Tesla CEO Elon Musk said today the forthcoming Model Y electric crossover vehicle will be built on a similar architecture to the recently released Model 3, in an effort to bring the auto to market sooner.
Tesla said it has completed the first installations of the Solar Roof.
Musk previously wanted to develop the crossover on an all new platform that would abandon the typical 12-volt battery architecture, which would help with various qualities of the vehicle, including cutting down production line resources for each individual auto. Wall Street had been expecting GAAP losses of $2.39 per share.
Tesla Inc. (NASDAQ:TSLA) saw unusually large options trading on Wednesday.
Tesla's best hope for improving its financial results is to produce a steady flow of Model 3 vehicles for delivery to customers later this year.
"We know this. We signed up for it".
Musk said previously that initial sales will be limited by manufacturing capacity.
Tesla had more than $3 billion in cash on hand at the end of the latest quarter. Acropolis Investment Management LLC purchased a new stake in shares of Tesla during the second quarter valued at approximately $122,000.
However, the companies costs, including for research and development and sales, also rose contributing to the 15% rise in its losses for the quarter.
Revenue more than doubled to $2.79 billion, besting the analysts' average projection of $2.51 billion. Also, insider Jeffrey B. Straubel sold 109,100 shares of Tesla stock in a transaction dated Tuesday, May 9th.
But on its quarterly earnings call, CEO Elon Musk revealed about 63,000 people have cancelled their Model 3 pre-orders.
The company has about 455,000 net reservations for the vehicle, according to Mr Musk. Tesla said 518,000 people have put down $1,000 deposits for the auto since March 2016, but he didn't seem concerned that 63,000 of those customers have pulled out. Production will ramp to 10,000 a week (40,000 a month or almost 500,000 a year) "at some point in 2018".
For the second half of 2017, we expect strong improvement in operating leverage as revenue should significantly increase in the second half of the year as compared to the first half, while operating expenses should remain essentially flat. The automotive gross margin was 27.9% on a GAAP basis and 25% on a non-GAAP basis, versus 23.1% and 23.6%, respectively, last year. Deliveries were down slightly from the first quarter, but Tesla blamed a shortfall in batteries for the slower pace. It was just much simpler and cheaper to use the Model 3's foundation as it is.
Musk said the company has learned a great deal from the mistakes made with Model S and X production.
At the handover party last Friday (American time), Musk said that the base Model 3 will have 354km of range while a "long range" version will bump the price to start at US$44,000 and be capable of nearly 500km of range. (The) set a $190.00 target price on Tesla and gave the stock a "sell" rating in a research report on Monday, May 15th.