Tesla has reported losses

Tesla's financial results for the first quarter of 2019 were even worse than expected. However, according to Tesla, there are objective reasons for this: the start of export deliveries, loan payments and, last but not least, a reduction in government subsidies.
Tesla again in the red: in the first three months of the year, the company lost 702 million dollars. Cash dropped to $ 2.2 billion: even with 920 million payments on loans it is less than 3.7 billion in the fourth quarter of 2018.
Sales of electric cars decreased by about a third, and the forced price cut caused a drop in revenue from 7.2 to 4.5 billion dollars, although even the most pessimistic analysts predicted at least 5.4 billion. And the margin from sales of the Model 3 sedan, the most popular of the models, dropped to about 20%.
The company explains the situation. First, more than half of the quarter, the company released the Model 3 for newly opened orders from the Old Continent and from China: electric vehicles in the specifications of the North American market returned to the conveyor only at the end of February. Long delivery times inevitably affected sales: “cars on the road” are not formally considered to be sold. And according to Tesla's statistics, “Thirds” in the first three months even 3% more was done than in the fourth quarter of the last year.
Tesla presents the current difficulties as temporary. Before the end of the year, the Shanghai plant of the company should be put into operation, and after that the production of the Tesla Model Y crossover will begin, which, according to the company's forecast, will be more popular than all current models combined! The most expensive electric cars Model S and X are seriously upgraded, and soon the company will start production of new electric cars: the Roadster, while the nameless Pickup and the main tractor Semi.
The company plans to increase the profitability of electric vehicles to an average of 25%, and the annual output will still reach half a million - however, Tesla now also summarizes expectations from the Chinese plant and names an atypical time period: from June 2019 to June 2020.


The information above cannot be considered as an investment advice and past results do not indicate future performance.

**Investors should have experience and understand the risks of losing all the initial investment.
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