Tesla, heavy losses and sales down by 31%

Accounts in the red in the first quarter of 2019 for the Palo Alto company. Only 63,000 cars sold. The return to profit is expected in the third quarter of 2019

The extent of Tesla’s losses between January and March 2019 surprised even financial analysts who were already expecting a negative figure. In fact, after two consecutive quarters of profit, the electric car manufacturer recorded a loss of 702.1 million dollars, a figure that includes 188 million in one-off charges. Red is more than double the forecasts that preceded the announcement. The loss per share went up to $ 4.10 from $ 4.19 in the first three months of 2018. Net of extraordinary items, the loss was $ 2.9 compared to $ 3.35 a year earlier. Analysts had expected a gap of only $ 1.15 per share. Also in the first quarter, revenues were 4.54 billion. However, the program to finance the arrival of the new crossover, the Model Y, expected in Europe in 2021, must be taken into account. But above all, what appears to be a change of course by Elon Musk, CEO of the car manufacturer, could count. on a possible capital increase, according to his words during a conference call: “Tesla is currently a much more efficient organization from an operational point of view than a year ago. We’ve made incredible improvements on everything. So I think at this point the idea of ​​a capital increase makes sense ”.

Electric Tesla Model 3, the prices of the Standard Range Pluscause

The fact remains that from January to March Tesla sold 63,000 cars, a particularly low figure, down 31% compared to the last quarter of 2018. However, according to Musk, registrations of Model S, X and 3 will return to normal, in the second quarter of the year. “My impression – said Musk – that now the demand is quite strong”. The 47-year-old founder of the carmaker also predicted a second quarter in the red with a return to black, or profit, in the third quarter. But how was such a heavy deficit possible from January to March? The company explained that due to “unforeseen challenges” it was only able to deliver half of the vehicles ordered: in particular, there were delays in deliveries of the Model 3 in Europe. At the same time, shipments of new cars to the Old Continent and China have increased. This will increase deliveries and financial income in the current quarter.

forecasts

A few days ago Musk had launched the challenge to Uber and Lyft on autonomous driving by predicting by 2020 one million self-driving cars on the road that could be used by owners as real robo-taxis. On the other hand, as regards the 2019 production forecast, the numbers range from 360 to 400 thousand vehicles. The figure could reach half a million cars if the new Chinese Tesla factory in Shanghai is up and running.

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Tesla, heavy losses and sales down by 31%

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