Tesla report showed higher losses and revenue than investors expected.
The new financial report of Tesla Inc, announced recently, became both good and bad news for investors at the same time. In addition, Ilon Musk, speaking to investors, looked a little depressed. He himself said that he was “a little tired,” because he was simply working in a mad mode.
A report published by the company showed a higher level of losses incurred by Tesla. This indicator surprised investors because they were expecting another . Nevertheless, the company was able to achieve the goal of 5000 produced by Tesla Model 3 per week, which was also expected by a few.
In the past reporting period, the company indicated a loss of $ 785 million. In this quarter, the loss was about $ 742 million, which is not so very different from the previous financial period. However, the company's revenues were $ 4 billion, compared with the $ 3.4 billion shown earlier.
As for the cash available for operations, the company has approximately $ 2.2 billion of them, with $ 942 million of them being on customer deposits. In principle, the company can handle all these amounts without problems. But if one of the clients wants to refuse to buy an electric car, the money will become inaccessible to Tesla. Accordingly, the more potential customers refuse to purchase a vehicle, the less money Tesla has at its disposal.
Tesla accounts payable amounted to about $ 3 billion, which investors may not like. Nevertheless, Musk argues that the money is enough to continue the work, and he is confident that in the near future the company will bring more profit. “Do we not have money in bank accounts? The answer is “no.” We have no shortage of anything, ”said Ilon Musk. He also said that he was confident that the company would be able to achieve profitability in the third and fourth quarters of this year.
“There must be some kind of force majeure, like an earthquake or a global crisis, so that we do not reach our goal,” the entrepreneur continued.
Whatever it was, but investors, if I may say so, warm the news about reaching the planned mark of the volume of produced electric cars. Last week, according to the company's report, it was able to produce more than 7,000 vehicles. These are models S, X and 3. They are already shipped to users. Of these 7 thousand five - Tesla Model 3 and the remaining 2 - Model S and X.
Now the company hopes to be able to produce 6 thousand Model 3 every week, in order to finally start delivering orders to customers who are interested in the new electric car model . However, as previously reported, now more expensive modifications are being made, and the very basic model, priced at $ 35,000, will be made later.
The problem is that the electric car of the basic configuration practically does not make the company a profit, and since Tesla now needs to increase the flow of finances going to the company's account, production is suspended in favor of other models and configurations. For example, the older configuration of the Tesla Model 3 costs the buyer $ 79,000, which is more than twice as expensive as the “base”.
At the same time, the “luxury version” is selling very well. Half of the Model 3 orders are in a twin-engine all-wheel drive configuration. This is probably why Musk associates relied on "luxury". After all, 50% of orders is quite a lot, despite the fact that the remaining 50% can wait.
Mask told about the Chinese "Gigafabrika". According to him, it will be able to produce hundreds of thousands of electric vehicles per year, and the cost of its creation will cost $ 2 billion, and most of this amount is borrowed funds from local banks. In China, a battery module, internal structural elements will be produced, the body shop and paint shop will be located here.
As for the autopilot, it will be improved. The company is going to replace third-party chips with chips of its own design. The company is currently working to improve the security of the autopilot system. After all the work is completed, the electric cars will be tested on a cross-continental journey from coast to coast (this is about the USA).
Production is accelerating, and the speed of production of batteries is important. According to Mask, the production of an energy system for the home and industry Powerwall had to be limited in favor of the production of batteries for electric vehicles.