Tesla Model 3 Red
Source: Tesla

Tesla, the EV maker, announced a whooping loss of $702 million in the 1st quarter of 2019. The reasons for this could be the dis-appointing delivery numbers and cost adjustments.

Another reason for this could be price-cut down on the Tesla Model 3.

Here, the losses shared an amount of $188 million in non-recurring charges. Moving on to one time losses, the EV Maker lost about $494 Million. Meaning about $2.90 per share, which compared to last year was $3.35 per share.

The company also reported a loss of $67 million due to restructuring and a few other non-recurring losses.

CFO Zachary Kirkhorn, Tesla, quoted “This was one of the most complicated quarters in Tesla’s history! “. He further spoke about expanding the automobile sales to deliver the Model 3 in other parts of the world. He also shed light on a few other plans of the company.

Earlier this month, Elon Musk, CEO; Tesla, warned that the brand might have to face the losses due to the poor delivery numbers and the price adjustments.

On April 9th, Tesla also announced that it delivered 63,000 vehicles in the first quarter of 2019. The Model 3 shared around 59,900 delivers whilst Model S and Model X shared a combined number of 12,100 deliveries.

Elon also reiterated the delivery problems due to a few challenges and shifted the delivery of large number of vehicles to the second quarter.

What do you think about the EV Maker and the cars? Let us know in the comments below.

LEAVE A REPLY

Please enter your comment!
Please enter your name here