Tesla posts $3.4bn in revenue, aims 5,000 cars a week
San Francisco, May 3: Aiming to ramp up its production targets to 5,000 cars a week, Elon Musk-run Tesla has reported revenue of $3.4 billion for the first quarter of 2018, saying that Model 3 production hit 2,270 a week in April.
Tesla's cash balance dropped but the US-based electric vehicle automaker ended with $2.7 billion in cash.
"We made significant progress on the Model 3 ramp in the second half of Q1, and the momentum continued into early Q2. Prior to a planned shutdown in mid-April to further increase production, we produced more than 2,000 Model 3 vehicles for three straight weeks, and we hit 2,270 in the last of those weeks," Tesla said in a shareholder letter late on Wednesday.
"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," the letter read.
According to Re/Code, the company lost $710 million on $3.4 billion in revenue as it struggled to meet the production goals for its mass-market vehicle Model 3.
Tesla was aiming at producing 2,500 cars a week by March-end but ended up making only 2,270 cars a week in April.
"We now expect to reach a module production rate of 5,000 car sets per week even before we install the new automated line designed and built by Tesla in Germany," the company said.
"Once we hit the 5,000 per week milestone, we intend to incorporate our learnings to continue to increase output on our existing manufacturing lines beyond 5,000 units per week, and then in a capital efficient manner to add incremental capacity to ultimately get to a 10,000 unit weekly rate," the letter said.
In Q1, Tesla produced 24,728 Model S and Model X and 9,766 Model 3 vehicles, and delivered 21,815 Model S and Model X vehicles and 8,182 Model 3 vehicles -- totalling 29,997 deliveries.
Musk has already told his staff that he expects "to reach full GAAP profitability in the third and fourth quarters of 2018. Achieving that will depend significantly on whether the company can produce 5,000 'Model 3s' a week."
In his recent email, Musk said the company will add 400 people per week at both factories for several weeks to meet the ambitious production goals.
Musk has also admitted that his electric vehicle-making company has been too reliant on robots for production and the human workforce is underrated.
"Yes, excessive automation at Tesla was a mistake. To be precise, my mistake. Humans are underrated," Musk tweeted last month.
Tesla reported a record loss of $675.4 million -- $4.01 per share -- on a revenue of $3.29 billion in the fourth quarter of 2017.
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Sharad Pawar praised RSS after seeing how it burst fake narrative balloon of LS polls: Fadnavis
Nagpur, Jan 10: Maharashtra Chief Minister Devendra Fadnavis on Friday said NCP (SP) chief Sharad Pawar praised the RSS after realising how the outfit managed to overcome the fake narrative spread by the opposition in the 2024 Lok Sabha polls.
The opposition had claimed BJP wanted to win 400 seats to change the Constitution and end reservations, a narrative which BJP leaders later claimed hit the party hard.
On Pawar praising the RSS recently, the CM said the MVA was successful in creating a fake narrative during the 2024 Lok Sabha polls.
"When assembly polls were approaching, many people from diverse fields who are inspired by the RSS played their role and burst the balloon of this fake narrative. Sharad Pawar saheb is very intelligent. He would have certainly studied this aspect. He realised that this (RSS) is not a regular political power but a nationalist power. In any competition it is good to praise others," he added.
That is why Pawar may have praised the RSS, Fadnavis said.
Speaking at an interaction with senior editor Vivek Ghalsasi at Late Vilasji Fadnis Jivhala programme here, Fadnavis also said he had asked for organisational work when Eknath Shinde was made chief minister in June 2022, but senior leaders asked him to join the government.
He also said Prime Minister Narendra Modi asked him not to behave like an extra-constitutional authority in the government.
He said the decision to become deputy chief minister on the command of the party leadership earned him a lot of praise from the cadre.
After the massive mandate the ruling alliance received in the 2024 assembly polls, Fadnavis said people and party workers would not have been happy if the CM was not from the BJP.
Shinde himself agreed within minutes that the CM must be from the BJP, which itself got 132 seats and was close to a majority of its own in the 288-member assembly, he added.
On Shiv Sena (UBT) chief Uddhav Thackeray meeting him during the winter sessions of the legislature in Nagpur, Fadnavis said he had announced he would not indulge in politics of revenge after becoming CM and all leaders responded positively to it.
On chances of the NCP (SP) and NCP coming closer or reuniting, Fadnavis said, "If you see the developments that took place from 2019 to 2024, I realised never say never and anything can happen. Uddhav Thackeray goes to some other party and Ajit Pawar comes to us. In politics anything can happen though I am not saying this should happen."
He praised BJP leader Arun Gujarati from whom he learnt patience, which he claimed was an important quality in politics along with the ability to take criticism.
In a lighter vein, he said, "I only get angry when I am hungry. If you see me angry then give me something to eat and my anger will go away."
