Tesla posted a loss of $702 million in the first quarter, wider than what analysts were expecting, and noted that the company won't post another profit, likely until the third quarter.
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"We expect to return to profitability in Q3 and significantly reduce our loss in Q2" said CEO Elon Musk in the quarterly update. He also noted production of the Model 3, the most affordable of the automaker's cars, is facing some hiccups.
"We began production and deliveries of Model 3 vehicles for overseas markets. As noted in our Q1 2019 Vehicle Production & Deliveries letter, due to unforeseen challenges we had only delivered half of the quarter’s numbers ten days before the end of the quarter. This caused a large number of vehicle deliveries to shift into Q2" Musk added.
Shares were little changed in the extended session and are down over 20 percent so far this year.
The Model S and Model X also saw some headwinds. "Deliveries of Model S and Model X declined to 12,100 vehicles in Q1 compared to our two- year run rate of roughly 25,000 units per quarter. This decline was mainly caused by weaker Q1 demand due to seasonality, pull-forward of sales into Q4 2018 in the U.S. due to the first scheduled reduction of the federal EV tax credit in Q1 and discontinuation of our 75 kWh battery pack" noted Musk.
However, Musk will only receive that money over the course of a 10-year period if Tesla's market capitalization reaches $650 billion.
Musk’s base salary (which he did not accept) was $51,380 in 2018, which reflects the legal minimum wage in California, according to documents filed with the Securities and Exchange Commission.