Tesla Achieves New Record Day Of Model 3 Production, But Cutting It Close For Quarterly Goal

Tesla on Wednesday booked a record quarterly loss that missed Wall Street expectations, although CEO Elon Musk expects the company to turn profitable starting in the second half of the year.

The electric car maker said it will continue to ramp up production of the Model 3, forecasting a weekly rate of 6,000 vehicles by late August. For the full third quarter, Tesla expects to build 50,000 to 55,000 Model 3 sedans, and deliveries should exceed the company’s production total, according to a letter to shareholders.

Tesla also said it repeated weekly Model 3 production of 5,000 cars “multiple times.” Some analysts have questioned whether Tesla can maintain a higher rate of production after rushing to meet an internal target to build 5,000 Model 3s per week by the end of June.

Beyond its goal of making 6,000 vehicles a week, Tesla hopes to expand Model 3 production to 10,000 units in an unspecified timeframe.

“We like the more muted tone of the company’s outlook, with the absence of unnecessary new stretch goals,” CFRA analyst Efraim Levy wrote in a note to clients. “Perhaps it reflects a more cautious Elon Musk.”

During a conference call with analysts, Musk said late Wednesday he expects Tesla to report profits in all future quarters as long as the U.S. economy remains strong. He previously said Tesla would achieve positive cash flow and profits in the third and fourth quarters of 2018.

Musk also apologized to analysts for cutting off questions in Tesla’s previous earnings call, saying there was “no excuse for bad manners.”

Tesla shares climbed more than 9% in after-hours trading. The stock was down about 3.4% year-to-date as of Wednesday’s close.

As production increased, stronger sales of the Model 3 – a vehicle that’s seen as critical to Tesla’s plans for future growth – helped the company close the second quarter with $2.2 billion in cash. Negative free cash flow of roughly $740 million was less than Wall Street feared. Analysts have suggested that Tesla will need to raise cash to support the Model 3 and other vehicles in the company’s pipeline, but Musk reiterated Wednesday that it won’t need to seek additional funds.

Tesla projected 2018 capital spending of slightly less than $2.5 billion, compared to $3.4 billion last year.

The automaker completed a broad restructuring during the quarter, including layoffs affecting 9% of Tesla’s employees.

Palo Alto, California-based Tesla recorded a loss of $717.5 million in the latest quarter, more than doubling a year-ago loss of $336 million. On an adjusted basis, Tesla lost $3.06 per share, missing the consensus estimate of $2.92.

Revenue jumped 44% to $4 billion, beating analysts’ forecast of $3.92 billion.

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Source : https://finance.yahoo.com/news/tesla-reports-steeper-loss-says-204553647.html

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Tesla Achieves New Record Day Of Model 3 Production, But Cutting It Close For Quarterly Goal

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Tesla Achieves New Record Day Of Model 3 Production, But Cutting It Close For Quarterly Goal

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Tesla Achieves New Record Day Of Model 3 Production, But Cutting It Close For Quarterly Goal

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Tesla Achieves New Record Day Of Model 3 Production, But Cutting It Close For Quarterly Goal