In March, Moody's Investors Service lowered Tesla's credit rating over concerns about the slow pace of Model 3 production and warned that the company could face a cash crunch late in the year without an infusion of capital. The company had revenue of $3.29 billion during the quarter, compared to the consensus estimate of $3.26 billion.
Tesla said it produced 2,270 Model 3s per week in the last week of April, up from 2,250 in the second week of the month.
"Sorry", Musk said, "these questions are so dry". If Tesla can indeed pump out five thousand Model 3's a week, which Elon Musk will make sure the public is aware of if/when they accomplish this, then there really shouldn't be anything stopping them from finally turning around and profiting.
He then took several questions in a row about plans for a self-driving auto network and other long-term projects from the host of a YouTube channel focused on investing, praising the questions as not boring. The Model 3, a fully electric five-seat saloon designed for the mass market, costs $35,000.
Management cut 2018 capex projections from more than $3.4 billion to below $3 billion.
Tesla has been pumping a vast amount of money into increasing capacity at its factories recently, having been free cash flow negative for the past five quarters.More news: Aztecs' Rashaad Penny drafted by Seahawks in first round of NFL Draft
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Sales of batteries and solar panels clocked in at $410 million, a 92 percent year-over-year jump from the $214 million reported last year. Tesla said reservations "remained stable" through the first quarter.
The niche carmaker, which two years ago vowed to build 500,000 vehicles annually in 2018, has attracted legions of fans for its advanced technology and design.
The manufacturing hangups have investors wondering if Tesla is headed for a cash crunch.
Tesla said that it expects to achieve profitability in the second half of 2018, as long as it executes "according to our plans". Through the vast majority of Model 3 production, including in body welding, general assembly, inverter and drive unit production, our automation effort has been very successful. Tesla disclosed this year they are averaging an additional 1,800 pre-orders a day, and it's important to remember this basically guarantees revenue from Model 3 sales.
Excluding items, Tesla had a loss of $3.35 per share.
Equities research analysts expect that Tesla, Inc. At the end of previous year the company had a total of $9.5 billion in long-term debt. Tesla offers lease deals for the Model S and Model X: indeed, you can get behind the wheel of an entry-level Model S 75D for around $900 per month, assuming a three year contract and a $5,000 downpayment.