Takeaways from Tesla's First Quarter Earnings 2018

Takeaways from Tesla's First Quarter Earnings 2018

Takeaways from Tesla's First Quarter Earnings 2018

But Musk rattled investors during a fractious earnings call yesterday to discuss the results, cutting analysts short and expressing exasperation with "bonehead" questions.

When another analyst asked him about the problems facing production of the highly-anticipated and reasonably priced Model 3 electric vehicle, there was a long pause, followed by, "We're going to go to YouTube".

In case his frustration with Wall Street was not already evident, Musk then invited YouTube host and Tesla enthusiast Gali Russell to take the floor with crowdsourced questions on behalf of retail investors.

Previous reports from Reuters suggested the vehicle manufacturer was targeting a November 2019 release for the electric SUV, but during the company's Q1 2018 earnings call, the CEO said he did not know where the news agency had sourced this information.

Musk is known for his quirks, but investors appeared to be put off. Tesla shares were down almost 5% during after-hours trading, despite posting better-than-expected earnings results.

Moody's said Tesla showed progress in sustaining Model 3 weekly production above 2,000 units for three straight weeks, but that the company is still in an "intense "learn-as-they-go" process in reaching its target of 5,000 a week, a gross margin of 25% and breakeven cash flow".

Tesla "is definitely not in a minimising cost stage", Thibault said.

"The Reuters report is based on nothing", Musk said.

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But hey, maybe it doesn't matter how the president came to his correct conclusion that the dinner should be scuttled altogether. There were many zingers, many pointed at the absent POTUS. "And I don't think they expected that from me".

For the quarter that ended March 31, Tesla lost $4.19 a share, on revenue of $3.41 billion.

And if more manufacturing hangups are in store for Tesla, the company could be headed for a cash crunch.

Tesla also provided an update on its energy storage and renewables business, noting that energy storage deployments grew 161 per cent in the first quarter of the year compared to the previous quarter, to hit 373MWh. Analysts polled by FactSet expected an adjusted loss of $3.54 per share.

The company said it ended the quarter with $3.2 billion in cash after spending $655.7 million in quarterly capital expenses.

On Tuesday, he posted a video titled: "Crowdsourcing A Question For The Tesla Earnings Call!"

Net reservations, including configured orders that had not been delivered, "continued to exceed 450,000" at the end of the first quarter, the company said.

The lack of Model 3 revenue has exacerbated Tesla's cash burn as the company continues to spend on its assembly line and prepares for new investments on multiple projects in the pipeline, such as the Model Y crossover and its Gigafactory.

Tesla also confirmed it does not know where it will produce the Model Y yet, citing it's Fremont, California plant is "packed to the gills".

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