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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

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

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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”.

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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)