Tesla’s disappointing performance in the beginning of 2019 is more understandable.

But with a new quarter comes a new beginning for any company, including Tesla. It’s clear that they’ll need to work extremely hard in order to make up all the money they lost, and then some.

CEO Elon Musk has made it clear that he’s optimistic due to a high demand by customers for their EVs. That being said, there’s plenty of steps Musk is taking to make the second quarter stronger and more profitable.

Back in January of 2019, Tesla increased the prices of the Model S and the Model X. The former’s price would go up by $18 000, whereas the latter would increase by just $15 000. For the base Model S- which is often referred to as the Standard Range- it can go up to about 285 miles at the cost of $79 200. That alone is a $7000 decrease from what it originally cost at the beginning of the year. The Extended Range option, now known simply as Long Range, costs $89 200. The price has been slashed by $5000; while at the same time, boasts a range of 335 to 370 miles. Meanwhile, the Performance version now costs $3750 less than it did back in January. In addition, its range is said to be between 315 to 345 miles. Finally, the Ludicrous model- which has a $20 000 price tag- can still go from zero to 60 in just 2.4 seconds.

When the focus shifts to the Model X, many similar changes have taken place now. The latest Standard Range available for consumer purchase has an estimated range of 250 miles, and costs $84 200. The newly named Long Range model comes in at $94 200 to save the consumer $3000, and can now reach 324 miles. The Performance trim’s range is somewhere between 289 to 305 miles, and its price has been slashed by $13 000. The result is a starting price of $105 200 without the Ludicrous option in place. Two other changes worth noting in regards to the Model X is the decrease in options for both interior and exterior colours, as well as the loss of free SuperCharging.

Tesla has also made more changes that don’t affect just those specific vehicles. The same 100 kilowatt hour (kWh) battery will continued to be used in all of Tesla’s vehicles. However, the front axel’s induction motor has been replaced with a permanent-magnet switched-reluctance motor. This is said to be a more efficient design choice, but it’s also more expensive. There will also be adaptive damping added to the standard air suspension, and a lowering of ride height at high speeds. The wheel bearings have been redesigned as well, and Tesla selected new tires “for certain variants”. Finally, the company’s EVs will run on the incoming V3 Supercharger network. This is particularly noteworthy because it accepts a 200 kilowatt input, and is able to charge in half the time. This will surely make charging your vehicle faster and more efficient.

 

All in all, Tesla has made many changes in a strong attempt to make their second quarter a success. Whether any or all of these vehicle improvements end up boosting profits still remains to be seen. Tesla is one company that consumers, critics, and investors alike are going to keep tabs on. But perhaps the best way to tell of the success or failure of these changes will come by the end of the second quarter. It’ll be clear then whether Tesla made the right or wrong choices.

Sources: CarandDriver; CNN

 

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