February 18, 2019

Tesla's losses grow on Model 3 delays

10 February 2018, 04:38 | Dale Webster

Tesla's losses grow on Model 3 delays

'You can tell it's real because it looks so fake:' From perfectly placed cameras to the color-enhancing effects of space

Demand for the most affordable Tesla was huge, with hundreds of thousands of people putting down a $1,000 deposit to be among the first to own the electric auto.

A day after launching one of its cars into space, Tesla has moved to ease concerns on earth over production delays for its Model 3, the key to future growth for the star electric carmaker. It just announced quarterly losses of $675 million. SpaceX company has been preparing the launch for 7 years.

Enter the Model 3, which starts at $35,000 and has received a "strong response from millennials", according to Anand.

"And so it was really, I think, on balance, a phenomenal year", Musk said in remarks made on the call.

Musk admitted this week: "Module production is the limiting factor in Model 3 production, which is ironic because that should be the thing we're best at".

The company has reiterated to reach a production of 5,000 Model per week by the end of the 2nd quarter and wants to make 2,500 Model 3 by the end of the first quarter.

With few surprises in the fourth-quarter report and an outlook by Tesla of business-as-usual, analysts maintained price targets and ratings on Tesla.

Musk wrote " Last pic of Starman in Roadster enroute to Mars Orbit and then the Asteroid Belt". But it fell woefully short on the Model 3, which went into production in July.

Tesla is expected to begin production of its Semi in 2019, having already opened up reservations for interested companies to get in line. At one point Tesla had more than 500,000 customers on a waiting list for the Model 3. If Tesla doesn't meet those goals, Musk won't get paid. The proposal must still be approved by Tesla's shareholders, who are scheduled to vote in late March. That's just 3% of Musk's original plan of rolling out 20,000 Model 3s per month by the end of 2017. All that costs money, which Tesla is burning through at a fast clip. "We expect energy generation and storage gross margin to improve significantly in 2018 as we enter the year with a backlog of higher-margin commercial solar projects and a more profitable energy storage business due to manufacturing efficiencies from scaling". The report also notes the Roadster on board the rocket is Musk's own auto.

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