Tesla lost $ 702 million last quarter, breaking with its profit series

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The automaker announced Wednesday that it has lost $ 702 million in the last quarter.

Wall Street was already preparing for what an analyst called an "apocalyptic" result – but the result was still much worse than expected.
While the company had already recorded large losses of this size, analysts surveyed by Refinitiv have predicted that You're here (TSLA) would be about 301 million dollars in the red for the quarter. The actual number was more than double that amount.

Tesla's shares fell slightly after the earnings were released, but then returned to profitability.

The CEO, Elon Musk, said during a conference call with investors that the last quarter had been tough, but that Tesla has optimistic prospects. The demand for Tesla's three electric vehicle models is strong, he said.

"We also have a lot of markets [abroad] where we have not yet exploited the demand, especially the Model 3, "Musk said.

Leaders said they expected cash stores to "grow steadily" over the next few months.

Tesla posted consecutive profits in the previous two quarters. Last quarter, for example, Tesla posted earnings of $ 139 million on revenue of $ 7.2 billion.

The company has already revealed earlier this month that it has delivered approximately 63,000 vehicles to its customers in the first three months of 2019, a 31% decrease from the previous quarter and the largest decrease. never recorded by Tesla.

The drop is due to a number of factors: First, a $ 7,500 federal tax credit was cut in half for Tesla vehicles at the beginning of the year. Secondly, Tesla had to face "many challenges" to speed up the delivery of its vehicles abroad.

Tesla expects its shipment numbers to increase significantly, probably in the next quarter, once these issues are resolved.

A slowdown in sales is bad news for Tesla as it needs cash to repay its large debts. Tesla said it ended the last quarter with $ 2.2 billion in cash, which the company had previously described as "sufficient".

This is a story in development. Come back for updates.

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