Tesla plans to pay off its upcoming debt - some $1.8 billion comes due before November 2019 - through internally generated cash flow, Musk said.
FBN's Kristina Partsinevelos reports on Tesla's second-quarter earnings. Shares were up 11% in extended trading Wednesday. "Having achieved our 5,000 per week milestone, we will now continue to increase that further, with our aim being to produce 6,000 Model 3 vehicles per week by late August". His first question came from Bernstein's A.M. (Toni) Sacconaghi, an analyst he butted heads with during the first-quarter conference call. Tesla projected total 2018 capital spending at just below $2.5 billion.
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".
Tesla projected 2018 capital spending of slightly less than $2.5 billion, compared to $3.4 billion past year.
In its last production call in early July, Tesla had barely made its goal of producing 5,000 of the cars a week by the end of June-and that for only a week and by the skin of the company's new tent that houses the car's second production line.
"TSLA is accommodating Model 3 customers who are willing to pay for premium features - making the auto more of a luxury item with a smaller addressable market than the mass market vehicle TSLA had promised". Tesla shares fell after the incident, and Musk later apologized.
Turkish Lira skids past 5 to the dollar on USA sanctions news
Anticipation of the USA sanctions had already helped to send the Turkish lira to an all-time low against the dollar on Wednesday. On Wednesday, Erdogan accused the United States of having an "evangelist, Zionist mentality" and using "threat-filled language".
"Due to the density of the line and the relatively high downtime of the lifters, ramping [main general assembly line] GA3 became substantially more complicated than we had anticipated", the company noted. Musk and CFO Deepak Ahuja admitted that even production of the vehicle was plagued with problems; Tesla launched a new production line in a massive tent, shuffled its worker base, and worked round the clock to hit the 5,000-Model 3s-a-week target. Analysts polled by FactSet expected a $2.88 loss per share.
Net loss attributable to common shareholders for the April-June quarter amounted to $717.5 million, or $4.22 per share, which was more than some analysts expected.
Tesla also said it's working on a new version of its Autopilot semi-autonomous software that will have greater safety features.
During the second quarter, Tesla laid off 9 per cent of its workforce as it worked toward Mr Musk's promise of making money. Tesla has never posted an annual profit and has only had two profitable quarters since going public in 2010.
Tesla also faces broader challenges that could make its cars more hard to sell.