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Tesla loses $700 million and blames Model 3

Tesla loses $700 million and blames Model 3

Tesla's first quarter 2019 financial results were not at all positive, on the contrary: $702 million in losses. Although Elon Musk already predicted this fall, we did not expect these figures. According to the company, the difficulties in delivering the Model 3 is partly to blame for this situation.

Tesla ended the quarter with 2.2 billion in cash on hand, a decrease of 1.5 billion from the end of 2018. Of that total cash, 768 million are deposits made by customers for their vehicles. In addition, Elon Musk said that they do not expect gains for the second quarter, which should come in the last third of the year.

AndroidPIT tesla model 3 charger
We have had the opportunity to try the Model 3. / © AndroidPIT

Looking at the number of vehicles sold, Tesla delivered 63,000 in the first quarter, down significantly from 90,000 in the last quarter of 2018. Tesla attributes this decline to difficulties in distributing Model 3, which is already available in Europe and China. In Musk's own words: "this has been the most difficult logistical problem I've ever seen in my life, and believe me I've seen many difficult ones.

Added to this is that from January 1, 2019 ended the government support of a $7,500 tax break for the purchase of an electric car, which made the Tesla more expensive, with a consequent curb on demand.

It must be borne in mind that 2018 was an extraordinary year for Tesla, which went from delivering 1,550 Models 3 in 2017 to approximately 140,000, in addition to some 100,000 Model S and X vehicles. This translated into a third and fourth quarter with positive results. In addition, Model 3 also became the world's best-selling electric vehicle.

Source: The Verge

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