Tesla more than doubles revenue, but losses increase

Tesla more than doubles revenue, but losses increase

There’s no stopping Tesla’s meteoric rise, it seems – according to Reuters, the electric vehicle manufacturer has more than doubled its revenue in the first quarter, on the back of record sales of the Model S sedan and Model X SUV. In total, 25,000 vehicles found homes in the first quarter ending March 31, a 69% increase compared to the year before and the highest since the Fremont-based company went public in 2010.

As such, revenue has surged (geddit?) from US$1.15 billion (RM5 billion) to a staggering US$2.7 billion (RM11.7 billion), surpassing analysts’ expectations of US$2.62 billion (RM11.3 billion). The figures include the full quarter earnings of solar panel installer SolarCity for the first time, after Tesla purchased it last year.

It’s not all smiles, however, as Tesla also reported a net loss attributable to common shareholders of US$330.3 million (RM1.4 billion), up from US$282.3 million (RM1.2 billion) the year before. That figure equates to US$2.04 (RM8.82) lost per share, down from US$2.13 (RM9.21).

Excluding items, the company lost US$1.33 (RM5.75) per share, up from the 81 cents (RM3.50) per share that analysts were expecting. Despite this, Tesla said it has increased its reserve of cash and cash equivalents, from US$3.39 billion (RM14.7 billion) in the previous quarter to US$4.01 billion (RM17.3 billion).

Tesla more than doubles revenue, but losses increase

The latest results come as Tesla is gearing up for the market launch of its entry-level Model 3, which it claims is still on track for later this year, with initial production set to commence in July. The company said yesterday that it is expecting to have put in slightly over US$2 billion in year-to-date capital expenditure by the time production of the car kicks off.

Reuters says Tesla is banking on the Model 3, pricing of which is expected to start at $35,000 (RM151,300), to help it achieve its goal of producing 500,000 vehicles in 2018. The company repeated that it aims to deliver between 47,000 and 50,000 units of the Model S and Model X in the first half of 2017, a target that it announced last year.

Analysts at financial data and analytics firm FactSet expects deliveries to hold steady at 25,000 units in the current quarter. Last month, Tesla overtook Ford and General Motors to become the US’ most valuable carmaker in terms of market capitalisation; up to the closing of markets yesterday, the company’s shares rose 45.6% this year, dropping 1% in trading after the close.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Sgt Scoop on May 04, 2017 at 10:52 am

    This is a company valued at almost $50bn and they sell less cars globally than Honda does in Malaysia.

    Like or Dislike: Thumb up 0 Thumb down 0
    • karam singh on May 05, 2017 at 12:00 am

      It doesn’t focus only on cars la brother.
      Battery, Solar, & many more.

      Like or Dislike: Thumb up 0 Thumb down 0
    • stasta on May 08, 2017 at 5:28 pm

      ferrari and porsche also sell less cars than proton. so what ?

      Like or Dislike: Thumb up 0 Thumb down 0
  • Donno on May 04, 2017 at 11:01 am

    TESLA & PROTON same same predicament.

    Like or Dislike: Thumb up 0 Thumb down 0
  • heybadigol (Member) on May 04, 2017 at 11:13 am

    Being a fairly new company (startup) , they are still having a lot of initial expenses, which will eventually reduce as they get more sales volume. Perhaps they havent yet gotten the economies of scale of more mature car companies. Best of luck to them in the future.

    Like or Dislike: Thumb up 2 Thumb down 0
  • BowArrow on May 04, 2017 at 11:32 am

    “….Reuters says Tesla is banking on the Model S, pricing of which is expected to start at $35,000 (RM151,300)….” I think u meant Model 3..?

    Like or Dislike: Thumb up 3 Thumb down 0
    • Jonathan Lee (Member) on May 04, 2017 at 12:03 pm

      Indeed, I did mean the Model 3; the article has been corrected. Thanks for pointing it out!

      Like or Dislike: Thumb up 1 Thumb down 0
    • They are losing a lot of money per car made since they are selling way below cost price to be competitive in the market. Tesla is a conman company run by a showman and the only reason it exist is to siphon US grant money into crazy but glamorous business ventures.

      Like or Dislike: Thumb up 3 Thumb down 2
      • Mikey on May 04, 2017 at 4:03 pm

        U mean they are running a scam like our very own ….
        WOW, looks like M’sia have exported a very “profitable” glamorous business ventures 2 the US of A. Must ask Elon Mask for copyright/royalty. Hehehe.

        Like or Dislike: Thumb up 0 Thumb down 0
      • stasta on May 08, 2017 at 5:30 pm

        which other electric car can seat 5 people, do 0-100 kmph in less than 3 seconds, and travel 500km on a battery charge ?

        Like or Dislike: Thumb up 1 Thumb down 0
  • Same as P1. RM1.5B to RM1.8B

    Like or Dislike: Thumb up 2 Thumb down 1
  • Why cant malaysia build companies so innovative like this? :( :(

    Like or Dislike: Thumb up 0 Thumb down 0
  • Middle Age Driver (Member) on May 04, 2017 at 3:05 pm

    Making loss now is ok for Tesla as its still expanding with more products. Important to note is the stagering increase in sales. The value is in longer term for this company. When you have declining sales, making loss and no significant future products like Proton, then its a differrent story.

    Like or Dislike: Thumb up 4 Thumb down 2
    • Betui, betui

      Like or Dislike: Thumb up 1 Thumb down 0
    • True, the cost of buying the future. It will get less expensive for them in the future since they have started now

      Like or Dislike: Thumb up 0 Thumb down 0
 

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