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Notable Quotes From The Tesla Conference Call (TSLA)

Tesla (NASDAQ: TSLA) reported earnings Wednesday after the bell. Below are some of the notable quotes from the conference call. All quotes are from CEO, Elon Musk.

On the company’s plans to enter China despite the trademark problem we reported on Wednesday:

“So in terms of our expenditures, we are still more on Model S than anything else, on every front, including R&D because, bear in mind, we have got right hand drive that’s coming out in the spring. Then there is the China version and actually there’s the European version that’s tying in a note there.”

On Musk’s Hyperloop plans. (See our article here.)

“I don’t know. I think, so out of the question, but I think I kind of shot myself if I ever mentioning Hyperloop, because obviously I have to focus on core Tesla business and SpaceX business and that’s more than enough, but I did commit to publishing a design and provide quite a detailed design I think on Monday and then invite critical feedback and see if the people can find ways to improve it and then you can just be out there as kind of like a open source design that maybe you can keep improving and I don’t have any plan to execute, because I must remain focused on SpaceX and Tesla. If nothing happens for a few years, with that I mean maybe it could make sense to make the halfway path with Tesla involvement, but I would say is you shouldn’t be speculative.”

On supply chain bottlenecks:

“We have production constraints, not demand constraint…90% of our suppliers are able to ramp-up and 5% have some difficulty and 4% have a lot of difficulty and 1% just can’t and so we have got to replace those or in-source those items…So that’s where we are really spending our time line, is clearing up those production bottlenecks or supply chain bottlenecks.”

On the annualized order flow:

“…in terms of weekly net orders, new orders net of cancellations, it is something, it fluctuates a little bit from week to week but it’s around 20,000 right now for North America. We are not trying to push it higher than that because it’s kind of pointless to push volume when you don’t have the production to meet it.”

On people who purchase a Tesla vehicle that don’t own a home or have access to a garage:

“It’s not a huge percentage of the market that has the issue, but it is what is. Something we need to address. So for the biggest and toughest one is I guess street parking. A lot of cities and municipalities are putting in charging infrastructure on the street. So we are working with them to get more of that established.”

Full transcript can be found here.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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