Published: Thu, August 02, 2018
Finance | By Gustavo Carr

Tesla shares charged up by Musk's positive production forecast

Tesla shares charged up by Musk's positive production forecast

Some analysts have questioned whether Tesla can maintain a higher rate of production after rushing to meet an internal target to build 5,000 Model 3s per week by the end of June. "It's not right", he told an analyst from RBC Capital Markets. "So I think we're all really excited about what Andre and his team will be able to do with this hardware in the future".

The analysts accepted his apologies.

Musk also tweeted that developer applications must show prior work and that he's looking for games with "max playability & creativity". But the company burned through only about $430 million of its cash on hand, leaving it with $2.8 billion in its reserves.

Several analysts had predicted a widening loss for Tesla.

Tesla said it continued to produce 5,000 Model 3 cars per week in July (a figure it hopes to raise to 6,000 this month), along with 2,000 of its Model S and X vehicles.

The company's net loss more than doubled from the same quarter a year ago, and was slightly more than the loss in the first quarter of 2018.

Musk said it will cost the same amount as systems Tesla now puts in its cars, but will bring much more processing power.

More news: Geraldo: Former 'Consigliere' Cohen Could Represent a 'Significant Legal Threat' to Trump

Musk added a caveat, however: "There may be occasional quarters where we pay back a big loan or something".

The financial results capped a turbulent period for Tesla, which achieved a crucial manufacturing milestone by producing 5000 Model 3 cars per week at the end of June. Musk also says that Pole Position could be linked to the car's actual steering wheel, which would certainly make for an interesting addition.

Tesla had to put some Model 3 production in a tent outside its Fremont facility, but it was necessary at the time to hit that all-important production goal of 5,000 Model 3s per week. While construction is expected to start in the next few quarters, Tesla's investment won't begin "in any significant way" until next year, according to the shareholder letter.

Peter Bannon, a former semiconductor architecture engineer at Apple turned leader in Tesla's Autopilot department, spoke during Tesla's quarterly earning call about the new hardware in the company's portfolio, Autopilot v3.

Longer-range, Musk is counting on Tesla Gigafactories in Europe and China to boost profits.

The after-hours rise took shares to around $328. That was more than 11 percent above the closing price for the trading day, but still below the $370 peak that was recorded in June.

Like this: