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Tesla loses another $675 million in Q4, its biggest quarterly detriment yet

As expected, Tesla saw some flattering big waste this quarter, mostly associated to Model 3 delays. The company reported $675 million in waste attributable to shareholders in Q4, jacket up 2017 with almost $2 billion in waste for the whole year.

But distinct with other cursed companies posting apocalyptic waste entertain after quarter, Tesla revenues have been sizable. Just this quarter, Tesla warranted $3.3 billion in revenues from automotive sales, leasing, appetite products, and services. For the year, the company reported almost $12 billion in revenue. People wish Tesla products, but Tesla can’t stop spending some-more income than it has.

The company (naturally) contends that all waste are temporary. “At some indicate in 2018, we design to start generating certain quarterly handling income on a sustained basis,” the company settled in its financier letter. Musk specified in the concomitant gain call that he approaching the company to be essential by the some-more difficult Generally Accepted Accounting Principles this year. That line may sound familiar: Tesla claimed identical projections in early 2016, and while Tesla did indeed have its second-ever essential entertain that year, the company resumed its loss-making robe shortly after.

Model 3

The company now has to spin Model 3 prolongation up a lot. In early January, Tesla reported good delivery numbers for Model S and Model X vehicles, and positively Tesla’s appetite business seems healthy (Tesla commissioned 143 MWh of battery storage in Q4 2017, not counting its large designation in South Australia). But investors are endangered about the Model 3 since it was ostensible to be the mass-market automobile that could fly fast off the public line and make income for the cash-burning company.


The entry-level electric automobile debuted in Jul 2017 to good fanfare, but the company has struggled for months to ramp up prolongation meet demand. The entertain after the Model 3 was introduced, Tesla suggested that it had only delivered some 266 vehicles. The company pronounced the issue was bottlenecks on the prolongation floor, and it bought an automation and machining company called Perbix, presumably to hoop those bottlenecks.

But by the finish of Q4, deliveries seemed only marginally better. In early Jan the company expelled a matter on Q4 Model 3 deliveries forward of today’s Q4 gain call, and Tesla pronounced it had delivered just 1,550 Model 3s in Q4. At the commencement of the year, the company pronounced it expects to shake out 2,500 Model 3s per week by the finish of Q1 2018, and 5,000 per week by the finish of Q2 2018. But the financier minute published currently seemed to sidestep that guess even further.

“It is critical to note that while these are the levels we are focused on attack and we have plans in place to grasp them, the before knowledge on the Model 3 ramp has demonstrated the problem of accurately forecasting specific prolongation rates at specific points in time,” the minute said.

Musk’s opinion seems to be that there’s no doubt Tesla will grasp its ramp numbers and that teenager delays are immaterial in the big picture. “If we can send a Roadster to the asteroid belt, we can substantially solve Model 3 production,” Musk pronounced on today’s gain call, referencing the SpaceX Falcon Heavy launch yesterday.

The additional stuff

Tesla never seems to wish for side-quests. The company builds still lithium-ion battery storage for residences and utilities; it built 330 new Superchargers last year; and it just entered a new understanding with South Australia to build a outrageous 250 MW virtual appetite plant. Last fall, Musk suggested a almost lorry slated for prolongation in the nearby future and a new ultra-luxury Roadster. Musk has hinted that after the currently-unannounced Model Y is revealed, Tesla will rise a pickup truck.

In today’s financier letter, Tesla hinted at continued growth of Autopilot, an automotive underline that saw a good understanding of debate in prior years. The company suggested that it had finished “an endless renovate of the underlying design of the software” enabling “a step-change alleviation in the collection and research of information and essentially extended its appurtenance training capabilities.”

Musk also denied that Lidar was particularly required on cars for unconstrained driving. “We have to solve pacifist visual intensely well,” Musk said, referencing using picture recognition formed on camera data. “At the indicate that you have solved pacifist visual intensely well, what is the indicate of active optical?”

As for energy, the company reported that the South Australia designation is operative as designed in its financier letter. “This plan is already generating estimable advantage by assembly high summer direct when supply is singular and by instantly responding to random interruptions or magnitude drops in the grid,” Tesla wrote. “Due to the success of this project, we’re seeing an boost in direct for Powerpack, the blurb appetite storage product.”

Musk quickly addressed the almost lorry on the phone call currently as well, observant that a run rate of 100,000 units a year would be a reasonable expectancy 4 years from now (although given prior years-out projections for the Model 3, it’s protected to take that with a pellet of salt). “I consider we may be means to surpass the specs that we announced last year which would be exciting,” he added. Tesla astounded many by announcing a 500 mile operation for the almost last year.

Musk also talked about the Fremont bureau and the Gigafactory in Sparks, NV. He remarkable that on Model 3 production, the company’s semi-automatic lines are operative faster than the fully-automated lines, but the company’s engineering organisation in Germany has grown a entirely programmed line that will be delivered to Tesla’s comforts at the finish of March. “The rival strength of Tesla is not going to be the car, it’s going to be the factory,” Musk said. Musk combined that a primary design for Tesla is “productizing the Gigafactory.”

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