• 8 hours The Surprising Businesses Deemed “Essential” During The Coronavirus Lockdown
  • 12 hours Priceless Van Gogh "Spring Garden" Painting Stolen
  • 14 hours Oil Falls To $20 For First Time In Nearly Two Decades
  • 16 hours COVID-19 Could Be The End Of U.S. Coal
  • 1 day How Much Does Your Social Security Number Cost? $4 On The Dark Web
  • 3 days Silver Stocks Have Been Decimated In The Coronavirus Sell-Off
  • 3 days How Blockchain Tech Could Make Mergers And Acquisitions More Efficient
  • 4 days America’s Shortage Of This Metal Keeps Trump Up At Night
  • 4 days Bidet Bonanza: Defying The Toilet Paper Shortage
  • 5 days U.S. Auto Sales Fall By 75%
  • 5 days Violating Quarantine? Big Brother Is Watching
  • 6 days Does Gold Still Have Some Room To Run?
  • 6 days Major Acquisition Gives The World’s First Green Ride-Share Another Edge
  • 6 days U.S. Pushes For Digital Currency For Immediate Stimulus
  • 7 days The Impossible Challenges Created By Growing Population
  • 7 days Gold Skyrockets After Fed Pledges "Unlimited" Cash To Boost Economy
  • 7 days World’s Richest Lose $1 Trillion In Stock Market Rout
  • 8 days Gas Stations Shut Down In Venezuela As Coronavirus Crisis Intensifies
  • 8 days The Best And Worse Case Scenario For The U.S. Stock Market
  • 8 days 3 Industries Soaring During The Coronavirus Crisis
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Irina Slav

Irina Slav

Oilprice.com

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

Contact Author

  1. Home
  2. Markets
  3. Other

Tesla Cash Burn Soars Amid Record Revenue

Tesla

Tesla booked higher than expected revenues and lower than expected operating losses for the first quarter of the year, leaving analysts confused again as to the future of the company.

At US$2.75 billion, Tesla’s automotive revenues were 27.4 percent higher on the year, which was a record high in the revenue department, while operating losses, at US$3.35 per share, were lower than the US$3.48 loss per share analysts had expected. Net loss, however, came in at a record US$785 million, with the company projecting it will move into the black in the third and fourth quarter of the year.

Cash fell from US$3.4 billion in January 2018 to US$2.7 billion in March, but Elon Musk told analysts during the conference call on the earnings statement that the company would not need to raise more funding this year, which baffled a lot of those present.

Tesla will be cutting its budget for the year to US$3 billion from US$3.4 billion with the focus of all its efforts continuing to be the ramp up of production of the Model 3, which reached 2,270 in the third week of April, with production consistently exceeding 2,000 cars for each of the first three weeks of last month.

This is less than half of what Tesla needs to be producing for it to become profitable. Despite assurances from Musk and CFO Deepak Ahuja that the ramp-up will happen in the second quarter, analysts are right to remain skeptical. This is by far not the first assurance that Tesla has given that it will hit its targets after strings of delays.

Still, the carnage many expected to be revealed at the first-quarter conference call did not come to pass, which should provide Tesla bulls with some hope. The company will be shutting down its Fremont factory again to ensure the Model 3 ramp-up and expects the 5,000 milestone to be reached by the end of June, generally in line with its earlier update on this most precious of all targets that was to be hit some time in the second quarter.

By Irina Slav for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment