Tesla Another Huge Loss But Higher Revenue, Model 3 Production


Loup Ventures Note on Tesla

Gene Munster, Will Thompson

[b]Tesla Results: Pieces Moving into Place for Sustainable Story
We are positive on the Tesla story given the company’s well-positioned product roadmap around EV, autonomy, solar, and storage.
Tesla shares are up ~9% after hours as the company made progress on key pieces to the long-term sustainability of the story.
The “run out of cash” concern still exists, but likely not for long, as it would be effectively ended if the company turns a profit in Sep-18 or Dec-18.
Musk was more measured on the call, improving investor confidence.
Model 3 production and profitability remain unchanged.
Demand for Model 3 likely to increase as more are available for test drives and are seen in the wild.
Shanghai factory debt financing points to continued investor support.
One negative from the call: Musk suggested a 2020 total output of 750k-1M vehicles compared to his previous target of 1M.