Tesla spent far less cash than expected in the fourth quarter.
One quarter of holding back is probably OK, but if Tesla ends up nursing its cash in 2018, it will just mean that Model 3 depositors - each has put down $1,000, which hasn't been placed in an escrow account but is instead available for Tesla to spend on operations - will have to wait that much longer to get their cars.
He also maintained his goal to produce 1 million vehicles annually by 2020, with plans to make capital investments related to the Model Y SUV toward the end of this year. Indeed, at Tesla stores where the Model 3 is on display, sales of the other EVs have risen, along with demand for Powerwall and solar installations.
Model 3 production issue escalate expenses, offsetting record revenues.
And Musk said the company would turn a profit during 2018. "It's just a matter of time", Musk said on a conference call with analysts.
The pace of the production ramp-up is critical because the company is ripping through cash at a furious pace, and it needs to begin increasing revenue to offset the losses.
Palo Alto, California-based Tesla reported fourth-quarter loss of $675.4 million or $4.01 per share, compared to last year's loss of $121.3 million or $0.78 per share. (NASDAQ:TSLA) news were published by: Marketwatch.com which released: "Tesla exec departs for COO job at Lyft, says CEO Elon Musk" on February 07, 2018, also Businessinsider.com with their article: "Tesla Inc expected to post a loss of $3.12 a share: summary" published on February 07, 2018, Seekingalpha.com published: "How Green Is Tesla?" on February 06, 2018. A "Starman" at the wheel.
Tesla Inc (TSLA) deployed 143 MWh of energy storage products during Q4, representing a 45% year-over-year increase.
Still, Tesla said that its fans remain patient. Trillium Asset Ltd Limited Liability Company invested in 9,322 shares or 0.18% of the stock. Company fiscal year is ending in December and analysts' consensus recommendation is Hold for TSLA and estimated EPS for next quarter is $-2.45.
The tax credit implications McCaffery referred to concern the $2,500 to $7,500 federal credit for electric-vehicle purchases that starts phasing out when a auto maker hits 200,000 vehicles sold domestically, a number Tesla is expected to hit this year. He has repeatedly pledged game-changing automation and new processes. The company has received orders from many major customers, and Musk predicted Wednesday that the company would likely "exceed" the specifications it promised.
Almost two years ago, taking the industry by surprise, Musk proclaimed Tesla would produce 500,000 vehicles in 2018, mostly Model 3s, a six-fold increase over 2016 levels. Combined Model S and Model X deliveries in Q4 grew 10 percent globally from third quarter and 28 percent from past year.
To be sure, that could still happen. The Palo Alto, California-based automaker is struggling to meet production targets for its first mass-market auto, the Model 3 sedan. There's a waiting list of several hundred thousand.
A Model 3 starts at $35,000, which is less than half of the $74,500 starting price for a Model S and the $79,500 starting price for a Model X.
CEO PAY: This will be Musk's first earnings call since last month's announcement of a proposed all-or-nothing pay package for him. McNeill is becoming chief operating officer of ride-hailing app Lyft.