Tesla reports $702M loss amid Model 3 demand worries | News Coverage from USA

Tesla reports $702M loss amid Model 3 demand worries

Facing concerns about demand and profitability, Tesla reported a bruising first-quarter net loss of $702 million on Wednesday, providing more fodder to critics who say the company is overhyped.

Tesla reported its first-quarter earnings as investors are growing increasingly nervous about sales of the company’s critical Model 3 compact car.

Despite difficulty in shipping vehicles overseas, Tesla maintained its projection of sales totaling 360,000 to 400,000 vehicles for the year.

The company’s revenue totaled $4.54 billion, up 33.2% from a year earlier as sales of the Model 3 picked up steam.

But the performance fell far short of expectations. S&P Global Market Intelligence analysts had projected first-quarter revenue of $5.18 billion and a net loss of $336 million.

The company’s $702 million loss was nearly equivalent to its $710 million loss from a year earlier.

Tesla CEO Elon Musk pledged on Monday to activate a million Tesla vehicles with full self-driving capability to serve as revenue generating robo-taxis in 2020. Analysts are skeptical that he can pull it off.

Tesla also plans to launch its Model Y crossover and electric semi-truck in 2020, which would provide additional revenue.

Until then, the Model 3 compact car, Model S sedan and Model X crossover make up the company’s vehicle lineup and the bulk of its revenue.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

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