Well, Tesla’s earnings are in, and it looks like the company won’t be torching its cash reserves as much as we thought.
The electric carmaker surpassed revenue targets, bringing in $3.4 billion for the first quarter of 2018, with non-GAAP losses of $3.35 per share. On average, analysts estimated non-GAAP losses of $3.58 per share on revenue of $3.22 billion. GAAP losses were $4.19 per share. The company’s stock moved minimally in after-hours trades.
Tesla promised profitability this year: “If we execute according to our plans, we will at least achieve positive net income excluding non-cash stock based compensation in Q3 and Q4, and we expect to also achieve full GAAP profitability in each of these quarters,” the report reads.
In Q1, the company delivered 21,815 Model S and Model X vehicles, and 8,182 Model 3 vehicles. Here’s are some other highlights from the report:
Tesla has been plagued with production-line woes, which it largely attributes to issues with its own battery module. In April, the company had to shut down its manufacturing operations in order to update the facility for increased production. The company plans to take 10 days off in the coming quarter.
Ahead of that shutdown, Tesla says it reached its goal of over producing over 2,000 Model 3 cars per week. The $50,000 Model 3 is the company’s most affordable car and the one on which it’s hinging its growth. Tesla says it will produce 5,000 Model 3 cars per week in the next two months, allowing it to nearly break even on this model in the second quarter. The company says the Model 3 should be margin positive by the third and fourth quarter of 2018.
Hitting that 5,000 per week mark will also benefit consumers, the company says. At that point, Tesla will start manufacturing the much anticipated $35,000 base Model 3.
Revenue from Tesla’s energy storage and generation products was up 92% year over year to $410 million.
Investors will be happy about Tesla’s outlook: Capital expenditure estimates have been reduced to below $3 billion for the year. Tesla also says while next-quarter deliveries of S and X vehicles will be similar to Q1, the company expects to deliver 100,000 of these cars by year end. Tesla will have to pick up the pace to meet that target.