Tesla Q1 burning money lower than expected, musk expects profit in the second half

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 Tesla Q1 burning money lower than expected, musk expects profit in the second half


NetEase news on May 3rd news, according to foreign media reports, local time on Wednesday, electric auto maker Tesla issued the first quarter of the financial report, showing that the companys losses are lower than analysts expectations. In addition, Teslas cash balance at the end of the first quarter was $2 billion 700 million. Tesla shares rose sharply after the market, once rose 2%, 1.5 hours after the release of the earnings report fell over 1%. After breaking up the news that the musk phone would refuse to answer Wall Street analysts questions, it dropped by more than 6%. Although since April, Tesla has invested a lot of money in upgrading the Model3 capacity of its electric vehicle, which has been burning faster this season, but the companys losses are lower than analysts expectations. Of course, this does not fundamentally solve the question of whether Tesla needs to raise more capital in the near future. Chief executive Ilon Mask (ElonMusk) continues to say that it does not have a plan to raise extra funds, and the company is expected to make a profit in the second half of the year. At the end of the season, Teslas cash balance was $2 billion 700 million, and its expected capital expenditure was lowered from less than $3 billion 400 million to $3 billion in the earnings report. The companys earnings data are better than those of Wall Street. The adjusted earnings per share were $3.35 per share, and Thomson Reuters predicted $3.58 per share, while the companys revenue was $3 billion 410 million in the quarter, and Thomson Reuters was forecast to be $3 billion 220 million. It is reported that in the first quarter, Tesla has invested a lot of money to improve the production line of Fremont plant and super battery factory in California to increase production capacity. According to e-mail sent to employees by musk, Tesla will operate the Fremont plant all day to improve Model3 capacity. Increasing the number of employees, shifting shifts and paying more overtime to employees cost Tesla a substantial increase in costs. Model3s weekly productivity reaches 2270 in mid April, while Teslas capacity target in two months is 5000 vehicles per week. However, Tesla plans to stop production for another 10 days in the second quarter. The purpose of shutting down production is to solve bottlenecks in production, so as to continue to increase production capacity. Tesla has promised to achieve the goal of 2500 Model3 electric cars by the end of March, but it has not been achieved. It is reported that Tesla has missed production targets many times. We will achieve positive gains in the third and fourth quarters at least in the third and fourth quarters, and we expect to achieve earnings under general accounting standards in the quarter, Tesla said in a shareholder letter. The company said it assumed that Tesla could raise Model3s capacity to 5000 per week and grow to close to break even in the second quarter, and then achieve high growth in the third and fourth quarters. In the end, Model3s growth in capacity and associated profits will help us speed up our goal of achieving sustainable development. Model3 is crucial to Teslas success. The car starts at a price of $35000, but once consumers choose to increase the configuration, the price can rise to more than $50000. Tesla still insists on its long-term gross margin target of 25% for Model3 electric vehicles, but it is expected to decline in the near future, due to the higher cost of local labor in the Tesla factory to automate production. The second quarter, as the company is changing the production model to achieve stability to new car deliveries around the world, the high profit ModelS and ModelX electric vehicle delivery may be flat in the first quarter. The company said its deliveries in the third quarter should pick up. In addition, Tesla expects its battery business revenue to increase, and its gross margin will turn negative in the second half of this year. In the first quarter of March 31st, the loss of Tesla net expanded to a record $784 million 600 thousand, or $4.19 per share. The loss in the same period last year was $397 million 200 thousand, or $2.04 per share. After deducting the basic stock and other expenses, Tesla lost 3.35 US dollars per share, less than US $3.58 a share in the same period last year. Revenue in the first quarter increased from $2 billion 700 million last year to $3 billion 410 million, exceeding analysts expectations of $3 billion 220 million. Due to the delivery of Model3 and the adoption of new accounting standards, Tesla revenue increased 19% over the previous year. Teslas accounting standards change makes it impossible to directly compare Teslas annual earnings and quarterly earnings data, including car sales and gross margins. Under the new accounting standards, the company is required to report the amount of the lease transaction as sales, all the related revenue and the cost of each lease are a one-time record, not a monthly increase in accordance with the lease term. Now they basically list leasing business as direct car sales. You can look at the difference in profit margins between rental revenue and car sales, 36% in 2017 and 21% for car sales, Gordon Johnson (GordonJohnson), an analyst at market research company VerticalGroup, said on Wednesday. so we think the profit margin is going to be hit. (Han Bing) source: NetEase science and technology report editor: Wang Fengzhi _NT2541 Teslas accounting standards change makes it impossible to directly compare Teslas annual earnings and quarterly earnings data, including car sales and gross margins. Under the new accounting standards, the company is required to report the amount of the lease transaction as sales, all the related revenue and the cost of each lease are a one-time record, not a monthly increase in accordance with the lease term. Now they basically list leasing business as direct car sales. You can look at the difference in profit margins between rental revenue and car sales, 36% in 2017 and 21% for car sales, Gordon Johnson (GordonJohnson), an analyst at market research company VerticalGroup, said on Wednesday. so we think the profit margin is going to be hit. (Han ice)