What We Learned From The Latest Tesla Inc (TSLA) Earnings Call

New Autopilot features are demonstrated in a Tesla Model S during a Tesla event in Palo Alto California

New Autopilot features are demonstrated in a Tesla Model S during a Tesla event in Palo Alto California

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.

Tesla's biggest-ever quarterly loss, however, was not as wide as analysts were expecting, and revenue also just topped targets. The company told analysts in a briefing call that it is set to make some capital investments towards the end of the year towards the next EV in the series, the Model Y.

"Automation fixes being done in Germany suggest that Model 3 production targets are at risk and that investors will not be surprised by such delays, which we expect will allow TSLA to push out capex payments, reducing near-term cash pressure", analyst Colin Rusch said in a note to clients. Still, Musk said he is "cautiously optimistic" that Tesla will be profitable this year. However, Tesla reported that combined orders for Model S and Model X "grew significantly" in 2017 as compared to the year prior. Difficulties in battery production coupled with glitches in the Model 3 assembly process have slowed down the output.

Tesla burned through $3.4 billion previous year, and $787 million in the fourth quarter alone, and said capital spending in 2018 would be "slightly more" than in 2017 due to expanded production at its Fremont factory and Nevada Gigafactory.


Tesla shares swung between gains and losses in NY on Thursday, trading down 4.2 percent to $330.65 at 10:55 a.m. Shares fell as much as 4.3 percent in intraday trading - the most since November 29 - after earlier rising as much as 1 percent. In Q4, Tesla should have been building thousands of Model 3 mass-market vehicles per week. It may eventually aim for Model Y capacity of 1 million, as it designs the Model Y factory to avoid the issues around Model 3. The company's cash balance barely budged last quarter even as it struggled to make Model 3 sedans. Soroban Capital Partners Lp bought 1.00 million shares as the company's stock declined 6.06% while stock markets rallied.

The niche carmaker has made inroads among luxury auto buyers with the advanced technology and innovative design in its Model S sedan and Model X SUV. Once at that production rate, Tesla could begin to generate sustained positive operating income "at some point in 2018", Musk said. But Musk said Wednesday he has no plans to step aside as CEO. But he also said the company had learned many invaluable lessons from the troubles, and made major strides in efficiencies along the production lines. S. automaker, just behind, which had net revenue of $145.6 billion in 2017. Symmetry Peak Management Llc who had been investing in Tesla Inc (Call) for a number of months, seems to be bullish on the $58.26B market cap company. Elon Musk made history by launching Tesla Roadster on top of Space X Falcon Heavy spacecraft which cruised through the space. But some analysts have questioned whether his myriad of other interests, from space exploration to tunnel boring technology, are a distraction at a critical time within Tesla.

Tesla lost $1.96 billion for the full year, a record for the company and almost three times its loss of $675 million in 2016. Additionally, the company's revenue was nearly US$3.3 billion for the Q4 2017 period, while it earned nearly US$12 billion for the whole of 2017.

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