Tesla posts both record revenues and record losses in Q1 2018

Anca Alexe 03/05/2018 | 11:45

Tesla has reported a record of USD 710 million in the first quarter of 2018, while revenues also reached a record high of USD 3.4 billion, up more than 6 percent compared to the previous quarter and 19 percent higher than Q1 2017. The company’s shares dropped by 6 percent, to USD 283.1.

This was the fifth consecutive quarter of record losses, but Tesla representatives are optimistic about the rest of 2018, as they have increased production of the mass market Model 3.

Tesla’s goal is to make 5,000 Model 3s weekly by the end of the second quarter, a goal that has been missed before. In April, they produced 2,270 weekly, so they need to double the production by the end of June, which may make it turn a profit as a result.

The total production was almost 30,000 units last quarter for all Tesla models (X, S and 3). In 2017, it made 103,000 cars.

Investors are worried by the rate the company is using up its cash reserves, which went down by almost USD 750 million last quarter, a rate over six times faster than a year ago.