Company value dives after entrepreneur has terse exchange over "boring" questions relating to company finances in media conference call

Tesla posted a record loss of £523 million in the first three months of 2018 – but company chief Elon Musk insists the firm is on course to become profitable by the end of the year.

The American firm’s first quarter loss was more than double the £243m the firm lost in the same period a year ago. Tesla generated £2.5bn in revenue between January and March – a year-on-year rise of 26% – but continued to fall below its own production targets for the Model 3.

Tesla analysis: Will the fairytale end this year?

Tesla produced 2270 Model 3s per week in April, below its revised target of 2500. The firm had initially planned to produce 5000 cars a week by the end of 2017, but has hit trouble scaling up production, and has suspended work in its California factory on several occasions in a bid to cure “production bottlenecks".

Tesla: Model 3 production growth 'rivals that of Model T' (March 2018)

In an email to staff, Musk said Tesla was ready to be profitable, if it reduced capital expenditure and hit its target of producing 5000 models a week by the end of June.

Shares in Tesla Inc remained stable following the announcement of the results, but then fell around five per cent, according to Reuters - wiping around £1.47bn from the value of the company – during a media conference call given by Musk.

When asked what percentage of customers who had reserved a Model 3 had configured options for their cars – a signal of how much profit the firm could make on each vehicle – Musk responded: “These questions are so dry. They’re killing me.” 

Musk also cut off a question about capital expenditure, stating that: “Boring, bonehead questions are not cool.”

Musk then took a series of questions from the host of a YouTube channel. During that exchange, Musk reiterated that production on Tesla’s forthcoming Model Y crossover would begin in early 2020, and claimed the firm’s autonomous ride-sharing vehicle could be fully developed by late 2019.

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Tesla analysis: Will the fairytale end this year?

Tesla: Model 3 production growth 'rivals that of Model T' (March 2018)

Tesla Model Y production planned to begin in November 2019

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17

3 May 2018

Obviously can't carry on this way, if it does there'll be a queue of companies ready to buy.

What does work in their favour, which is why the share price is fairly static, is if they can manage to  bang out 15,000 model 3's a month at $40,000 then that's a gross income of $600 million a month for just one it's 3 cars.

Is the statement "Tesla produced 2270 Model 3s per week in April" right? They made just shy of 4,000 over March. If so production is getting there! 

 

typos1 - Just can’t respect opinion

3 May 2018

So questions about Tesla's cashflow and cash balances are "bonehead"?

Musk has pulled off a Herculean task in making electric cars a viable alternative to ICE cars and should be lauded for that. It's just a shame that his hubris in deciding that Tesla can be a volume manufacturer is likely to lead to a cash crisis before the end of the year. His current behaviour makes it seem like he's on the verge of a nervous breakdown.

3 May 2018

He needs to understand that confidence is not the same thing as rudeness and arrogance.

 

 

3 May 2018

All well and good but orders for the 3 are being cancelled and the models that make money are coming under attack from a range of car companies that know how to set up production and build cars which are reliable and polished.

in June Jaguar start the attack on Tesla with the I Pace. Tesla are running out of time and banking and good will and their reputation as an innovator.

Elon would be better if running a joint venture with the likes of Jaguar to share floor pans and tech now as their costs relative to their income will go up as sales drop off from declining market share.

3 May 2018

Just wondering where you got your info. from, and, how many model 3 orders have been cancelled. p.s. They still have over 450,000 orders to fill

Just out of interest the Model 3 is now outselling the 3 series, A4 and will soon be outselling the C class

typos1 - Just can’t respect opinion

3 May 2018
xxxx wrote:

Just out of interest the Model 3 is now outselling the 3 series, A4 and will soon be outselling the C class

What? Where on earth is Tesla`s Model 3 outselling the BMW 3 series, Audi A4 (and by your will) the Mercedes-Benz C class? In the US? So what? There`s a President there too, Mr. Trump. Is that a role model for the rest of the world?

When Daimler starts to churn the next C class from Mexico, I will doubt Tesla Model 3 will outsell it... if they will still be in business, that is...

Oh man, this Tesla mania is blinding good people, sure it is...

3 May 2018
coolboy wrote:

xxxx wrote:

Just out of interest the Model 3 is now outselling the 3 series, A4 and will soon be outselling the C class

What? Where on earth is Tesla`s Model 3 outselling the BMW 3 series, Audi A4 (and by your will) the Mercedes-Benz C class? In the US? So what? There`s a President there too, Mr. Trump. Is that a role model for the rest of the world?

When Daimler starts to churn the next C class from Mexico, I will doubt Tesla Model 3 will outsell it... if they will still be in business, that is...

Oh man, this Tesla mania is blinding good people, sure it is...

It's outselling them in the US, the only market where they're all available.

typos1 - Just can’t respect opinion

3 May 2018

 

It's outselling them in the US, the only market where they're all available.

[/quote]

Only month published is March and Tesla sold 3800 Model 3 which is less than any of its competitors but April production is up and therefore maybe sales will ben higher. Revised C class coming and new 3 series coming, electric versions of both too, gonna be close!

Two problems remain. Many Teslas are leased so if quality expectations aren't met payments stop and US courts will protect the consumer if the car is a lemon. Secondly, it would be a stretch not to expect quality issues with the forced productivity goals.

I wish Elon luck, but its still very uphill for the next few miles.

3 May 2018

The really worrying thing for Tesla is that losses are increasing with production - which strongly suggests that they are making a loss on each car made.

The concept of profit seems to be an anathema to Mr Musk.

 

3 May 2018

The problem with one man's dream is its grandiosity.

The US doesn't have a reputation for quality control or manufacturing finesse.

If Tesla keeps going the way it does, the future may be some sort of deal with Toyota with Lexus taking over the manufacturing process.

Tesla should have concentrated on R & D

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