Tesla CEO pre­dicts profit de­spite big loss

Honolulu Star-Advertiser - - BUSINESS REPORT -

DETROIT >> Tesla’s record net loss in the first quar­ter and fast-burn through mil­lions of dol­lars is rais­ing ques­tions about the com­pany’s abil­ity to pay all its bills.

CEO Elon Musk con­ceded that crit­i­cism is valid but said dur­ing a some­times-testy con­fer­ence call with an­a­lysts Wed­nes­day that it’s “quite likely” Tesla will make money and have pos­i­tive cash flow in the third quar­ter.

“It’s high time we be­came prof­itable,” said Musk, who also promised re­struc­tur­ing this month to achieve profit goals.

“The truth is you’re not a real com­pany un­til you are, frankly. That’s our fo­cus right now.”

Wed­nes­day’s re­sults showed Tesla tear­ing through

$745.3 mil­lion in cash in the first quar­ter, due largely to the slow pro­duc­tion ramp-up of the Model 3 mass-mar­ket elec­tric sedan. The cash burn could put pres­sure on the com­pany to bor­row more or sell ad­di­tional shares to raise more cash.

Tesla posted a record $709.6 mil­lion net loss in the first quar­ter. Rev­enue grew by 26 per­cent from a year ago to $3.4 bil­lion.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.