Model 3
Amid trade rift, China to allow full foreign auto ownership
Facing the risk of a trade fight with the United States, China announced plans Tuesday to allow full foreign ownership of automakers in five years. The change would scrap rules that require global automakers to work through state-owned partners — an arrangement that forces those foreign companies to share technology with potential competitors in China.
This is great news for Tesla and exactly what they've been waiting for. It opens the door for Tesla to finalize their new China factory plans.
TSLA
Highlights from Elon's letter to Tesla employees
From Elon's letter this week to Tesla employees:
First, congratulations are in order! We have now completed our third full week of producing over 2000 Model 3 vehicles. The first week was 2020, the second was 2070 and we just completed 2250 last week, along with 2000 Model S/X vehicles. Tesla has been sustaining a 2000+/week production rate for past 3 weeks.
Starting today at Giga and tomorrow at Fremont, we will be stopping for three to five days to do a comprehensive set of upgrades. This should set us up for Model 3 production of 3000 to 4000 per week next month. Another set of upgrades starting in late May should be enough to unlock production capacity of 6000 Model 3 vehicles per week by the end of June. Please note that all areas of Tesla and our suppliers will be required to demonstrate a Model 3 capacity of ~6000/week by building 850 sets of car parts in 24 hours no later than June 30th.
As part of the drive towards 6k, all Model 3 production at Fremont will move to 24/7operations. This means that we will be adding another shift to general assembly, body and paint. Please refer anyone you know who you think meets the Tesla bar for talent, drive and trust. Between Fremont and Giga, Tesla will be adding about 400 people per week for several weeks.
Our car needs to be designed and built with such accuracy and precision that, if an owner measures dimensions, panel gaps and flushness, and their measurements don’t match the Model 3 specs, it just means that their measuring tape is wrong.
All capital or other expenditures above a million dollars, or where a set of related expenses may accumulate to a million dollars over the next 12 months, should be considered on hold until explicitly approved by me. If you are the manager responsible, please make sure you have a detailed, first principles understanding of the supplier quote, including every line item of parts & labor, before we meet.
Tesla Announces Date for First Quarter 2018 Financial Results and Webcast
All eyes will be on Tesla on May 2nd as they announce their Q1 earnings and also likely share an update on Model 3 production:
Tesla will post its financial results for the first quarter of 2018 after market close on Wednesday, May 2nd, 2018. At that time, Tesla will issue a brief advisory containing a link to the Q1 2018 Update Letter, which will be available on Tesla's Investor Relations website. Tesla will hold a live question and answer webcast that day at 2:30pm Pacific Time (5:30pm Eastern Time) to discuss the Company's financial and business results and outlook.
Elon Musk
LA committee endorses fast-tracking Elon Musk’s tunneling plans
Boring Company is gaining steam:
A City Council committee is recommending that Los Angeles expedite Elon Musk’s plans to drill tunnels under Sepulveda Boulevard. The public works and gang reduction committee on Wednesday approved a motion from Los Angeles City Councilmember Paul Koretz, who represents the Westside, to exempt Musk’s plans from environmental analysis. The motion now heads to the full City Council for approval. Musk’s Hawthorne-based the Boring Company wants to drill a 2.7-mile “proof of concept” tunnel beneath Sepulveda Boulevard on the Westside, roughly from Pico Boulevard to Washington Boulevard. The tunnel would be used as a testing ground for Musk’s “Loop” system, a series of underground tubes for cars, pedestrians, and bicyclists. Musk claims that pods would speed through the tunnels at speeds of up to 150 mph, easing traffic in Los Angeles.
Elon Musk's Boring Co raises $112.5 million in funding, most from Musk
The Boring Company started as a very small side venture for Elon, and now it has the funds to grow into a much larger company:
Elon Musk’s Boring Co said on Monday it raised $112.5 million in equity, with 90 percent coming from Musk himself, as the company seeks to build underground tunnels for its hyperloop transportation project. In a regulatory filing, the company listed 31 unnamed investors as participants in the funding round. Besides Musk, the rest of the investors were early Boring employees, according to the company.