German Automakers Are Gunning For Tesla Inc (TSLA)

German Automakers Are Gunning For Tesla Inc (TSLA)

Shares were down over 5% in after-hours trading as of this writing. As noted in Tesla's Q1 Earnings Report, the company is now producing 2,270 Model 3's per week, less than half of the 5,000/week goal they set for the end of June. He then allowed multiple questions from a person via YouTube. At the end of the period, Tesla had $2.7 billion in cash, $700 million less than the start of the quarter.

But Model 3 production still isn't near the level of 5,000 per week that Musk promised past year. At this point, if efficiency is just that good, Tesla should maybe consider reducing the size of the pack and increasing the load capacity, which can also have a great impact on the economics of trucking.

But the robot did a poor job of handling the material, which Musk described as "fluff", so it made more sense for a human to take on that task.

Strong sales of the auto are key to generating cash to pay operating expenses, fund capital spending and make upcoming debt payments.

Tesla said it was able to make more than 2,000 Model 3 cars a week during three weeks in April, a big boost from past production levels.

Model 3 production surpassed 2,000 cars per week only in the past month or so, which is far behind Musk's initial timeline.

When Musk first unveiled the Model 3 in March 2016, he described it as a $35,000 auto - before options or incentives.

"The morning after the Roadster was announced, I put a deposit down", said Bruce Sidlinger, a 60-year-old aerospace engineer who resides in Flagstaff, Arizona. "We're going to scrub the barnacles on that front".

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"Ultimately, the growth of Model 3 and the profit associated with it will help us accelerate the transition to sustainable energy even faster", the company buoyantly predicted.

The raw numbers reflected Tesla's efforts to ramp up production over the quarter: Net loss widened to a record $784.6 million for the quarter, but revenue rose to $3.41 billion, outdoing analysts' estimates. Goldman Sachs decreased their target price on shares of Tesla from $205.00 to $195.00 and set a "sell" rating on the stock in a research report on Tuesday, April 10th.

For the first quarter, Kallo is scaling down his expectations to mirror Tesla's actual deliveries for the quarter as well as reducing expected margins on back of the Model 3's lesser absorption.

Tesla did not break out a cash flow calculation as it has in previous quarters. That's welcome news for Tesla, but the Palo Alto, Calif. -based company's executives have yet to secure a deal to open an assembly plant in China, despite negotiating with Shanghai's government for more than a year.

Tesla shares were up less than a per cent to US$303 in after-market trades that followed release of the earnings figures. It is to be noted that in the last quarter, the company missed the target of Model 3 by 500 units.

It's been quite a year for Tesla Inc (NASDAQ:TSLA) and Tesla stock, bouncing between a 52-week high of $389.61 and a $244.59 low, a massive $140 spread.

Autopilot: what's the status in the development of the company's semi-autonomous driving product. If that were happening, we'd see signs of it in a plunging stock price.

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