Enlarge / Elon Musk.DAVID MCNEW/AFP/Getty Images

After two back-to-back quarters of profits, Tesla lost $702 million in the first quarter of 2019, the company announced on Wednesday.

Tesla has been expected to post a loss for the quarter ever since the company admitted earlier his month that it had suffered a big drop in Model S and Model X deliveries. But the quarter's losses were larger than many Wall Street analysts expected.

Markets weren't fazed by the negative earnings news. After initially falling about 2 percent, Tesla's stock price bounced back and is now about where it was when the earnings numbers were released.

Cash on hand fell from $3.7 billion at the start of the year to $2.2 billion at the end of March. However, this isn't as grim as it might look because this primarily reflects Tesla paying off a $920 million loan that came due in March.

Total revenue for the quarter was $4.5 billion. That was a big decline from the fourth quarter of 2018 and was below analyst expectations. But it still represented a significant increase from the Q1 2018 figure of $3.4 billion.

Both Tesla's declining cash and its weak revenue figure reflect the fact that Tesla had a lot of cars in transit to customers at the end of the quarter. Many of those cars were part of a big push to sell the Model 3 in Europe. Most of those sales will conclude early in the current quarter providing a boost to the second quarter's finaRead More – Source

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Ars Technica

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