Tesla increases its spending and its production

SAN FRANCISCO (Reuters) – Tesla Motors said Wednesday it would accelerate its production to meet strong demand for its Model 3 sedan, unveiled in late March, but it will be difficult for the electric car manufacturer to achieve its objective of become a beneficiary this year due to higher investments.

The action Tesla rose by over 5% to 234.70 dollars in transactions after the close on Wall Street.

The manufacturer led by Elon Musk announced that he was about to deliver 80,000 to 90,000 electric cars this year and produce 500,000 vehicles in 2018, two years ahead of schedule.

Tesla has announced that its net loss had widened to $ 282.3 million (€ 245.79 million), or 2.13 dollars per share, in the first quarter, against $ 154.2 million, or 1 22 per share, a year earlier.

Excluding items, the loss reached 57 cents per share, while analysts expected 58 cents, according to Thomson Reuters I / B / E / S.

The promises in terms of production, however, come with a leap of 50% of capital expenditure in 2016 to $ 2.25 billion, which could lead the manufacturer to turn to the market.

“Multiply production by five over the next two years will be difficult and will certainly require additional capital but that’s our goal,” said Tesla in a statement.

Efraim Levy, an analyst at Standard & Poor’s Global Market Intelligence, believes that Tesla has raised the bar with its production target of 500,000 vehicles. “I bet they will not achieve it,” he said.

Ivan Feinseth analyst Tigress Financial Partners, the development of Tesla will not be smooth but its cars are “close to perfection”.

“It will be difficult (…). I guess it will take a lot of money. But the car industry is a capital intensive activity. (Elon Musk) had no problem to raise money by the past, “he thinks.

The Model-3, with production set to start in late 2017, has aroused great interest and attracted more than 250,000 orders 36 hours after his presentation, according to Tesla.

Net manufacturer’s quarterly sales increased by 939.9 million dollars a year ago to 1.15 billion in the three months to March 31, 2016.

Leave a Reply

Your email address will not be published. Required fields are marked *