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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

Tesla Owners Unintentionally Buy Software Updates, Face Troubles in Getting Refunds

Famous scholar and Tesla owner Nassim Nicholas Taleb reported a similar story on Twitter

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Back in December, Tesla introduced one-click and the first feature available via the easy-buy feature was the Acceleration Boost upgrade. Pixabay

Some Tesla owners are unintentionally buying expensive software upgrades through the automaker’s app which range from $ 4,000 to almost $ 10,000 and they are facing trouble getting refunds.

The issue was noted by Tesla owner Jon McLaughlin was surprised when his wife called to tell him that she was now able to use some Full Self-Driving features on their Model 3, even though they didn’t buy those options, reports electrek.

“This prompted me to look at the ‘upgrades’ section of the mobile app. Interestingly, the app said I had purchased all the eligible upgrades. Odd, I have not purchased anything. So, I proceed to click on ‘purchases’ within the mobile app only to see two invoices. One for the new performance boost and the other for FSD,” the report quoted Jon.

Additionally, he mentioned that his credit card was charged $9,700 on January 5 without his authorization.

Back in December, Tesla introduced one-click and the first feature available via the easy-buy feature was the Acceleration Boost upgrade.

Tesla
Some Tesla owners are unintentionally buying expensive software upgrades through the automaker’s app which range from $ 4,000 to almost $ 10,000 and they are facing trouble getting refunds. Pixabay

When McLaughlin contacted Tesla customer service, he was told the products were non-refundable, despite him allegedly not making the purchase in the first place.

Famous scholar and Tesla owner Nassim Nicholas Taleb reported a similar story on Twitter.

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Eventually, Tesla CEO Elon Musk intervened, saying he would make sure Taleb’s issue will get resolve soon. (IANS)