Tesla posts another loss as the beleaguered automaker seeks to increase production

02 August, 2018, 16:33 | Author: Kathy Ellis
  • 2019 Jaguar I Pace S

American carmaker Tesla has reported its biggest quarterly loss yet of 717-and-a-half million dollars. In the past year, Tesla has come under scrutiny for its factory conditions, auto production, treatment of employees, odd cost cutting measures, and CEO Elon Musk's fitful interactions with critics.

Tesla shares were up 5 percent at $316.45 in after-market trading on Wednesday.

In a statement released after the markets closed Wednesday, Tesla said it expects to produce between 50,000 and 55,000 Model 3s in the third quarter, an increase of at least 75 per cent from the first quarter. The compay reported an adjusted net loss of $3.06 per share, more than analysts expected. For the quarter gone by, Tesla a few weeks ago noted that Model S, Model X, and Model 3 deliveries respectively checked in at 10,930, 11,370, and 18,400 units for the quarter. The call triggered a stock sell-off and raised questions about Mr Musk's behaviour.

Tesla's second-quarter losses of $743 million were lower than analysts' estimates, of about $900 million.

Tesla also faces broader challenges that could make its cars more hard to sell.

Real Madrid 'end Hazard interest' after Chelsea demand world-record fee
Willian's role at Real Madrid would be one of support from the bench, offering pace and directness in the latter stages of games. And while the European champions are big admirers of the Belgian, new boss Julen Lopetegui feels he already has enough options.

Just as the flare-up contributed to a smackdown in Tesla's stock in May, Musk's contrite tone this time around contributed to today's real-time rise in prices. Capital expenditure is expected to fall $900m to about $2.5bn this year and Tesla had $2.2bn in cash and equivalents.

That loss is close to double the $336.4 million ($454.4 million) it lost during the first quarter of 2018, although total revenue rose from US$2.79 to US$4.0 billion.

Bannon said that when he joined Tesla, employees considered many options, including Nvidia graphics cards, and said they talked with people at Arm, whose technology is used in chips from Qualcomm (QCOM) and other companies. Musk also says that Pole Position could be linked to the car's actual steering wheel, which would certainly make for an interesting addition.

Had it delivered the vehicle in June, the subsidy would have lapsed a quarter earlier, a strategic move applauded by Ross Gerber, chief executive of Gerber Kawasaki Wealth and Investment Management, which holds Tesla shares. Tesla said in its shareholder letter that the Model 3's gross margin "turned slightly positive" in Q2, and the boost in production could move that figure up to 15 percent by quarter's end.

Tesla also said it's working on a new version of its Autopilot semi-autonomous software that will have greater safety features. Tesla has never posted an annual profit and has only had two profitable quarters since going public in 2010.



Trump admin to challenge China in its own backyard
Pompeo said the United States has signed a $350 million investment compact with Mongolia to develop new water sources. Pompeo called for the region to remain "free and open", an implicit challenge to China's approach to its neighbors.

Manchester United's Anthony Martial returning to training after risking £180,000 fine
I know that these guys are awesome professionals and I know that they give everything for the club, for the prestige of the club. So, I think we have fantastic players, but, of course, always managers want to improve their teams, but it's not my business.

Why Prince Harry and Meghan Markle Are Disregarding These Royal Rules
As Meghan has become an official royal, she often has to wear a hat or headpiece in public. It's safe to say that she knows what it's like to have a "difficult" family member.

Trump and top European leader agree to work toward zero tariffs
General Motors had slashed its outlook, and shares of Ford and auto parts companies had fallen. Juncker told Trump during a meeting in the Oval Office that the trade talks are important.

Dead And 7 Injured In New Orleans Shooting; Killers At Large
New Orleans police are now on the hunt for two suspects who opened fired on a crowd of people miles from the French Quarter. NOPD said Sunday afternoon that one of the men killed was found shot multiple times outside shops in the 3400 block of S.

Mainz Confirm Yoshinori Muto Is Newcastle United Bound
Fulham reportedly have a £20m bid for Serbia forward Aleksandar Mitrovic accepted by Newcastle United . We did this business with Muto because we needed to do something more".

Malaysia Airlines Flight 370 investigation findings inconclusive, highlights shortcomings of response
The investigation had been described as a "final report ", but in his opening remarks Kok said, "This is not a final report". Officials said this is still not a final accounting because the plane has not been found.

European Union negotiator rejects key element of United Kingdom govt Brexit plan
Dominic Raab and Michel Barnier will hold face-to-face talks in Brussels at the end of the latest round of Brexit negotiations. An agreement must be made in principle within at least three months, before the European summit in mid-October.

Temperatures in Britain set to test all-time record as heatwave continues
Children, the elderly and people with lung or heart problems have been advised to reduce strenuous exercise and physical exertion. Scotland and Northern Ireland have been experiencing recent temperatures nearer normal for the time of year.

Manchester United to rival Arsenal for Croatian forward
The former Chelsea manager has made comments to the press about his unhappiness with Shaw, questioning his fitness, ambition, and commitment as a player.