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Tesla Claims Company Having Sufficient Cash Despite of Delivery Drop in 2019

The company seems serious about meeting its vehicle delivery goal this year

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Visitors inspect Tesla electric cars at Brussels Motor Show, Belgium, Jan. 18, 2019. VOA

Surviving the lowest sales in nearly two years, electric car-maker Tesla said the company has “sufficient cash on hand” despite a 31 per cent decline in deliveries in the first quarter of 2019 as compared to the final quarter of 2018.

Out of the total of approximately 77,100 Tesla vehicles that were manufactured in Q1, 2019, nearly 63,000 were delivered, the company wrote in a post on Wednesday.

Tesla vehicle production occurs entirely from one factory in the San Francisco Bay Area but the vehicles are delivered all around the world. Production could be significantly higher than deliveries, as it was in this quarter, when production exceeded deliveries by 22 per cent, the post added.

Though the company witnessed a sharp drop in its deliveries, it retained enough cash that seems to have compensated for the decline in deliveries.

“Because of the lower than expected delivery volumes and several pricing adjustments, we expect Q1 net income to be negatively impacted. Even so, we ended the quarter with sufficient cash on hand.”

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Tesla recently had to give away one of their Model 3 cars and $35,000 prize money to a group of hackers after they cracked its system at a hacking event. PIxabay

Due to a massive increase in deliveries in Europe and China, the company delivered half of the entire first quarter’s numbers by March 21, ten days before the end of the quarter which caused a large number of vehicle deliveries to shift to the second quarter.

“At the end of the first quarter, approximately 10,600 vehicles were in transit to customers globally,” the post said.

Tesla has just begun the expansion of its premium sedan “Model 3” car that was announced in July 2017 and the vehicle has been doing exceptionally well in the markets where it has been made available.

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The company seems serious about meeting its vehicle delivery goal this year.

“US orders for Model 3 vehicles significantly outpaced what we were able to deliver in Q1. We reaffirm our prior guidance of 360,000 to 400,000 vehicle deliveries in 2019,” the post noted. (IANS)

Next Story

SpaceX Run By Elon Musk Aims To Raise $250mn in New Funding For Hitting $36bn Valuation

SpaceX is preparing its Crew Dragon spacecraft to fly NASA astronauts Doug Hurley and Bob Behnken to and from the space station in the first flight. The uncrewed Demo-1 mission flew in March last year

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SpaceX
The fundraising comes as SpaceX continues development on three important programmes: Crew Dragon, Starlink and Starship, reports CNBC. Wikimedia Commons

Elon Musk-run SpaceX is aiming to raise around $250 million in new funding that would bring the rocket launch company’s valuation to $36 billion.

The fundraising comes as SpaceX continues development on three important programmes: Crew Dragon, Starlink and Starship, reports CNBC.

The company raised $1.33 billion during 2019 and has raised more than $3 billion in funding to date.

The new round of funding could close sometime in the middle of next month.

SpaceX has received a $3.1 billion contract award as part of NASA commercial crew programme. It charges its customers nearly $60 million per launch of one of its Falcon 9 rockets and had 13 such launches in 2019.

Ahead of its launch of astronauts to the International Space Station (ISS) aboard its Crew Dragon capsule which is tentatively scheduled for May 7, SpaceX has hired a top former human spaceflight expert.

In his new role, William Gerstenmaier, the former leader of NASA’s human spaceflight programme, is reporting to SpaceX Vice President of mission assurance Hans Koenigsmann.

Elon Musk
Elon Musk-run SpaceX is aiming to raise around $250 million in new funding that would bring the rocket launch company’s valuation to $36 billion. Wikimedia Commons

SpaceX is preparing its Crew Dragon spacecraft to fly NASA astronauts Doug Hurley and Bob Behnken to and from the space station in the first flight. The uncrewed Demo-1 mission flew in March last year.

“We’re highly confident that the hardware will be ready in Q1, most likely at the end of February but no later than March. And we think it appears probable that the first crewed launch would occur in the second quarter,” said Musk after the successful uncrewed test of its Crew Dragon capsule’s in-flight launch escape capabilities last month.

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Musk said that if all goes well, the first crewed flight on the Crew Dragon could take place in the second quarter of this year. (IANS)