Model s earnings on the network, Tesla's service and used car revenue is growing, but can't make up for a plunge in US vehicle sales
For example, in response to customer ideas, our October software release introduced an optional creep feature for those who prefer the feel of slight movement once the brake is released.
We also released driver configuration settings which store almost 20 different settings for multiple drivers, added functionality to the entertainment system and introduced a beta version of a mobile phone application.
With upgradability like this, Model S is truly a great car that improves over time. While our software teams are dreaming up even more functionality, other Tesla teams are working to enhance Model S and introduce it to the global market.
Our Canadian and European homologation efforts are progressing according to plan, with EU regulatory approval expected early next year. We are preparing for deliveries of the 60 kWh car later this year and expect EPA certification shortly. Deliveries of the 40 kWh battery version should begin in Q1 next year.
Our internally developed and manufactured Supercharger is substantially more powerful model s earnings on the network any charging technology to date, providing almost kilowatts of direct DC power to Model S.
This enables Model S owners to regain up to miles of range in 30 minutes with the 85 kWh car, about the time needed for travelers to refresh or grab a meal.
This marks an inflection point in electric vehicle convenience for long distance traveling.
Our initial Supercharger network already covers all common long-distance routes in California, enabling convenient and free driving throughout the state, as well as to Las Vegas or Lake Tahoe.
East coast travel all the way from Boston to Washington, DC, will be enabled next month. Recently, one of our Los Angeles based customers was so excited to take delivery of his Model S that he hopped on a plane to our factory in the San Francisco Bay area, took delivery of his car and used the Supercharger network to cover almost miles needed to get back home, all in the same day!
Supercharger in Hawthorne, CA Over time, all Superchargers will be equipped with a solar panel canopy, enabling Tesla to provide electricity for long distance travel at negligible marginal cost. This enables us to offer free, unlimited access to the network.
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For the first time, recharging our cars can be done at zero cost to the driver and the environment! This can save a Model S owner thousands of dollars over their ownership period. We are planning to methodically expand the Supercharger network.
By the end of next year, we plan to install Superchargers in high traffic corridors across the continental United States, enabling fast, free, purely electric travel from Vancouver to San Diego, Miami to Montreal and Los Angeles to New York.
Building for the Future We continue to open showrooms and service centers to put infrastructure in place to support a broader base of Model S customers. There are now 29 showrooms around the world.
This year, we have welcomed over 1. In addition, we continue to aggressively expand our network of service centers, and are on plan to nearly double our service locations around the world.
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Offering outstanding service is a top priority at Tesla. Increasing international marketing efforts will pave the way for an acceleration of store and service center openings.
As occurred in the United States, Tesla will start deliveries in Europe during the first half of next year with the Signature Series, all of which have been reserved for months.
With growing public exposure of Model S, we continue to set records for new reservations. As we began converting our early reservations into firm, non-refundable orders, cancellations increased as well. The net effect still demonstrated a continued growth in our net reservation count to over 13, up from 11, at the end of Q2. We expect Q4 to set a new high water mark in net reservations.
We delivered Model S and 68 Roadsters in the quarter. Limited development services revenue was recognized in the quarter; however, progress on the full electric powertrain for the Mercedes Benz EV continues on schedule. A modest increase in expenses for the expansion of our store network and service infrastructure was partially offset by a decline in general and administrative expenses.
Most of the remaining options trading volumes payments are expected to be made in Q4 based on our supplier terms.
This includes short term restricted cash, primarily to prefund the first DoE loan payment due in December In October, we pre-funded our second loan payment, model s earnings on the network to principal and interest due in March of next year.
We continue to maintain a strong relationship with the DoE. Towards the end of the quarter, we expect to achieve positive free cash flow cash flow from operations, inclusive of capital expenditures in spite of short term cost inefficiencies.
Automotive sales gross margin is expected to improve significantly in Q4 due to higher volumes and planned cost reductions. Selling, general and administrative expenses should rise moderately on a quarterly basis as we continue to increase our vehicle selling and servicing capabilities.