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Tesla reports great loss for the first quarter

After two back-to-back quarters of profit, Tesla lost $ 702 million in the first quarter of 2019, the company announced on Wednesday. Tesla has been expected to incur a loss for the quarter since the company admitted earlier this month that it had suffered a large decline in model S and model X deliveries. But quarterly losses were greater than expected for many Wall Street analysts. The markets were not out of the negative earnings news. After the initial drop of about 2 percent, Tesla's share price bounced back and is now about where it was when earnings numbers were released. Cash flow fell from $ 3.7 billion at the beginning of the year to $ 2.2 billion at the end of March. But this is not as cruel as it may seem, because this primarily reflects Tesla's paying a $ 920 million loan that came in March. The quarter for the quarter was $ 4.5 billion. This was a major decline from the fourth quarter of 201 8 and was below the analyst's expectations. But it was still a significant increase from the quarter of $ 3.4 billion. Both Tesla's reduced cash and the weak revenue figure reflect the fact that Tesla had a lot of cars in transit to customers at the end of the quarter. Many of these cars were part of a great pressure to sell model 3 in Europe. Most of these sales will be terminated early in the current quarter, giving rise to second…

 Elon Musk.

After two back-to-back quarters of profit, Tesla lost $ 702 million in the first quarter of 2019, the company announced on Wednesday.

Tesla has been expected to incur a loss for the quarter since the company admitted earlier this month that it had suffered a large decline in model S and model X deliveries. But quarterly losses were greater than expected for many Wall Street analysts.

The markets were not out of the negative earnings news. After the initial drop of about 2 percent, Tesla’s share price bounced back and is now about where it was when earnings numbers were released.

Cash flow fell from $ 3.7 billion at the beginning of the year to $ 2.2 billion at the end of March. But this is not as cruel as it may seem, because this primarily reflects Tesla’s paying a $ 920 million loan that came in March.

The quarter for the quarter was $ 4.5 billion. This was a major decline from the fourth quarter of 201

8 and was below the analyst’s expectations. But it was still a significant increase from the quarter of $ 3.4 billion.

Both Tesla’s reduced cash and the weak revenue figure reflect the fact that Tesla had a lot of cars in transit to customers at the end of the quarter. Many of these cars were part of a great pressure to sell model 3 in Europe. Most of these sales will be terminated early in the current quarter, giving rise to second quarter financial figures.

In a conference call that followed the results, business executives said they expected a quarterly loss in the second quarter, followed by a possible profit in the third quarter. Tesla projects 90,000 to 100,000 deliveries during the second quarter, an increase from 63,000 in the first quarter. Tesla says it still expects to deliver between 360,000 and 400,000 vehicles for the year, which means that the company will deliver at least 100,000 vehicles per quarter for the rest of the year.

An investor asked Elon Musk if Tesla should raise more money the company’s relatively low cash balance. Musk said he was open to do it but didn’t think it was necessary right away.

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