Tesla released their Q1 reports today, outlining millions in losses while trying to maintain optimism for the future. Within the Tesla shareholder letter, included below, they highlighted the mass-market appeal for their electric vehicles in astonishing pre order numbers for the Model 3, due at the end of 2017. Tesla touts their future mass market car as the biggest consumer product launch ever, citing $14 billion in future sales with over 325,000 reservations. In the present though, first quarter non-GAAP net loss decreased 34% sequentially to $75 million, or $0.57 loss per share based on 133 million basic shares, while first quarter GAAP net loss was $282 million or $2.13 loss per basic share. Analysts had predicted a non-GAAP loss of 58 cents per share for Tesla.
The overall record production levels achieved were expected due to augmented Model X production, however Tesla failed to reach their projected level of deliveries for their new SUV. Instead, spiked interest in the Model S accounted for the increase, as orders were up 45% from Q1 last year. The company promises to be making significant progress in increasing production and plan to continue increasing total vehicle production to support over 50,000 deliveries in the second half of this year. Continuing to ramp high quality production is the top priority at Tesla right now. Additionally, Musk affirms their goal of 80,000 to 90,000 deliveries this year. It remains to be seen if Tesla can deliver on this lofty goal. This will have major implications for the future production timeline for the Model 3 and the future of Tesla as a whole. Tesla will have to prove to investors and the industry that it deserves its market value of $31 billion.
Telsa Shareholder Letter (pdf)