Analysts' consensus estimates for Tesla's revenue and adjusted loss per share were $2.51 billion and a loss of $1.83, respectively. It also said it's fine-tuning its Gigafactory 1 production lines to help boost the rate at which it's able to make Model 3 drive units and its own 2170 form factor battery cells, which are used in the Model 3 powerhouse.
Hedge fund managers lost more than half a billion dollars Thursday due to their bet against Tesla, according to estimates from financial technology firm S3 Partners. However, the firm's aggressive spending has been a focus point of their criticism.
"There are walls moving all around that can all impede the success of the Model 3", said Karl Brauer, the senior director of content and executive publisher for Cox Automotive. "Time will tell if they are tears of joy". For the full year, ending in December, the loss is expected to be $5.99 per share, compared to a loss of $2.87 a year ago, while full-year revenue of $11.37 billion would rise 62.4% year over year.
If the Model 3 becomes a hit, Tesla is going to change the concept that to buy a good electric vehicle you have to pay so much money. Model S and Model X combined deliveries in the quarter grew nearly 53% globally versus the prior year, even though the luxury vehicle market was essentially flat. Few things would be worse for Tesla than the Model 3 getting a reputation as a reliability nightmare.
The company must consider its options quickly if it intends on satisfying customers' demands for the Model 3, a vehicle that has fascinated people because of its $35,000 price tag but that also lacks the range many motorists prefer. Tesla's report states that leading up to and beyond the Model 3 launch event, "weekly net order rate for these vehicles was about 15 percent higher" than average with deliveries up 53 percent relative to the same quarter a year ago. Deliveries of the Model S and Model X vehicles rose 53% to just over 22,000.
Shares of Tesla jumped five percent in the after-hours trading.
Senior Analyst Clement Thibault reported another problem with customer support and especially refunding the $1,000 deposit buyers had to pay in order to reserve a Model 3.
The company says that the response to the vehicle has been "overwhelming" and now they put their efforts into producing the product.
Analysts at Cowen circled back to the Model 3 reservation numbers as one of the reasons to remain cautious on Tesla.