Tesla suffers record fourth quarter loss

Tesla reported negative free cash flow of $276.7 million, compared with $1.4 billion in the previous quarter, and $969.8 million in the fourth quarter a year ago.

Despite the competitive environment, Tesla's stock has soared 35 percent in the previous year, making the company the second-most valuable US automaker, with a market capitalization of 45.5 billion euros, just behind General Motors Co, which had net revenue of $118.5 billion in 2017. But investors are concerned about the Model 3 because it was supposed to be the mass-market auto that could fly quickly off the assembly line and make money for the cash-burning company. The company's shares jumped 3 percent to close at $345 Wednesday after SpaceX successfully launched its Falcon Heavy rocket with Musk's cherry red Roadster as its cargo. Analysts polled by Bloomberg - only a third of whom have a buy rating for the stock - give Tesla an average target price of $319, or 5% below where shares were trading Thursday morning.

"This is the year when we believe we can achieve true cost parity-producing a premium EV like the Model 3 will be no more expensive than producing an ICE vehicle, something that many believe is not yet possible", Tesla said. The production and delivery of the Tesla Model 3, their "affordable" $35,000 (£25,227.30) auto seems to be hitting several roadblocks. Last fall, Musk just revealed a semi truck slated for production in the near future and a new ultra-luxury Roadster. "This is more than fully explained by the slower than expected ramp of Model 3", Tesla explained in its fourth-quarter shareholder letter. But he also said the company had learned many invaluable lessons from the troubles, and made major strides in efficiencies along the production lines.

"We expect investors will remain split on results and that shares will trade sideways as bulls remain patient on Model 3 production". "No further delays in Model 3 production anticipated should be taken positively", said Efraim Levy from CFRA Research. The crossover sales are growing faster than sedans in the U.S., which represents a huge opportunity for Tesla's Model Y. The California company now makes two sedans - Model S and Model 3 - and an SUV called Model X. The company was planning to make 500,000 vehicles in 2018. Given that Tesla's first quarter ends in less than two months, management must have a high level of confidence in this target.

- The mean earnings estimate of analysts was unchanged in the last three months. Once that milestone's completed, Tesla will next need to fix material handling constraints at its Fremont, California, assembly plant before it can reach its 5,000-a-week goal by the end of June. "I'm cautiously optimistic that we will actually be GAAP profitable with no asterisk".

He said there was no ongoing search to replace him as Tesla CEO.

© 2018 Associated Press under contract with NewsEdge/Acquire Media. It would come equipped with 12 ultrasonic sensors, a forward-facing radar system, eight cameras, and a supercomputer capable of processing data 40 times faster than previously. His latest promotional stunt involved firing off a sports vehicle into the sky atop the world's most powerful rocket. No worries. There are plenty of vehicle safety features that are available, affordably, for ALL cars, not just new ones.



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