• 10 hours $5 Million Gold Toilet Vanishes
  • 10 hours Gold On The Rise After Fed Rate Cut
  • 13 hours Oil Trader Loses $320 Million On Derivative Bets
  • 1 day S&P 500 Officially In An Earnings Recession
  • 2 days Miners Are Weathering The Trade War Storm
  • 2 days UK Credit Card Interest Rates Are Skyrocketing
  • 2 days From Frenzy To Flop, The Death Of This Year’s Most Hyped IPO
  • 3 days Are Smart TVs Spying On Us?
  • 3 days Is Fossil Fuel Divestment A Waste Of Time?
  • 3 days A Russian Billionaire’s Space Quest To Save Humanity
  • 4 days Markets Take Breather As Consolidation Continues
  • 4 days Economic Woes Weigh On Copper Prices
  • 4 days World's Largest IPO At Risk Following Drone Strikes
  • 4 days Gold Is Beating Buffett’s Berkshire Hathaway
  • 5 days What’s Behind The Silver Sell-Off?
  • 5 days The Retail Apocalypse Is Accelerating
  • 5 days The Top Tech Stocks Of The Year
  • 5 days America’s Workforce Elderly Workforce To Double By 2028
  • 6 days Toyota Tests Solar-Powered Prius
  • 6 days Why The Gold Rally Flatlined
Wall Street Unfazed By Recession Fears

Wall Street Unfazed By Recession Fears

The Wall Street propaganda machine…

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