Tesla reports biggest-ever quarterly loss

Above Elon Musk stands in front of a Model S rolling off the production line at Tesla’s factory

Above Elon Musk stands in front of a Model S rolling off the production line at Tesla’s factory

Given that Tesla's first quarter ends in less than two months, management must have a high level of confidence in this target. In the final three months of the year, Tesla delivered just 1,550 Model 3s. For the year, the company reported nearly $12 billion in revenue.

While Tesla's true believers love these stunts, some analysts are questioning whether Musk should be spending more time fixing Tesla's woes.

The company (naturally) contends that all losses are temporary.

CASH BURN: Tesla has lofty targets, including building a plant in China and launching a small SUV in 2020.

The reason for this push-back is reported to be because of the losses that the company has been facing over the last few quarters.

Like over 400,000 other people, I have a Tesla (NASDAQ: TSLA) Model 3 reservation. Electrek reports that Tesla is now focusing on Model 3 deliveries in Canada sooner than expected, which could allow the company to continue ramping deliveries but in an adjacent geographical market - deliveries that wouldn't count toward the 200,000 figure. But investors are concerned about the Model 3 because it was supposed to be the mass-market auto that could fly quickly off the assembly line and make money for the cash-burning company.

Model 3. Image source: Tesla. Less wiring means greater automation in the production process.

But by the end of Q4, deliveries seemed only marginally better.


"The competitive strength of Tesla long term is not going to be the vehicle (s), it's going to be the factory, we're going to productise the factory", he said.

This announcement of heavy loss came a day after the after the big success for his SpaceX company, also owned by the Elon Musk. However, Elon Musk said previous year that the company would develop a new platform for Model Y. Musk later went back to the original plan to bring Model Y to market by "2019 or 2020". The information was posted in Tesla's financial results and shareholder letter. The company revealed that it had completed "an extensive overhaul of the underlying architecture of our software" enabling "a step-change improvement in the collection and analysis of data and fundamentally enhanced its machine learning capabilities".

It is also planning an autonomous coast-to-coast drive to "showcase a major leap forward for our self-driving technology", according to Musk. "It's just a question of disassembly, transport and reassembly", he said on a conference call Wednesday. Even at its lower price point, the vehicle has that Tesla DNA, zippy acceleration, and more tech than you probably need, wrapped up into one sleek touchscreen.

Tesla's market cap is now $56.1 billion, up 35 percent from $41.6 billion from a year ago.

In addition, Tesla is targeting to "at least triple" its energy storage products sales this year. And in January, Tesla revised its projections yet again, stating that it now intends to hit 5,000 per week by mid-year.

"I don't want to jump the gun on those, but I think we've got a good plan". "... You can opt to have your auto enter a shared fleet or not, and then Tesla can also operate its own fleet in places where there are not enough people sharing their vehicles, so that's a pretty significant opportunity". The company also sees 100,000 unit annual production for the new electric semi truck, and may be able to exceed performance specifications given a year ago. "The competitive strength of Tesla is not going to be the vehicle, it's going to be the factory", Musk said.

Tesla now only offers First Production configurations, which includes a long-range battery and premium upgrades.

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