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.