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Tesla Posts Quarterly Loss, Model 3 Production on Track

Tesla Posts Quarterly Loss, Model 3 Production on Track
(AP)

Wednesday, 02 May 2018 04:53 PM EDT

Tesla Inc on Wednesday posted its worst ever quarterly loss and said its Model 3 production target remains on track, expecting about 5,000 per week in about two months.

Tesla said it produced 2,270 Model 3s per week in the last week of April, up from 2,250 in the second week of the month.

In order to achieve this production rate, Tesla plans to take additional days of downtime during the second quarter.

Tesla reported a loss of $709.6 million, or $4.19 per share, for the first quarter ended March 31, compared with a loss of $330.3 million, or $2.04 per share, a year earlier.

Excluding items, Tesla had a loss of $3.35 per share. Analysts had expected a loss of $3.58 per share, according to Thomson Reuters I/B/E/S.

The company said it ended the quarter with $3.2 billion in cash after spending $655.7 million in quarterly capital expenses.

Shares of the Palo Alto, California-based company were up nearly 1 percent at $303 in extended trading.

The lack of Model 3 revenue has exacerbated Tesla's cash burn as the company continues to spend on its assembly-line and prepares for new investments on multiple projects in the pipeline, such as the Model Y and its Gigafactory in Nevada.

Moody's, which downgraded Tesla last month, has estimated that Tesla will burn about $2 billion in cash this year.

© 2026 Thomson/Reuters. All rights reserved.


StreetTalk
Tesla said it produced 2,270 Model 3s per week in the last week of April, up from 2,250 in the second week of the month.
tesla, earnings, quarter, loss
226
2018-53-02
Wednesday, 02 May 2018 04:53 PM
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