Tesla Inc reported quarterly earnings that doubled on Wednesday and a loss that was the automaker’s biggest ever, but its shares increased after revealing over 1,800 daily bookings for the Model 3 and forecasting increased Model S deliveries in the 2nd half of this year.
Shares increased as much as 8 percent to $351.67 in late trade.
In spite of a caution by CEO Elon Musk recently that the Silicon Valley automaker would deal with six months of “manufacturing hell” in order to produce its first Model Threes, investors were enthusiastic about remaining $3 billion money on hand at the end of the 2nd quarter, as loss-making automaker invested simply shy of $1 billion on capital investment, less than anticipated.
But given the continued build-out of the Fremont factory and Tesla’s Gigafactory battery plant located in Nevada, the possibility of ongoing cash burn is high. Tesla stated it is thinking of $2 billion in capital spending in the second half of the year, which would deteriorate its money cushion to about $1 billion.
Musk, nonetheless, informed experts that the company was thinking about financial obligation to broaden cash on hand, “but not thinking of a capital raise.”
CFO Deepak Ahuja stated the automaker’s spending was at “historical highs,” totaling up to over $100 million weekly.
Model S demand was boosting, Tesla said, including that Model S and X shipments would boost in the 2nd half of this year.
Musk said financiers must have “absolutely no issue” that Tesla would cannot reach its production target of 10,000 automobiles weekly by the end of 2018.