Published: Thu, May 03, 2018
Markets | By Josh Butler

Tesla posts new record quarterly loss - US$784.6mil

Tesla posts new record quarterly loss - US$784.6mil

Tesla customers are spending $5,000 on the promise of full self-driving. He directed the moderator to open up the call to a YouTube user who was invited by Musk to ask crowdsourced questions from retail investors. Musk last described it as "a combination of Uber or Lyft and Airbnb".

"This is the obvious thing that's going to happen", Musk said. To be precise, my mistake. Tesla inherited a ton of toxic debt during its acquisition of SolarCity Corp, meaning that it shouldn't take on more loans, particularly in this rising interest rate environment.

But Model 3 production still isn't near the level of 5,000 per week that Musk promised a year ago. It's a 15-year-old company with nearly 40,000 employees, some of whom are trying to unionize.

The company could always issue more TSLA stock, but doing so would dilute the value of existing shares, thus irritating investors who've stuck with the company through crisis after crisis. Tesla's board is recommending that shareholders vote against the proposal.

Tesla, Inc designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally. Director Steve Jurvetson has been on leave since November. After producing a string of luxury cars-the Roadster (2008), the Model S sedan (2012) and the Model X SUV (2015)-Tesla is entering the big leagues with a ubiquitous electric auto that can offer average drivers an alternative to the internal combustion engine.

The loss in this year's first quarter is the latest sign of trouble for the company. Such declaration came on the backdrop of Model 3 production missing the budgeted target. But Tesla is a global brand, and China is key to its global ambitions.

This many EVs would be great news had Tesla not promised in mid-2017 that the company would be building and delivering 20,000-plus Model 3's per month by December of 2017. Joe Spak of RBC Capital Markets followed with an inquiry about how many Model 3 reservation holders were actually taking the step to configure their auto when invited to do so.

Madrid wary of Champions League home setbacks in Bayern visit
But I've no doubt Bayern will come here without any complex whatsoever, allowing them to put in a big performance. Their last away win against Real was in May 2001, in the Champions League semis (1-0, goal by Giovane Elber).

When does the company expect to hit the 200,000 mark in domestic vehicle sales? Once the company reaches that milestone, they hope to reach a production rate of 10,000 units per week. Tesla stated that the vehicle's assembly line consists of 70% less steps compared to traditional assembly lines.

When Tesla's crash comes, it will be ugly- and Ol' Musky's fans today will be the Tucker conspiracy theorists of tomorrow.

The key to raising cash to cover expenses is production of the Model 3 mass-market electric auto, which starts at $35,000 but can easily top $50,000 with options.

As bad as that would be, it's probably better than issuing more debt.

Also on the call, Musk announced that Tesla will undergo a corporate restructuring by the end of May.

The Model 3 is priced to start at about $35,000, about half the cost of the least expensive Model S luxury sedan that Tesla also produces at its factory in Fremont, Calif.

The Model Y will be built at a new factory, with the announcement of exactly where the factory will be to be made no later than Q4 of this year.

Like this: