Tesla's Record-Setting $710 Million Loss Sends Shares Tumbling

Tesla's Record-Setting $710 Million Loss Sends Shares Tumbling

Tesla affirmed on Wednesday that it aims to build 5,000 Model 3 sedans per week by the end of the second quarter.

"I think we're really well-positioned", Musk said, for having "ultimately millions of shared, autonomous electric vehicles". "The reality is, you're not a real company until you are". "That's our focus right now".

The electric-car maker is now maxed out at 2,270 Model 3s a week, short of the 2,500 CEO Elon Musk promised would be produced weekly by the end of the quarter. The cash burn could put pressure on the company to borrow more or sell additional shares to raise more cash.

The company's stock initially rose - but then fell sharply as analysts on a conference call questioned CEO Elon Musk on costs and production.

He then took several questions in a row about plans for a self-driving vehicle network and other long-term projects from the host of a YouTube channel focused on investing, praising the questions as not boring.

Excluding items, Tesla had a loss of $3.35 per share. Tesla reported sales of $2.70 billion during the same quarter last year, which would suggest a positive year over year growth rate of 20.4%. Tesla also cited that the vehicle has lighter wiring and fewer controllers, connectors, and CPUs compared to "average vehicles".

Problems with building Model 3s at a plant in Fremont, California, got so bad during the quarter that Musk has tweeted he's sleeping at the factory, automation is overrated and more humans are needed to build the cars.

Tesla did not break out a cash flow calculation as it has in previous quarters.

Tesla said that it expects to achieve profitability in the second half of 2018, as long as it executes "according to our plans".

But in a letter to shareholders Tesla is still bullish and calculates that if it can bring Model 3 production volume to 5,000 units per week and can grow gross margin to break-even in Q3 and Q4.

Spurs close in on top-four finish after beating Watford
Spurs could go a long way to booking a third successive season of Champions League football when they host Watford on Monday. He added: " Watford played well, they created some chances - great chances - and I think Hugo Lloris was fantastic".

"We now expect to reach a module production rate of 5,000 vehicle sets per week even before we install the new automated line designed and built by Tesla in Germany", the company said.

The Model 3's assembly line has 50 different steps and the vehicle is built on a singular body frame.

Musk said the restructuring would involve getting rid of third-party contractors that have grown out of control. We can say with certainty that Elon Musk will be under close scrutiny by the media and by investors as Q2 unfolds, with particular attention being paid to the continued production ramp for Model 3.

"We have temporarily dialed back automation and introduced certain semi-automated or manual processes while we work to eventually have full automation take back over", the company said.

Tesla (NASDAQ:TSLA) last issued its quarterly earnings results on Tuesday, May 1st. It previously forecast spending of at least $3.4 billion. Revenue beat estimates of $US3.28 billion.

Net reservations for the Model 3, including configured orders that had not yet been delivered, exceeded 450,000 at the end of the quarter, Tesla said.

The company's stock price shed almost 5% of its value during after-hours trading Wednesday. Insiders sold a total of 5,529 shares of company stock worth $1,786,841 over the last ninety days.

He claimed that "people might actually turn it off and then die" because of the stories following two fatal crashes of Teslas on autopilot this year. The company also pulled in $3.41 billion in revenue, surpassing the $3.22 billion expected by The Street. Many had predicted massive cash hemorrhages and a fairly bleak outlook for the future based on continued production woes, factory worker injury reporting scandals and credit rating downgrades.

Tesla's market cap is now $50.9 billion, making it the second-most valuable United States automaker behind General Motors Co. At one point it had more than 500,000 potential buyers on a waiting list.

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