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Tesla posts $3.4bn in revenue, aims 5000 cars a week

03 May 2018
Tesla posts $3.4bn in revenue, aims 5000 cars a week

Shares were hovering near breakeven at the start of the call, but the stock sank more than 5% after the tense exchange.

The overall story for Tesla today is that they are still losing money, while revenue is trending up.

Tesla's cash balance dropped but the US-based electric vehicle automaker ended with $2.7 billion in cash.

Ducking analysts' questions has a price: $2 billion. The company operates in two segments, Automotive, and Energy Generation and Storage.

Tesla burned through $700 million in cash last quarter.

The losses aren't due to lack of demand.

This is basically all par for the course at Tesla.

"Elon Musk famously said they wouldn't need to raise money by the end of the year". Finally, KeyCorp reiterated a "hold" rating on shares of Tesla in a research report on Wednesday, April 18th. If you consider deposits are a flat $1,000 then it's fairly easy to surmise that they have over 900,000 preorders. Atlantic Trust Group LLC acquired a new stake in Tesla during the third quarter worth $3,083,000.

Tesla is eating up cash as it continues grappling with Model 3 production issues.

The company also said it produced 2,270 Model 3 cars during the last week of April after shutting production down for a few days to address some assembly line issues. "Such service capacity is quicker to deploy, incurs lower upfront and operating costs and has continued to generate significantly higher customer satisfaction rate at an average of 98%".

In Q1, Tesla produced 24,728 Model S and Model X and 9,766 Model 3 vehicles, and delivered 21,815 Model S and Model X vehicles and 8,182 Model 3 vehicles - totalling 29,997 deliveries.

However, as seen by the quarter's cash bleed this is simply not enough. In a shareholder letter the company laid out plans to reach 5,000 cars per week. This number is specifically called out numerous times and Tesla is very confident now it can reach that number by the end of July.

According to Recode, the company lost $710 million on $3.4 billion in revenue as it struggled to meet the production goals for its mass-market vehicle Model 3.

"Ultimately, the growth of Model 3 and the profit associated with it will help us accelerate the transition to sustainable energy even faster", the company buoyantly predicted.

The way Musk spins it, during some peak hours, the company is already producing what would amount to 5,000 cars per week at a potential sustained rate.

"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 US, and our deliveries continue to increase", according to the letter, co-written by Telsa Chairman and CEO Musk and Chief Financial Officer Deepak Ahuja. Tesla is fully aware of this and plans to celebrate 10,000 Model 3 vehicles manufactured per week by the end of 2019.

The manufacturing hangups have investors wondering if Tesla is headed for a cash crunch.

Musk was in "rare form" when confronting his critics but made it clear that the short-term focus of Tesla continues to be squarely on the Model 3, says Jessica Caldwell, executive director of industry analysis at Edmunds. 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.