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Tesla tempers cash burn as Musk's Model 3 gains steam

02 August 2018

CEO Elon Musk said that the goal now is to remain profitable and record positive cash flows in every quarter going forward.

Tesla ended the second quarter with $2.78 billion in cash after spending $610 million in quarterly capital expenses.

Tesla said it lost $4.22 per share as revenue grew 43 percent to just over $4 billion from April through June. Telsa's shares jumped 9.3 percent to $328.85 in after-hours trading.

Tesla said production was rising and a goal of 6,000 cars per week by the end of August had been set.

The outspoken Musk, who told analysts last quarter that he refused to answer their "boring" questions, apologized multiple times on Wednesday during a post-earnings call for his past behavior.

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David Einhorn's $5.5 billion Greenlight Capital hedge fund lost 18.3% in the first half of 2018 while the benchmark S&P 500 was positive.

Tesla is one of a few automakers developing self-driving technology, but it stands apart because it's been developing its own silicon for performing artificial-intelligence computations, rather than continuing to rely on systems from ongoing chipmakers like Nvidia (NVDA). The compay reported an adjusted net loss of $3.06 per share, more than analysts expected.

Musk attributed his intemperate remarks this spring to the long work weeks at Tesla and a lack of sleep, while adding that "there's still no excuse for it".

The company's cash reserves have dropped to $2.2 billion, down from $3.3 billion at the end of previous year. Tesla says it's on track to produce 100,000 Model S and X cars this year.

During today's call, Musk apologized to both analysts.

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The company has struggled to deliver the Model 3, which critics have celebrated as a "modern marvel", at a price cheap enough to win over new buyers who have been priced out of Tesla's luxury line.

Elon Musk's electric vehicle company had revenues of $4bn in the three months to June, rising 43% from the same period past year.

Tesla spent millions as it reached a goal of producing 5,000 Model 3 sedans per week by the end of June.

Tesla also said it was working on a new version of its Autopilot semi-autonomous software that would have greater safety features.

On Twitter, Elon Musk asked for developers to consider joining Tesla to make games optimized for its vehicles. Analysts were projecting Tesla would go through about US$900 million during the period, after burning more than US$1 billion in three of the previous four quarters.

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Tesla tempers cash burn as Musk's Model 3 gains steam