Tesla has fallen back into the red in the first quarter after last year’s profitable second half, the result of weaker deliveries of its namesake…
Tesla has fallen back into the red in the first quarter after last year’s profitable second half, the result of weaker deliveries of its namesake electric vehicles, reporting a much bigger loss than analysts expected.
Tesla lost $702 million in the quarter or $4.10 per share, on a GAAP basis. On an adjusted basis, this comes to $2.90 versus the 69 cents per share expected. Revenues were expected to hit $5.19 billion but came in at $4.54 billion, reports CNBC.
The bigger than expected loss on shares as well as revenue can be attributed to waning sales of the electric car company’s Model 3, especially now that the federal tax credit has disappeared. The company also took a hit after paying off a $920 million convertible bond obligation in cash in March.
“This was one of the most complicated quarters I can think of in the history of the company,” Zachary Kirkhorn, Tesla’s new CFO, said on a conference call with analysts, according to Forbes.
Tesla Factory, Fremont, California
Maurizio Pesce from Milan, Italia
One of those complications included the start of shipments of the Model 3 to China, something that proved to be a lot more time-consuming than expected.
