Elon Musk said he is open to raising capital after Tesla reported one of its worst losses on record

WSJ | 4/24/2019 | Tim Higgins
TaylorShayeTaylorShaye (Posted by) Level 3
Click For Photo: https://images.wsj.net/im-69441/social?&imgtype=.jpg

Mr. Musk’s tune changed on Wednesday after Tesla reported one of its worst quarterly losses in history and its cash on hand fell by more than 40% to $2.2 billion from three months earlier.

“Tesla today is a far more efficiently operating organization than it was a year ago,” Mr. Musk told analysts on the quarterly call. “We’ve made dramatic improvements across the board. And so I think there’s merit to the idea of raising capital at this point.”

Mr - Musk - Tesla - Fact - Capital

Mr. Musk stopped short of declaring that Tesla would in fact raise more capital. But his comments were a notable reversal after he remained defiant over the past year, and could restore faith among some investors who have helped send the company’s stock down more than 20% this year. Other investors may look at it as a sign that Tesla hasn’t yet reached its vision of becoming a self-sufficient business.

Tesla’s stock rose slightly in after-hours trading following a 1.9% drop in the regular session ahead of Wednesday’s results. Tesla’s 22% share-price decline this year contrasts with gains of about 17% for the S&P 500 index.

Tesla - Midst - Demand - Model - Price

Tesla is in the midst of proving it can sustain lofty demand for the Model 3 after finally lowering the price of the sedan to the long-promised $35,000 threshold. But a 31% decline in vehicle deliveries from the fourth quarter has heightened concern that Tesla is reaching a peak of buyers for its more mainstream vehicle.

The company posted a $702 million loss attributable to common shareholders for the first quarter, slightly better than a year earlier. On an adjusted basis, the loss was $2.90 a share; analysts surveyed by FactSet were expecting a loss of $1.15 a share.

Results - Return - Ink - Quarters - Hopes

The results mark a return to red ink after two consecutive profitable quarters that had renewed hopes that Tesla’s operations had turned...
(Excerpt) Read more at: WSJ
Wake Up To Breaking News!
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!