Tesla records loss of USD702 million during Q1 2019

Tesla records loss of USD702 million during Q1 2019

Tesla has released its financial results for the first quarter of 2019, with the company recording a loss of USD702 million. This comes after back-to-back profitable quarters (Q3 and Q4) to close out 2018.

In Q1 2019, Tesla’s revenue stood at USD4.54 billion, which is considerably less than the USD7.22 billion it achieved in the three months ended December 31, 2018. However, the figure is higher than the USD3.41 billion is recorded in Q1 2018.

Revenue from automotive sales in Q1 2019 (USD3.51 billion) is less than half of Q4 2018 (USD6.07 billion), with many analysts attributing the dip to the phase-out of federal tax credits from January 1, 2019 after Tesla reached the threshold of 200,000 electric vehicles sold in July 2018.

Tesla’s cash reserve was also diminished to USD2.2 billion from USD3.69 billion at the end of 2018, with the company attributing this to a USD920 million convertible bond repayment and USD640 million used for its operations.

Tesla records loss of USD702 million during Q1 2019

Looking at the company’s line-up of vehicles, production and deliveries of the Model 3 for overseas markets began in Q1 2019, which resulted in 62,975 units being made in the aforementioned quarter, which is more than the 61,394 units produced in Q4 2018.

However, Model 3 deliveries stood at just 50,928 units, less than the previous quarter’s 63,359 units. According to Tesla, the comprehensive rollout of the Model 3 to the United States, China and Europe meant that even short delays caused some deliveries to be deferred to Q2.

Meanwhile, deliveries of the Model S and Model X slumped to 12,091 units from 27,607 units in the previous quarter, with the company citing the phase-out of federal tax credits and discontinuation of the 75-kWh battery pack variants as reasons. The latter also resulted in a rush by customers to secure units, causing the take rate to exceed what the company could supply.

Tesla records loss of USD702 million during Q1 2019

This isn’t helped by the update to the Model S and Model X production line to accommodate newer powertrains, which saw production of both models drop to 14,163 units from 25,161 units in Q4 2018.

In terms of outlook, Elon Musk is aiming to hit 360,000 to 400,000 deliveries in 2019, which represents an increase of 45% to 65% compared to 2018. The Tesla CEO is also hoping Gigafactory Shanghai reaches volume production early in Q4 this year, so Tesla will have the ability to produce up to 500,000 vehicles globally in 2019.

As for capital expenditure, Musk expects up to USD2.5 billion to be spent on increasing capacity and develop new vehicles, covering projects such as Gigafactory Shanghai, Model Y and Tesla Semi, as well as for the expansion of its Supercharger and service networks.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Time for Geely to step in and rescue them. With a foreign CEO, they will be gr8 success.

    Like or Dislike: Thumb up 18 Thumb down 20
    • Man C win EPL 2018/19 on Apr 27, 2019 at 9:36 am

      Also looking forward for Geely to buy KTM berhad, foreign CEO shall rise the commuter svc to ease traffic at KL.

      Like or Dislike: Thumb up 5 Thumb down 6
    • lao yee on Apr 29, 2019 at 12:54 pm

      Proton earlier doesn’t have brilliant management team and marketing, no surprise it lost. And they doesn’t have a clear strategy, planning and vision. Unlike Elon and Tesla, I suggest you read more about the founder and the car maker instead of just focus on the word ‘lost’and jump to conclusion. It makes you dumb.

      Like or Dislike: Thumb up 33 Thumb down 1
      • Lolwhut? on Apr 29, 2019 at 6:23 pm

        Yeah sure. When you have a leader that smokes pot and then curses on social media. That shows a lot about Elon and Tesla. lol.

        Like or Dislike: Thumb up 0 Thumb down 0
  • azrai on Apr 29, 2019 at 8:24 am

    Li Shufu has been reading this news since yesterday.

    Like or Dislike: Thumb up 1 Thumb down 0
  • longjaafar on Apr 29, 2019 at 11:19 am

    TESLA’s edge in electric cars is fast eroding. Their future does not seem to be very rosy.

    Like or Dislike: Thumb up 2 Thumb down 2
  • lao yee on Apr 29, 2019 at 12:55 pm

    Every trees grow fruit in its end.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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