Despite a down quarter, Tesla is planning new products — including car insurance

Despite a down quarter, Tesla is planning new products — including car insurance

7:39pm, 24th April, 2019
Tesla CEO Elon Musk introduces the Tesla Semi truck and an updated version of the Tesla Roadster at a 2017 unveiling. (Tesla via YouTube) Tesla today reported wider-than-expected financial losses in the first quarter — due to what the company said were delivery challenges, a seasonal dip in demand and the unanticipated effects of pricing decisions. Despite the downturn from what had been a profitable couple of quarters, Tesla CEO Elon Musk was bullish on several fronts, including rollouts for the company’s and , plus the opening of Tesla’s Gigafactory in Shanghai, China. Musk is even planning to offer car insurance policies starting next month, with pricing determined by the data that’s received from the company’s cars. “We have direct knowledge of the risk profile of customers and the car,” he explained during today’s teleconference with financial analysts. “If they want to buy Tesla insurance, they have to agree to not drive the car in a crazy way. Or they can, but then the insurance rate is higher.” If it’s done right, in-house insurance could add another revenue stream to Tesla’s bottom line. That could help ease the pain for Tesla’s accountants as well as for investors, who have seen share prices slump due to concerns about long-term profitability. (The price slipped nearly 2 percent during today’s trading, to $258.66 at the close.) Net losses amounted to $702 million, and adjusted net losses per share were $2.90. That’s 13 percent worse than the year-ago figure and . Revenue was $4.5 billion, which was better than the year-ago figure but not as high as analysts thought it would be. In its , Tesla said there was a production jam-up that forced a large number of deliveries to be deferred into the second quarter. “This is the most difficult logistics problem I’ve ever seen, and I’ve seen some tough ones,” Musk said. In all, 63,000 electric cars were delivered during the first quarter, which fell far short of expectations. In addition to the logistical challenges, Tesla said pricing changes for its Model S and Model X cars caused a higher-than-anticipated return rate. One disincentive to sales was the gradual phase-out of federal tax credits for electric vehicles. Previously: The good news is that powertrain improvements have boosted the performance and range of those two models: The maximum range was extended to 370 miles on a full charge for the Model S, and 325 miles for the Model X SUV. For the past two years, Tesla has been focused on ramping up production of the Model 3, which finally . Tesla reported producing 63,000 Model 3 cars during the quarter and is aiming to raise that figure higher. “If our Gigafactory Shanghai is able to reach volume production early in Q4 this year, we may be able to produce as many as 500,000 vehicles globally in 2019,” the company said in its shareholders’ letter. “This is an aggressive schedule, but it is what we are targeting.” Musk said that the Shanghai construction project was “going incredibly well,” and that he was receiving “midnight Gigafactory email” on an almost nightly basis. On other financial fronts: Tesla’s cash on hand fell by $1.5 billion over the course of the quarter, to $2.2 billion. A $920 million convertible bond repayment accounted for most of that reduction, and the delivery snag was an additional factor. Another, linked to Tesla’s SolarCity subsidiary, is said to be due this month. One analyst asked Musk whether he wished that he had persevered with efforts to take Tesla private last year — efforts that ended up getting him in hot water with the Securities and Exchange Commission. “I would prefer that we were private,” Musk replied, “but unfortunately that ship has sailed.” Musk told analysts that “at this point I do think there is some merit to raising capital,” but he didn’t provide further details.
Over a quarter of US adults now own a smart speaker, typically an Amazon Echo

Over a quarter of US adults now own a smart speaker, typically an Amazon Echo

3:40pm, 8th March, 2019
U.S. smart speaker owners grew 40 percent over 2018 to now reach 66.4 million — or 26.2 percent of the U.S. adult population — according to released this week, which detailed adoption patterns and device market share. The report also reconfirmed Amazon Echo’s lead, noting the Alexa-powered smart speaker grew to a 61 percent market share by the end of last year — well above Google Home’s 24 percent share. These findings fall roughly in line with other analysts’ reports on smart speaker market share in the U.S. However, because of varying methodology, they don’t all come back with the exact same numbers. For example, in December 2018, the Echo had accounted for nearly 67 percent of all U.S. smart speaker sales in 2018. Meanwhile, , with a 70 percent share of the installed base in the U.S. Though the percentages differ, the overall trend is that Amazon Echo remains the smart speaker to beat. While on the face of things this appears to be great news for Amazon, did note that Google Home has been closing the gap with Echo in recent months. Amazon Echo’s share dropped nearly 11 percent over 2018, while Google Home made up for just over half that decline with a 5.5 percent gain, and “other” devices making up the rest. This latter category, which includes devices like Apple’s HomePod and Sonos One, grew last year to now account for 15 percent of the market. That said, the has Alexa built-in, so it may not be as bad for Amazon as the numbers alone seem to indicate. After all, Amazon is selling its Echo devices at cost or even a loss to snag more market share. The real value over time will be in controlling the ecosystem. The growth in smart speakers is part of a larger trend toward voice computing and smart voice assistants — like Siri, Bixby and Google Assistant — which are often accessed on smartphones. A related report from Juniper Research last month estimated there will be , up from the 2.5 billion in use at the end of 2018. This is due to the increased use of smartphone assistants as well as the smart speaker trend, the firm said. Voicebot’s report also saw how being able to access voice assistance on multiple platforms was helping to boost usage numbers. It found that smart speaker owners used their smartphone’s voice assistant more than those who didn’t have a smart speaker in their home. It seems consumers get used to being able to access their voice assistants across platforms — now that Siri has made the jump to speakers and Alexa to phones, for instance. The full report is available on Voicebot.ai’s website .