Tesla 3rd Quarter Fail: $13 Million a Day to Increase Deliveries by 12 Cars – IOTW Report

Tesla 3rd Quarter Fail: $13 Million a Day to Increase Deliveries by 12 Cars

Breitbart: Tesla burned $13 million more cash per day to achieve record deliveries of just 12 more cars per day in a dismal third quarter.

Elon Musk announced on October 2, after the close of trading on Wall Street, that Tesla Inc. reported its “all time best quarter” with record deliveries of 26,150 vehicles, including 14,065 Model S sedans; 11,865 Model X SUVs; and 220 Model 3 economy cars. But that was a huge disappointment to analysts that had expected about 1,380 more deliveries, with a value of about $69 million. Tesla stock dropped 1.7 percent in after-hours trading.

Breitbart News reported in June 2016 that despite Tesla never meeting any of its production targets or making a profit in the last five years, CEO Elon Musk told shareholders at the company’s annual meeting that through “physics-first-principles,” Tesla would shape a new mode of industrial production to improve efficiency by “factors of 10 or even 100 times.” Musk said Tesla’s key advantage in building all-electric vehicles was limiting the number of moving parts. He noted that internal combustion engines have up to 10,000 parts, while Tesla’s Model S only had 20 moving parts.

But the company’s delivery-to-customers performance over the last four quarters has barely moved: down 25; up 30; down 33 and up 45. To increase the daily delivery rate from 276 a day in the first three months of the year to 288 in the last three months, Tesla has suffered negative cash flow of about $13 million a day. That works out to a burn rate of over $1 million per car to achieve Musk’s “all time best quarter.”  MORE

8 Comments on Tesla 3rd Quarter Fail: $13 Million a Day to Increase Deliveries by 12 Cars

  1. A TESLA employee who works in the so-called “Energy Division” told me Musk’s target share price for TSLA is $600 after an excellent Model 3 first year roll-out.

    I told him Musk’s been sleeping too close to his Power Wall. The EMR has fried his noggin.

    With an economic collapse on the horizon,
    all-electric cars will be the very last thing on people’s minds. 🙁

  2. Tesla can’t stop now, any injection of reality into his business model will push it into bankruptcy, then Soar Ciry andfianlly Sapace X. There’s a business man in the Whitehouse now and Musk is in trouble.

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