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Tesla posts record loss in Q1, Model 3 production hit 2,270/week in April

For Q1 2018, Tesla reported a record loss of $709.6 million, ($4.19 per share) compared with a loss of $330.3 million ($2.04 per share) a year earlier and a $675 million loss in Q4 2017. The company also reported “significant progress on the Model 3 ramp”, with production hitting 2,270 units per week in April.

Tesla’s share price dropped 4.6% in after hours trading to $287.46/share.

Net reservations for the Model 3, including configured orders not yet delivered, exceeded 450,000 at the end of the first quarter. Q1 automotive revenue rose only 1% from the prior quarter to $2.74 billion.

Tesla said that if it executes according to plan, it will at least achieve positive net income excluding non-cash stock based compensation in Q3 and Q4 and also achieve full GAAP profitability in each of these quarters. This is based on its ability to reach Model 3 production volume of 5,000 units per week and to grow Model 3 gross margin from slightly negative in Q1 2018 to close to breakeven in Q2 and then to highly positive in Q3 and Q4.

Tesla said that it continues to target Model 3 production of approximately 5,000 per week in about two months, “although our prior experience has demonstrated the difficulty of accurately forecasting specific production rates at specific points in time because of the exponential nature of the ramp.

After achieving the long-targeted production rate of 5,000 per week, Tesla will begin offering new options such as all-wheel-drive and the base model with a standard-sized battery pack.

Ultimately, Tesla hopes to add incremental capacity to get to a 10,000 unit weekly rate.

Comments

HarveyD

TESLA continues to be plagued with startup (initial) delays and slow ongoing under production factories and high production cost.

Is California the right place to produce lower cost EVs to compete with units built in Asia? Moving the factories (cars/trucks and batteries) to Asia or Eastern EU may be required to balance the bottom line?

Floatplane

Yawn. Harvey sounding like a broken record again. Same unfounded remarks as last time. Anytime Tesla gets mentioned he trolls out this rubbish.

HarveyD

Floatplane:

Please check where your high quality smart phones, flat TVs. computers, appliances, smart watches, LED lights, tablets, printers, efficient small cars and SUVs, EV batteries, regular batteries, EV parts, a high percentage of your furniture etc etc come from?

Compare prices and you may realize that Asia produces high quality at a much lower cost/price.

The real cost/price of EVs made by TESLA is at least 15% to 25% more than charged. The $$$$B provided by the share buyers are subsidizing each car produced.

Tesla will have to find ways to better match cost to revenues to produce profits instead of deficits. One way to do it is to move to more productive lands..... It cannot continue to rely on the issue of more and more shares. It will eventually backfire.

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