Tesla to raise new capital totally 2,3 billion dollars

20190207_154953The US Tesla(TSLA) announced yesterday evening that it will raise new capital totally 2,3 billion dollars. The issue means that it includes 650 million dollars new shares and 1,35 billion dollars convertible debt and option to raise more 15%.

The news seems to be relief to investors while the Q1 figures were somewhat disapointing with the capital structure. Investors have commented the decision by securing the scaling of the new Model Y,which was unveiled in March and which is going to utilise the Model 3 platform, and the China production ramp up.

Goldman Sachs and Citigroup are managing the offer. Tesla shares closed higher on Thursday to 244,10 dollars in New York.

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Tesla Q1 revenue 4,5 billion dollars – profitable again in Q3

The SUV cars manufacturer Tesla (TSLA)  published its Q1 figures and according to the release, the Q1 revenue was 4,5 billion dollars during the period. The Refinitiv estimate was 5,2 billion dollars. The interim report was published after the trading closing in Wall Street on Wednesday evening.

– We expect Tesla to return to profitability in Q3 and significantly reduce our loss in Q2, said the CEO Elon Musk in the release.

The company operating loss was 522 million dollars during the quarter and net loss 702 million dollars, which include 188 million dollars of non/recurring charges. The loss per share was 4,10 dollars compared a profit of 0,81 dollars at the year end and loss of 4,19 dollars a year ago.

The company ended the quarter wiht 2,2 billion of cash, which shows  a 1,5 billion dollars reduction the the year end situation. The reason behind was the 920 million convertible bond repayment and the increase of number of vehicles in transit to customers.

The company has announced earlier that the Q1 deliveries were 63.000 vehicles, when the market estimates were 76.000 vehicles. These  challenges have caused vehicle deliveries to shift into Q2.

Tesla started  production and delievires of Model 3 vehicles for overseas markets during the first quarter. And this was also one of the reasons for delays in deliveries and shifts to the Q2. Tesla said it will focus further to improve operations, cost efficiency and customer experience globally.

– If our Gigafactory Shanghai is able to reach volume production early in Q4 this year, we may be able to produce as many as 500 000 vehicles globally in 2019. This is an aggressive schedule, but it is what we are targeting. However, based on what we know today, being able to produce over 500 000 vehicles globally in the 12/month period ending June 30, 2020 does not appear very likely, he said in the release.

According to Musk, the company operating cash flow less capex should be positive in every quarter, including the Q2. And due to the cost reduction and higher deliveries, the company should return to profitability in Q3.

Tesla shares closed down nearly 2 percent today in Wall Street. The stock closed -1,99 % to 257,85 dollars.

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Tesla Q1 release on Wednesday next week  – new governance guide

The US electric car manufacturer Tesla (TSLA) has announced that the company Q1 information will be released on Wednesday, the 24th April. Also the Investor Day related to Autonomous driving would be next week Monday the 22nd April.

Tesla published a couple of weeks ago its last year production figures. According to that, Tesla produced approximately 77 100 total vechiles, of which were 62 950 Model 3. Deliveries were approximately 63000 vehicles, which was 110 % more than the same quarter last year. Also Tesla confirmed that the guidance for this year would be 360000-400000 vehicles deliveries.

Yesterday the company also announced changes to its board. According to information Brad Buss and Linda Johnson Rice wil not seek re-election, which means that the Board size will decrease to nine. The company has also published new governing rule which cuts the term to two years instead of three. This means that there would be also changes in the Board during 2020. The annual shareholder meeting will be on June, the 11th. The new governing rule will help shareholders vote on the Board performance more frequentely.

Tesla share rose 0,75 % to 273,26 dollars in New York before the Easter holidays. During one year period the share has declined 5,85 %. During 2019 the share has plunged 18 %.

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Tesla: Deliveries 63000 vehicles during the first quarter

 

The US electric car manufacturer Tesla (TSLA) produced approximately 77,100 total vehicles, consisting of 62,950 Model 3 and 14,150 Model S and X during the first quarter 2019.

– Deliveries were approximately 63,000 vehicles, which was 110% more than the same quarter last year, but 31% less than last quarter. This included approximately 50,900 Model 3 and 12,100 Model S and X,  Tesla said in the press release.

– Because of the lower than expected delivery volumes and several pricing adjustments, we expect Q1 net income to be negatively impacted. Even so, we ended the quarter with sufficient cash on hand.

Tesla said that in North America, Model 3 was agaon the best-selling mid-sized premium sedan, selling 60% more units than the runner up.

– We reaffirm our prior guidance of 360,000 to 400,000 vehicle deliveries in 2019, the company said.

Tesla shares were down today in New York trading by 7,75 % to 269,19 dollars. The company´s market cap is 46,15 billion dollars.

 

 

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Tesla: Model Y starting 39 000 dollars

Teslamotors (TSLA) has published more info related to its new mid-size , all-electric SUV, called Model Y.  According to the company information, it has been designed for maximun versatility and safety.  The Standard Range version will start at 39.000 dollars and it will have batteries to 230 miles of range while Model Y Long Range will be able to travel up to 300 miles on a single charge.

Tesla says the Model Y is the designed to be the safest mid-size SUV. It includes for example low center of gravity and rigid body structure. According to the company information, the car can achieve better driving range with less energy than other EVs on the market because of the high-efficiency in the energy usage.

Delieveries are expexted to begin in fall 2020 for Model Y Performance, Long Range Rear-Wheel Drive and Dual-Motor All-Wheel Drive variants. And spring 2021 for the  Model Y Standard Range.

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Tesla: Q4 operating income stable – positive cash flow beyond Q1 2019

According to the Tesla (TSLA) CEO Elon Musk last year was the most pivotal year in Tesla’s history. Mr Musk commented the year in the shareholder letter conserning 2018 and Q4 figures.

– During our Model 3 production ramp, we went through significant challenges with the battery module line at Gigafactory 1 in Nevada, and later with our general
assembly line in Fremont. Thanks to the hard work and ingenuity of our
manufacturing teams, by mid-2018 we successfully overcame these
challenges and stabilized Model 3 production at high volumes, he said on Wednesday.

Tesla´s  Q4 figures:

– Q4 operating income stable compared to Q3 at $414M, operating margin of 5.7%
– Operating cash flow less capex improved from Q3 to $910M in Q4
– Cash and cash equivalents of $3.7B at Q4-end, increased by $718M in Q4
– Q4 GAAP net income of $139M impacted by $54M non-cash charge
– Model 3 GAAP and non-GAAP gross margin remained stable at >20% in Q4

Elon made his estimates of the Model 3 production this year and commented the production shift.

– Model 3’s production rate progressively improved through Q4, with December 2018 being our highest volume month ever. In our Fremont facility, we are now past the steep portion of the production S-curve, and we expect our production rate to continue to
gradually improve. Every part of the Model 3 production process has demonstrated over a 24-hour period the ability to produce at an extrapolated rate of 7,000 vehicles per week. By the end of this year, we expect to be able to produce Model 3 at this rate on a
sustained basis, he stated.

– In Q4, we delivered 27,607 Model S and Model X vehicles to customers. For the full year, we delivered 99,475 Model S and Model X vehicles, which was in line with our guidance. We recently stopped taking orders for the 75 kWh versions of Model S and Model X and
will focus on the longer-range versions of these flagship products instead, with the recent introduction of a 310 mile range base Model S and 270 mile range base Model X, he reminded.

– In total, we are expecting to deliver 360,000 to 400,000 vehicles in 2019, representing a growth of approximately 45% to 65% compared to 2018. In this range, we are expecting to have positive GAAP net income and to generate positive free cash flow
(operating cash flow less capex) in every quarter beyond Q1 2019. We believe these results will be substantially driven by our restructuring action and the ongoing financial discipline with which we are managing the business, Elon said.

– Our 2019 capex, the vast majority of which will be to grow our capacity and develop new vehicles, is expected to be about $2.5 billion. We believe this amount should be sufficient to continue to develop our main projects, such as Gigafactory Shanghai, Model Y and Tesla Semi, as well as for the further expansion of our Supercharger, service and retail networks. We expect to arrange financing through local banks in China to fund most of the capex for Gigafactory Shanghai, he said.

Tesla published its figures after the Wall Street trading, but the company shares closed higher to 302 dollars, up 3,80 %.

 

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