Tesla says Model 3 ramp is on track; results top expectations

Greg Lawrence
May 3, 2018

"It's really incredibly irresponsible of any journalists with integrity to write an article that would lead people to believe that autonomy is less safe", Musk said, according to a rough transcript of the call. The company reported a loss of $3.35 a share on revenue of $3.41 billion, both better than analysts' average estimates.

Tesla also expects five to six additional days of production down time for Model 3 production at its Fremont, California, plant during the second quarter.

Due to change in Tesla's accounting, its year-over-year and quarterly numbers such as automotive revenues and gross profit margins won't be compared directly, so the company will have to record some lease transactions as sales in its ledger, including all the revenue, income and costs for every single lease simultaneously, and not in terms of monthly increments spread over the total term of the lease.

To achieve profitability, Tesla will have to reverse what today amounts to a $22,584 pre-tax loss per vehicle built by the Silicon Valley company. What's more, Musk stated that all future Gigafactories would support the manufacture of the company's vehicles. So, right now, vehicle production and battery production, like battery production and motor and power electronics and charger production are at Giga, and then, we have our Fremont auto factory.

The CEO confirmed today that they started investing already, but capital expenditure related to Model Y is now low and it won't be significant until next year.

"Even at this stage of the ramp, Model 3 is already on the cusp of becoming the best-selling mid-sized premium sedan in the U.S., and our deliveries continue to increase", Musk and Tesla Chief Financial Officer Deepak Ahuja wrote in a letter to investors.

The Model Y will be the fourth and for now the last of the vehicle lineup planned by Elon Musk.

President Trump to meet with heroic crew of Southwest Airlines Flight 1380
A statement by Captain Shults and First Officer Darren Ellisor of Flight 1380 said, "Our hearts are heavy. We ask God to hold this family close as they grieve the loss of a loving wife and mother".

"I'm feeling quite confident about hitting positive cash flow in Q3". But some analysts have warned the firm faces a major cashflow crisis before the end of the year that may necessitate another round of fund-raising if it fails to tackle well-documented production issues.

Musk cut off analysts' queries about the company's capital requirements and whether it was retaining Model 3 reservation holders, calling the questions "so dry" and "not cool". "They're killing me", he said. "We're going to scrub the barnacles on that front", he said.

Tesla mistakenly added "too much automation too quickly" early in the process, he said.

Tesla Inc., which has had only two profitable quarters in its almost eight years as a public company.

Tesla's revenue for the quarter rose to USD3.41 billion from USD2.70 billion past year.

Tesla shares swerved slightly higher at first then fell by about 1% to $298 in after-market trades that followed release of the earnings figures. Tesla spent $3.4 billion in 2017.

Other reports by

Discuss This Article