Tesla beats expectations

This is a win for Tesla, as analysts polled by FactSet expected Tesla to report a loss of $3.48 a share with revenues of $3.22 billion, up from $2.7 billion a year ago. Last quarter, Tesla reported revenues of $3.29 billion. Tesla also ended Q1 with $2.7 billion in cash.

However, the electric vehicle (EV) manufacturer posted a record US$709.6 million (NZ$1.014 billion) net loss in the first quarter and burned through US$745.3 million (NZ$1.065 billion) in cash while struggling to crank out large numbers of its Model 3 mass-market electric car.

The loss raises questions about the company's future and whether it will be able to pay all of its bills by early next year without more borrowing or another round of stock sales.

Tesla also provided some updates to its Model 3 production, stating that they have managed to produce 2,270 cars per week for three straight weeks in April.

“Even at this stage of the ramp, Model 3 is already on the cusp of becoming the best-selling mid-sized premium sedan in the US, and our deliveries continue to increase,” Tesla CEO Elon Musk and CFO Deepak Ahuja wrote in a letter to investors.

“Consumers have clearly shown that electric vehicles are simply more desirable when priced on par with their internal combustion engine competitors while offering better technology, performance and user experience.”

Tesla expects to hit its ideal production rate of 5,000 Model 3 units per week within two months and plans to increase that goal to 10,000 shortly after that.

“In the end, this is all about having factories that are producing the world’s highest quality cars as quickly and as cost-effectively as possible, and with as close to zero injuries as we can possibly get,” the investor letter states. “Our automation strategy is key to this and we are as committed to it as ever.”

Assuming Tesla hits its 5,000 Model 3 cars produced per week goal, Tesla expects to be profitable in Q3 and Q4, excluding non-cash, stock-based compensation. Tesla also expects to achieve full GAAP profitability in Q3 and Q4 as well.