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

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

Tesla Inc investors gave a rare rebuke to iconoclastic Chief Executive Elon Musk on Wednesday after he cut off analysts asking about profit potential, sending shares down 5 percent despite promises that production of the troubled Model 3 electric auto was on track.

But by the end of Tesla's first-quarter conference call, Musk was berating analysts for asking "boring" questions, the shares had plunged and any shred of predictability was out the window.

Back in April, Tesla had announced that it had failed to meet its Q1 production and delivery targets for its Model 3, which was an electric sedan priced at a floor price of $35,000.

Shares in Tesla, which is based in Palo Alto, California, fell more than 4 percent in after-hours trading after the earnings report.

CEO Elon Musk conceded that criticism is valid but said during a sometimes-testy conference call with analysts Wednesday that it's "quite likely" Tesla will make money and have positive cash flow in the third quarter. These questions are so dry. Another analyst asked about a capital requirement before being cut off.

Tesla's other main vehicles, the Model S and Model X, start around $70,000, and go well above the $100,000 mark when extra amenities and specialized technologies are included in the vehicle.

Musk acknowledged error recently in over-automating the Model 3 assembly-line, which has resulted in production delays, but it is still unclear how long and costly it will be to unwind this mistake.

He also provided some stock advice for traders who speculate on the company that Musk himself has admitted is something of a "drama magnet". For the next financial year, analysts forecast that the firm will report sales of $26.08 billion per share, with estimates ranging from $20.75 billion to $34.82 billion. "I'm on record as saying I believe they definitely will", Barton said.

During the quarter the company burned cash at a rate of $57 million per week. The result was also worse than analysts' average estimate for cash burn of about $978 million.

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

Musk has already told his staff that he expects "to reach full GAAP profitability in the third and fourth quarters of 2018".

However, Tesla plans to tie its loose ends by planning to increase the Model 3 production rate to 6,000 cars per week by the end of June.

Tesla said Wednesday it was making 2,270 Model 3's per week in April and posted three straight weeks producing 2,000 or more cars.

Net reservations, including configured orders that had not been delivered, "continued to exceed 450,000" at the end of the first quarter, the company said.

Automotive revenue rose only 1 percent from the prior quarter to $2.74 billion.

Tesla's record net loss in the first quarter and fast-burn through cash is raising questions about the company's future and whether it will be able to pay all of its bills. Nomura restated a "buy" rating and set a $420.00 price objective on shares of Tesla in a report on Thursday, March 29th.

Tesla said that for the period ending March 31, it lost $4.19 a share, on revenue of $3.41 billion.

The company said it will reduce capital spending for 2018 from $3.4 billion to $3 billion.

The Model Y will be built at a new factory, with the announcement of exactly where the factory will be to be made no later than Q4 of this year.