Tesla Loss Doubles In First Quarter But Results Beat Consensus

Elon Musk

The 25-year-old retail investor tweeted at Elon Musk on Monday, seeking to ask him a "crowdsourced" question during Wednesday's conference call. Total net losses were a record $784.6 million ($4.19 per share), the firm said on Wednesday.

He also said it would not be produced at Tesla's main factory in Fremont, California.

Tesla had $2.67 billion in cash on hand at the end of the first quarter, down from the $3.37 billion at the end of a year ago. What's more, Musk stated that all future Gigafactories would support the manufacture of the company's vehicles. "They're killing me", Musk said after an analyst asked about Tesla 3 figures, while another analyst asked about capital requirement before also being cut off.

In its letter, Tesla said Model 3 production hit 2,270 per week at the end of April, the third-straight week that it reached over 2,000. Musk also noted that the upcoming facility "won't be making Model S and Model X, but probably Model 3, probably Model Y primarily for the local Chinese market". Tesla said it was targeting a 5,000-a-week rate by the end of June, and anticipated turning the gross margin on the Model 3 from slightly negative to break-even by then.

The company said it improved battery module production during the quarter, overcoming a large bottleneck, and it now expected to hit 5,000 Model 3s per week around early July.

In a Twitter post from March 2017, Tesla's head honcho made the announcement about plans to roll out a Model Y, saying the smaller electric crossover would arrive "in a few years".

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Furthermore, Musk, who has always been hyping a Model Y architecture aimed at rapid and simple manufacturing, doubled down on the hype by saying that it will be "a manufacturing revolution".

Investing.com analyst Clement Thibault said the reduction was noteworthy, "but in the long run given challenges that lay ahead of Tesla, I don't think it is going to make or break the company".

Tesla did not break out a cash flow calculation that it had included in previous quarters.

Musk is known for his quirks, but investors appeared to be put off. Tesla shares were down almost 5% during after-hours trading, despite posting better-than-expected earnings results. His conversation with Musk and the other Tesla executives lasted more than 20 minutes.

Musk's update on Tesla's next Gigafactory in China was in line with his statements back in February during the Q4 2017 earnings call.

Musk, 46, said he won't need to go back to equity or debt markets this year to seek additional funds for Tesla, but crossing Wall Street may be a bad idea. At one point it had more than 500,000 potential buyers on a waiting list. It said net reservations for the Model 3, including configured orders not yet delivered, exceeded 450,000 at the end of the first quarter.

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