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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

4 of 11 Tesla Board Members to Step Down by 2020

In November 2018, Musk was replaced by Robyn Denholm as the chairperson of the company’s board

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

In a move that is likely to weaken the powers of Electric Vehicle (EV) maker Tesla Founder Elon Musk and cut some of his strongest allies from the board of directors, the company has said that four of its 11-member board would step down by 2020, thus shrinking the board’s size by more than a third.

The EV maker reportedly said two directors plan to leave its board in June and two more intend to step down next year as part of a move to improve corporate governance of the electric car company.

“Brad Buss, a member of the board since 2009, and Linda Johnson Rice, who joined two years ago, have asked not to be re-elected when shareholders convene on June 11 for Tesla’s annual general meeting, the company said in a preliminary proxy statement,” The New York Times reported late on Friday.

The departing members of the board include Antonio Gracias and Stephen Jurvetson — close friends of Musk who are also directors in SpaceX, Musk’s space launch company.

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

A member of the board since 2009, Buss was also the Chief Financial Officer of solar panel installer SolarCity for two years until Tesla acquired the firm in 2016.

“Shrinking the board will ‘allow it to operate more nimbly and efficiently’,” the company was quoted as saying in The NYT report.

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In November 2018, Musk was replaced by Robyn Denholm as the chairperson of the company’s board.

Musk had agreed to step down as the Chairman of Tesla for three years and pay a $20 million fine in a deal with the stock market regulatory authority, Securities and Exchange Commission (SEC), to resolve securities fraud charges. (IANS)