Monday September 23, 2019
Home Lead Story Tesla Posts M...

Tesla Posts Massive $702 Million Loss Last Quarter

The SEC said funding has not been secured, and has accused Musk of misleading investors

0
//
Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

Tesla announced that it has lost $702 million in the last quarter, while the Elon Musk-owned electric car company’s revenue was also down 37 per cent compared to the previous quarter, the media reported.

In its announcement on Wednesday, the company said it expected its sales figures to look much better next quarter, adding that it encountered “many challenges” ramping up deliveries of the vehicles abroad, but confirmed those issues should be smoothed over soon and a major sales bump could be on the way, CNN reported.

Musk said during a conference call with investors on Wednesday that the last quarter may have been rough, but Tesla has a rosy outlook. Demand for all three of Tesla’s electric vehicle models is strong, he said.

“We also have a lot of markets (abroad) where we haven’t yet tapped into demand, especially the Model 3,” the billionaire businessman said.

Tesla revealed earlier this month that it delivered about 63,000 vehicles to customers in the first three months of 2019 – a 31 per cent drop compared to the prior quarter, and the single largest decline Tesla has ever reported.

Slowing sales are bad news for Tesla because the company needs cash in order to pay down its sizable debts, according to analysts.

tesla
A Telsa car recharges at a Tesla charging station in Charlotte, N.C.. VOA

Tesla said it ended last quarter with $2.2 billion of cash on hand, which the company had earlier described as “sufficient”.

Company stocks dipped slightly after earnings were released, but later edged back to even.

It had posted back-to-back profits in the previous two quarters. Last quarter, for example, Tesla recorded a profit of $139 million on sales of $7.2 billion.

Also Read- People of Lao Find Social Media For News Most Trustworthy

Meanwhile, Musk has been in a standoff with the US Securities and Exchange Commission ever since he tweeted that he was “considering” taking the automotive company private last year, and that he had secured funding.

The SEC said funding has not been secured, and has accused Musk of misleading investors. (IANS)

Next Story

Elon Musk Shares Pictures of SpaceX’s New Starship Prototypes

Musk is expected to announce the company’s latest update to the Starship on September 28

0
Elon Musk, CEO of SpaceX and Tesla. Wikimedia Commons

Tesla and SpaceX CEO Elon Musk has posted two new pictures on Twitter showing the latest construction updates for the Starship rocket prototype that is being built at SpaceXs Boca Chica, Texas facility.

One of the images shows the vehicle, Starship Mk1, which is being assembled at SpaceX’s South Texas facility near the village of Boca Chica, in the background, standing behind a building that contains a variety of parts and other equipment, news portal space.com reported on Wednesday.

Musk captioned the picture: “Droid Junkyard, Tatooine.”

FILE – SpaceX founder Elon Musk tells the 67th International Astronautical Congress in Guadalajara, Mexico, that he envisions 1,000 passenger ships flying en masse to Mars and says it could become reality within a century, Sept. 27, 2016. VOA

The second photo he posted is of a large metal disc being lowered onto Mk1’s body. This he captioned as “Area 51 of Area 51”.

Also Read: By 2030, African Children to Make ‘Half of the World’s Poor’

SpaceX hopes for Starship to be used as a commercial spacecraft that will be able to take off and land like an airplane. It is expected to be ready by 2021.

Musk is expected to announce the company’s latest update to the Starship on September 28. (IANS)