Daily Management Review

Tesla reports huge loss in Q1 2018


05/03/2018


The manufacturer of electric vehicles Tesla reported a record quarterly loss. It amounted to 710 million dollars in the first quarter of 2018. The company has been reporting a loss for the fifth consecutive quarter, writes Fortune.



Sam Felder via flickr
Sam Felder via flickr
Sales for the reporting period amounted to 3.4 billion dollars. Adjusted loss was 3.35 dollars per share, better than the forecast of analysts, who on average expected this figure at $ 3.54 per share, writes The Wall Street Journal. At the beginning of the quarter, analysts expected an adjusted loss of $ 2.02 per share, the publication recalls.

For the quarter, Tesla spent about 1.1 billion dollars of free cash, the report says.

In the report, the company expressed an optimistic forecast for the remainder of the year. Tesla achieved "significant progress" in the production of Model 3 cars intended for the mass market, the company said in a letter to shareholders. If the production reaches five thousand vehicles a week, Tesla will be profitable in the third quarter. In April, the company produced about 2.27 thousand Model 3 cars per week, but by the end of June their output will increase to the target of five thousand, Elon Musk promised.

In the first quarter of 2017, the loss of Tesla amounted to 330 million dollars, for the whole of last year its loss exceeded 1.4 billion dollars.

After the presentation of the quarterly report, Tesla shares went down almost 6% in electronic trading, to $ 283.1 per share, notes Fortune.

According to Bloomberg, at the moment Tesla is "burning" $ 6500 every minute. At the beginning of the article, there is even a special counter that shows how much money the company is losing while the user has the article open, and the figure increases very quickly. The last 5 quarters of the company showed negative financial results, losing huge amounts. If the same situation continues, Tesla can remain without money until the end of the year and will need additional financial resources.

Bloomberg writes that the situation in Tesla itself is incredible. On the one hand, no one so skillfully attracted as much investment as Elon Musk. He is fantastically spending all this money, having time to joke about bankruptcy of the company on his Twitter. Nevertheless, many investors trust Mask: the publication says that he is the person who literally "bet everything" on the company’s success, therefore he is maximally motivated.

source: bloomberg.com, fortune.com






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