• 8 hours Is This The World’s First Truly Democratic Stock Exchange?
  • 11 hours India’s Wealthiest Set To Hold $23 Trillion By 2028
  • 14 hours First Quarter Profits Slip For World's Top Oil Companies
  • 16 hours The Yuan May Be China's Biggest Weakness
  • 1 day Hedge Funds Having A Banner Year
  • 1 day Disney Heiress Asks “Is There Such A Thing As Too Much?”
  • 2 days BHP Turns Bullish On EVs
  • 2 days Investors Turn Bullish On America’s Nuclear Decommissioning Business
  • 2 days The $90M Inflatable Rabbit Redefining Modern Art
  • 2 days Huawei’s Fate In The Air
  • 3 days Tesla Slashes Prices Again
  • 3 days The Modern History Of Financial Entropy
  • 3 days Italy’s Central Bank Embraces Sustainable Investing
  • 3 days Trump Lifts Metals Tariffs To Cool Simmering Trade War
  • 4 days Researchers Push To Limit Space Mining
  • 4 days Could China Start Dumping U.S. Treasury Bonds?
  • 4 days Is Winter Coming For HBO?
  • 5 days Rise Of EVs Signals Peak Gasoline
  • 5 days Jeff Bezos Doubles Down On Space Colonization Ambitions
  • 6 days Gold Mining Stocks Stuck In Limbo
Fake News Sinks Shares In UK-Based Bank

Fake News Sinks Shares In UK-Based Bank

UK-based Metro Bank is the…

Warren Buffett Is Betting Big On Energy Stocks

Warren Buffett Is Betting Big On Energy Stocks

One of America’s most lauded…

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. Investing
  3. Stocks

Tesla Posts Surprising $700 Million Loss In Q1 Earnings Report

Tesla

Tesla may soon announce a capital raise after Elon Musk suggested “There is some merit to raising capital,” adding “It’s probably about the right time,” as quoted by Reuters. The comments by Tesla’s CEO followed the release of the company’s first-quarter results yesterday.

The EV maker reported a net loss of US$702 million as well as a US$1.5-billion decline in cash and cash equivalents, to US$2.2 billion. What’s more, Model 3 production only inched up by 3 percent during the quarter, to 63,000, which must have disappointed shareholders eager to see the strong growth in production promised by the company.

Going forward, Musk once again revised down production targets: the gigafactory in Shanghai, currently in construction, would produce an average 1,000 or maybe 2,000 Model 3s weekly this year, rather than the 3,000 expected earlier.

Overall, however, Tesla kept its production forecasts for the year unchanged at 360,000 to 400,000. A production rate of 500,000 cars is also a possibility in case the Chinese factory achieves volume production in the last quarter of the year. Related: Investors Are Piling Into Tax-Exempt Municipal Bonds

As for the next financial results of the company, this quarter’s loss will be a lot lower than the one for the first quarter, and in the third quarter the carmaker will return to the black. The need for a capital raise, however, may worry investors, whose lives have been kept interesting by Musk and company without a doubt.

The latest reason to worry came earlier this month, when one of the company’s largest shareholders, T. Rowe Price, cut its the stake he holds in Tesla via several funds sparking concern in the market. Between September and December last year, the funds reduced their holding in the EV maker from 10.2 percent to 5.2 percent. The cutting continued in 2019 as well: according to Reuters Refinitiv data, the asset manager divested 92 percent of its previous interest in Tesla.

By Irina Slav for Safehaven.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment