About that Tesla quarter.
The company posted revenue of $3.41 billion for the quarter, verses analyst estimates that projected the company would have about $3.22 billion in sales. Revenue for the quarter increased 26.3% year over year.
It is a crucial quarter for a company that has been burning through cash at an alarming rate while its CEO Elon Musk continues to tweet and pontificate over the company's long-term goals.
Here are some key takeaways from Tesla's first quarter earnings report which was released just after the market close on Wednesday, May 2:
- Tesla is not for the faint of heart: "I think that if people are concerned about volatility they should not buy our stock," says Musk on a conference call with investors.
- The company is cutting its 2018 capex guidance from more than $3.4 billion to less than $3 billion.
- Tesla ended the first quarter with $2.7 billion in cash and $10.8 billion in long-term debt and capital leases. That compares with $3.4 billion and $10.3 billion, respectively, at the end of the fourth quarter.
- Says it expects "positive GAAP net income and positive cash flow" in both the third and fourth quarters.
- The company still expects to "approximately" reach a 5,000-unit weekly Model 3 production rate in about two months
- Model 3 net reservations "continued to exceed 450,000" at the end of the first quarter. That's down slightly from July 2017.
- Tesla is aiming to hit a 25% gross margin next year for Model 3.
- Reiterating its full-year Model S and X deliveries guidance of 100,000. Second quarter deliveries "will likely be similar" to a first quarter level of about 22,000.
- Tesla says its guidance for third quarter and fourth quarter GAAP profitability assumes ramping Model 3 production to 5,000 per week, and getting to breakeven Model 3 gross margin in Q2 and "highly positive" gross margins in Q3 and Q4.
- Tesla says weekly Model 3 production reached a level of 2,270
- SpaceX and Tesla may be on a collision course: When asked if satellite bandwidth was an area of potential collaboration between Tesla and SpaceX in time? Musk says "it might be."
- Tesla hasn't tried hard to sell the Semi, and that the Model 3 ramp is its biggest focus right now.
- Comments point to a spring 2020 production launch for Model Y. In April, Reuters reported Tesla is aiming to start Model Y production in Nov. 2019.
Check out more from TheStreet on Tesla and tune into our live blog of the earnings call this evening.