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Tesla’s used car business is rapidly expanding, on pace to triple used sales

Source: Motor Trend

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Used cars have a healthy share of most automakers’ cash flow, and Tesla is looking to get into that game.

As of the Q2 filing, Tesla has $1,470,359,000 in “finished goods” inventory on their books. They don’t break this section down, but it includes “vehicles in transit to fulfill customer orders, new vehicles available for immediate sale at our retail and service center locations, pre-owned Tesla vehicles and energy storage products.”

Used inventory

Source: Cars.com

Tesla had an increase of $154.1M in used car sales this year thus far.

In 2016 as a whole, the company saw an increase of $117.4M. At the rate it is going at now, the company is easily on pace to triple used inventory sales.

The company attributes the used sales bump to an increase in pre-owned vehicle sales as an organic result of increased automotive sales as well as from expansion of our trade-in program.

Tesla is also making moves in the used car space by listing its used inventory on Cars.com. While owners have been listing their Teslas on the website for some time, Tesla itself is now listing its inventory.

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Used inventory

Source: Cars.com

“In future periods, we do not anticipate meaningful revenue from sales of powertrain or other vehicle systems and components to third parties. However, we anticipate that revenue from sales of pre-owned vehicles will continue to increase as the volume of pre-owned vehicle sales increases and that revenue from services by Grohmann will decrease as we primarily consume internally its services,” the company said in its Q2 filing.

The Elon Musk-run company has been involved in some legal back-and-forth with a few states who ban Tesla’s direct-to-consumer model. The most notable of these legal battles is the one taking place in Michigan.

Michigan has an Anti-Tesla Law, which states that new auto sales can only be conducted by franchised auto dealerships. Tesla claims this law discriminates against out-of-state interests and is an unconstitutional infringement on their preferred business model.

Tesla is currently finding ways around the law — consumers can order their Teslas online but they have to pick them up in neighboring states like Ohio or Illinois.

The sales on Cars.com are also a way around the Anti-Tesla law since it only impacts “new auto sales.”

The used car sales is just another way that Tesla is trying to bring new Tesla owners into the fold. The company previously announced an expansion of its service fleet in an effort to make the vehicle more user-friendly and convenient. The EV titan will also add 100 new Tesla Service Centers and 1,400 new service technicians, the addition of 100 facilities will bring the total number up to just over 250 service centers worldwide.

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Tesla’s continued foray into the used sales space is a clear indicator that the company is looking to utilize that part of the business to bolster its bottom line and bring new owners into the world of Tesla.

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Waymo responds to shocking video that would have gotten Tesla FSD crucified

As per Waymo, there is actually a pretty good reason why one of its self-driving cars ended up driving around a golf course.

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Credit: @JeffTutorials/X

Waymo has provided some clarification on a video that has been spreading recently on social media. The video, as hilarious as it was, would likely have resulted in Tesla getting crucified if a Robotaxi running FSD had been involved instead.

As per Waymo, there is actually a pretty good reason why one of its self-driving cars ended up driving around a golf course.

The viral video and Waymo’s response

This weekend, a video emerged on social media showing a Waymo self-driving car driving around a golf course. Unlike other Waymos, this particular vehicle was operating on the grass itself, just a few meters away from people. Spectators could be heard laughing in the video as the Waymo slowly drove over the golf course.

Amidst speculations online, Waymo has stated that the vehicle in the viral video was actually operated by a human driver. In a post on social media platform X, Waymo’s official account clarified that the vehicle was not self-driving at the time the video was taken. “Hey there, this was a human-driven car, getting ready for an event at the Penmar Golf Course,” Waymo wrote in its X post.

Had a Tesla been involved…

The video caught a lot of attention among Tesla enthusiasts, with many stating that such a video involving a Robotaxi could have easily crucified the electric vehicle maker in the media. It is no secret that Tesla receives overwhelmingly negative media coverage, so even a small scratch on a Robotaxi or other minor incidents on the road tend to result in dramatic headlines. 

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Had a Tesla running FSD been spotted operating on a golf course just meters away from people, calls for banning Robotaxis and headlines about the self-driving cars nearly killing golf players would have been abundant. The news would probably have been international as well, with dramatic media hosts allocating notable portions of their shows to the alleged dangers of Teslas and FSD, or why Elon Musk was directly responsible for the incident.

It’s an insane scenario, but anyone who’s followed the Tesla story for years would know it is feasible. 

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Tesla unveils charging innovation that will make the Semi instantly successful

The V4 cabinet Supercharger is an innovative solution that could very well make the Tesla Semi instantly successful.

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Credit: Max de Zegher/X

Tesla North American Charging Director Max de Zegher recently shared some insights about the company’s V4 cabinet Superchargers, which are currently being deployed today. 

As per the charging executive, the V4 cabinet does not only usher in a new era of fast charging for the company’s consumer vehicles. It is also an innovative solution that could very well make the Tesla Semi instantly successful when it starts being produced in meaningful volumes next year.

V4 cabinet Superchargers

In a recent post on X, the official Tesla Charging account announced that the first V4 cabinet Supercharger is now live. The V4 cabinet Supercharger paves the way for 0.5 MW and 3X power density, with two stalls per cabinet. Tesla Charging also noted that the V4 cabinet Supercharger offers higher throughput, higher efficiency, lower cost, and faster deployments. 

In a follow-up post, de Zegher highlighted that the V4 cabinet is nothing short of a masterpiece. He also revealed that the technology used in the V4 cabinet Superchargers will enable 1.2 MW charging for the Semi. 

“It might be odd to get so excited about a white box, but the V4 cabinet is a charging masterpiece: AC in, 16 trays of power electronics, DC out. This is the tech that will make 1.2MW charging for Semi, and 0.5 MW charging for cars, ubiquitous around the world,” de Zegher wrote in his post on X.

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Tesla Semi ramp

The Tesla Semi has the potential to be the company’s most disruptive vehicle in its lineup. However, its success will likely be limited by how far the Class 8 all-electric long hauler could travel. With this in mind, it is pertinent for the Semi to have charging stops set up across the globe. Only then could it truly become a legitimate alternative to diesel long-haulers, including those engaged in cross-country routes.

If Tesla could successfully ramp the deployment of its V4 cabinet Superchargers, the company could all but ensure that the Semi is usable for ultra-long distance routes right out of the gate. That could effectively change the transportation game. The Tesla Charging executive seemed to hint as much in his X post, with de Zegher stating that the V4 cabinet Supercharger could be configured for 1.2 MW for the Semi.

When asked if every V4 cabinet Supercharger will have 1.2 MW with 8 stall support, the Tesla Charging executive noted that “1.2 MW config for Semi. For cars it can be configured as either 1.2 MW or 1 MW efficiently shared across 8 V4 post.”

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Lucid CEO shades Tesla Model S: “Nothing has changed in 12 years now”

As per the interim CEO, Lucid is actually seeing quite a bit of business from former Tesla owners.

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Credit: Tesla

Lucid Motors’ interim CEO Marc Winterhoff recently shared some of his thoughts on rival EV maker Tesla, which is arguably the world’s undisputed leader in electric cars. As per the interim CEO, Lucid is actually seeing quite a bit of business from former Tesla owners. 

Winterhoff noted that part of this is due to the Tesla Model S, which has gotten very long in the tooth.

Lucid CEO’s remarks

During his interview with the Financial Times, the Lucid interim CEO admitted that the company is climbing an uphill battle. He also discussed Uber’s increasing stake in Lucid, as well as the rid-hailing giant’s order for 20,000 units of the Lucid Gravity, a competitor to the Tesla Model X. The executive highlighted that Lucid’s next stage will hinge on the release of its affordable Model Y fighter as well, which should cost about $50,000. 

Most interestingly, Winterhoff stated that Lucid is actually seeing a boost in sales from Tesla owners who have been turned off by the company’s aging lineup and Elon Musk’s political activities. “We have seen an uptick, that’s definitely the case, in Europe and also here in the US,” Winterhoff stated. 

The Lucid interim CEO specifically pointed to the Model S as an example of Tesla’s aging lineup. As per the executive, the Model S age is one of the reasons why customers are looking for other options, like the Lucid Air. “The Model S, nothing has changed in 12 years now. . . (customers) are actively looking for other options,” he said. 

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Tesla Model S and Model X

In a way, the Tesla Model S and Model X are indeed long in the tooth, though Winterhoff’s comment about the all-electric sedan not changing for 12 years is inaccurate. The Model S received its Plaid upgrade in 2021, and it was refreshed earlier this year. While the car itself still has a similar body as its first iteration, practically everything under the hood and inside the cabin of the Model S has changed over the years.

That being said, sales of the Model S and Model X have fallen significantly since their peak. Thus, it would be a good idea for Tesla to put some effort and love into making its flagship sedan and SUV more attractive to consumers. For now, Tesla is putting in some effort into the two vehicles, as shown in the “Luxe” package it recently released for the Model S and Model X.

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