Tesla lost a record $785 million in the first quarter and set up a factory in China

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 Tesla lost a record $785 million in the first quarter and set up a factory in China


Local time on May 2nd, Tesla announced the first quarter of 2018 earnings. The companys revenue increased, but the deficit continued to expand, setting a record of $785 million in quarterly losses. At the conference call that day, Tesla founder and CEO ElonMusk also mentioned that a super battery factory would be built in China and included in the car production. In response to huge losses, Tesla says it is expected to make profits in the second half of 2018, and he also reiterates that Model3s output will reach the target of 5000 per week by the second quarter of 2018. The Wall Street Journal reported in May 2nd that in the first quarter of 2018, Tesla burned more money than analysts expected, and would face more pressure to raise money if Tesla continued to strive to increase the production of Model3 cars. The loss continued to expand, setting a record of $785 million According to the Wall Street journal, Teslas free cash flow was negative at $1 billion in the first quarter of 2018. In the fourth quarter of 2017, the value was negative 227 million US dollars, which may cause the risk of payment delay and consumer deposit. The earnings report also issued a loss of $710 million for the common shareholders of the company, which is also the fifth consecutive quarterly loss for Tesla. According to CNBC, the net loss of Tesla in the quarter expanded to a record $785 million, a loss of $4.19 per share, a loss of about 1 times a year ago. Teslas net loss in 2017 was $397 million, or $2.04 per share. After deducting stock and other items, Teslas loss per share was $3.35, less than the loss of $3.58 a year ago. Teslas free cash flow quarterly value chart, Q1 in 2018, was negative 1 billion US dollars. It is expected that profits will be realized in the second half of 2018, but there is a premise. Teslas revenue increased to $3 billion 410 million in the quarter, up from $2 billion 700 million a year ago, exceeding analysts expectations of $3 billion 220 million. In the Wall Street journal, Tesla said it said it plans to reduce capital investment this year, and as productivity increases, it hopes to reach positive cash flow in the second half of 2018 and achieve profit in the third and fourth quarters. However, it is worth noting that Teslas earnings expectations are based on the expected output of Model3. According to CNBC5 3, according to a letter made by Tesla shareholders, it is assumed that Tesla can increase Model3 production to 5000 units per week, and Model3 s gross interest rate is close to break even in the second quarter, then the profit is highly possible in the third and fourth quarter, ultimately, the growth of Model3 production and it brings it. The profit will help us speed up the transition to sustainable energy. Speeding up the production of Model3 requires continuous burning Model3s capacity is the key to Teslas financial position. But if Tesla wants to continue to increase the output of its Model3 models, it must continue to raise more capital. In a quarterly report, the weekly output of Model3 reached 2270 units in mid April, and the target of 5000 units produced by the end of the second quarter of 2018 was unchanged. So there is still two months to go before the goal is achieved. CNBC reported that, in order to increase the production of Model3, Tesla continued to cash in the Model3 Fremont factory in California and the super battery factory 1 (Gigafactory1). According to an internal mail sent by musk to employees, the Fremont factory will run all day, adding employees, shifts, and paying more overtime to employees, all of which increase the cost of Tesla. In addition, Tesla also plans to shut down for 10 days in the second quarter. The stoppage is to repair bottlenecks in production and continue to increase production. Tesla Model3 car has been produced since July 2017, but the delayed production due to battery problems has prevented Model3 from delivering it to consumers on time. Reuters reported on March that Teslas target of mass production for Model3 was 2500 vehicles produced by the end of March and 5000 vehicles by the end of June. This goal has been far below the target set by the company earlier than the end of 2017 for 5000 weeks and 10000 vehicles by the end of 2018. Model3, originally priced at $35000, is Teslas high hopes for a cheap electric vehicle. But the low price of Model3 has risen to $49000 in the US, and will not be available until late 2018. In the May 2nd telephone conference in Chinas battery factory, Mask mentioned the outside concerns of the factory of the TSI high-end SUV sports car, ModelY, and the plan for the Chinese battery factory. Addressing the factory location of ModelY, Mask said in a conference call that decisions will be made before the fourth quarter of this year. He added, we will also decide on the address of a super battery factory in China. All future battery factories will be integrated into vehicle production. Teslas share price has fallen by 3.3% since 2018. As of May 2nd, the stock price rose 0.41%, but after the fall 4.55%. The source of this article: surging news editor: Wang Zheng _NN7526 Model3, originally priced at $35000, is Teslas high hopes for a cheap electric vehicle. But the low price of Model3 has risen to $49000 in the US, and will not be available until late 2018. Future China battery factory In the May 2nd conference call, Mask mentioned the outside worlds attention to the factory of the TSI high-end SUV sports car, ModelY, and the plan for the Chinese battery factory. Addressing the factory location of ModelY, Mask said in a conference call that decisions will be made before the fourth quarter of this year. He added, we will also decide on the address of a super battery factory in China. All future battery factories will be integrated into vehicle production. Teslas share price has fallen by 3.3% since 2018. As of May 2nd, the stock price rose 0.41%, but after the fall 4.55%.