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Tesla losses rise 30% despite improving 135% revenue

Automotive News

The electric car maker says that the development of the new Model 3 is almost completed

Disruption comes at a price. In the case of the electric car manufacturer Tesla is reflected in its income statement in losses of 400 million dollars during the first quarter. It is an increase of 30% when compared to a year ago. The company’s revenues are, however, experiencing robust growth, growing by 135%, to 2.7 billion.

The losses are higher than expected but the income is higher than analysts projected. But beyond the numbers, in the park cry details about the new Model 3, the electric utility for the mass market. In the note with the results explains that “the development of the vehicle is almost complete” to start production in summer.

The Model 3 is already doing real tests on the asphalt. Tesla says the goal is to assemble 5,000 vehicle units a week at some point this year and then double it to 10,000 units by 2018. It is an exponential increase in production capacity if you think that last year Delivered to customers 76,230 units of Model S and Model X.

In parallel, it plans to open a hundred new stores, establish delivery centers as well as workshops for the repair of vehicles. Tesla has $ 4 billion in cash. The increase in losses is explained in part by the investment to increase the production of its three models. The results also include loads associated with the Solar City integration.

Tesla recently went to the markets to provide the liquidity with which to finance its operations. But although it has money on hand to tune the machine, last quarter spent 600 million to operate. That puts increasing pressure on its founder, Elon Musk, who has little room for error now to realize his plan to revolutionize transportation.

El PAIS – Nueva York – 4 MAY 2017 (Translation Soft)

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