Tesla has released its financial results for the first quarter of 2018, where the company recorded its highest ever quarterly loss ever at US$784.6 million, which exceeds the US$675.4 million loss experienced in Q4 2017.
However, the company managed to register a record revenue of US$3.4 billion in the first three months of the year. The company now enters Q2 2018 with a cash balance of about US$2.7 billion, a figure that is about 20.8% less than what it had at the end of 2017 (about US$3.4 billion).
Meanwhile, the company’s capital expenditure in Q1 2018 stood at about US$656 million, which is lower than the almost US$787 million spent in Q4 2017. Elon Musk, CEO of Tesla, also revealed that total capex for 2018 to be slightly below US$3 billion – lower than the US$3.4 billion spent across 2017.
Focusing on vehicle production, Tesla stated that prior to a planned shutdown in mid-April, more than 2,000 units of the Model 3 were produced weekly, with the figure going as high as 2,270 units in the last of those weeks. Even so, these numbers do not meet the target set during its previous announcement, which was 2,500 units weekly by the end of Q1 2018.
It hopes to increase this volume to 5,000 units per week in about two months when it installs a new automated line designed and built by Tesla in Germany. This will assist in growing the Model 3’s gross margin from negative in Q1 to 2018 to breakeven in Q2, and positive in Q3 and Q4. The company adds that only when it hits the 5,000-unit weekly production target will additional options for the Model 3 like all-wheel-drive and a base model with a standard-sized battery pack be offered.
Including other models, 24,728 Model S and X and 9,766 Model 3 vehicles were produced in Q1 2018, with 21,815 Model S and Model X vehicles and 8,182 Model 3 vehicles being delivered to customers.
In Q2 2018, Tesla will shut down production for about 10 days as it tries to address bottlenecks across its production lines to increase production. Along with the above-mentioned items, the company expects to generate positive cash in Q3 and Q4.
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They are done. Elon’s first mistake was that Falcon door white elephant. Tesla had a huge headstart and lost most of it right there. The model 3 came too late.
Do not take the news seriously. They are resilient with negative outlook. Besides these reviews come from stock investors’ opinion and financing institution who are looking at their performance from a purely business and investment point of view.
Similar thing happened when they made the Model S.
The end is neigh. The Geely flag come marching on!
Geely will soon also buy our country up with the number of things we are selling to China
The end is near for your Gov party
Luckily Tesla is not related to Malaysian…
If it is related to Malaysian, like previously Lotus owned by Proton, you loss a few millions only you’re gonna hantam like hell.
did tesla receive 1.5 billion soft loan from american taxpayer ?
Good one… Typical example of inflated hype and marketing, but fall flat in execution… What Tesla is reaping now is the outcome, due to botched execution, with half baked planning… Honestly, Elon Musk should just throw the towel and shift vehicle manufacturing to Mexico or China… With high manufacturing and Logistics cost shipping components around the world to California… It is crazy… Plus the fact that they can’t even sort out issues on their bread and butter model… Heck they should learn from Chevrolet, on how they built their Chevy volt model…. Very sad
Elon Musk, the CEO of Tesla must be a GENIUS !!! Why ?! Becos he can keep the firm running even when they lose US784 million in 1st quarter of 2018.
I did not even factor in the past results here mind U. I betcha he can even sell an ice box to the Eskimo or sell a comb to a Monk !!
Clearly none of you have any background in accounting. What matters most is the financial year results. Companies post losses of 1 billion in Q1 & Q2 but make 3 billion in Q3 & Q4..
I believe, john would agree they will perform better if geely buy that company
Geely waiting for it to crash and burn then come buy all its IP and assets for cheaps.
company from China will bailout tesla.
Proton and Malaysia is the best…..Good times, bad time…….can survive….