Tesla shares clinch best day since November 2015 after Elon Musk's comments at shareholder meeting
Tesla First Quarter 2018 Update
Model 3 production hit 2,270/week in April for the 3rd straight week over 2,000
Q1 Auto GAAP gross margin up sequentially by 80 bp and non-GAAP by 500 bp
Cash balance of $2.7 billion at the end of Q1
2018 Capex projection reduced from >$3.4 billion to <$3 billion
Expecting positive GAAP net income and positive cash flow in Q3 and Q4 2018
"We made significant progress on the Model 3 ramp in the second half of Q1, and the momentum continued into early Q2. Prior to a planned shutdown in mid-April to further increase production, we produced more than 2,000 Model 3 vehicles for three straight weeks, and we hit 2,270 in the last of those weeks. Even at this stage of the ramp, Model 3 is already on the cusp of becoming the best-selling mid-sized premium sedan in the US, and our deliveries continue to increase. Consumers have clearly shown that electric vehicles are simply more desirable when priced on par with their internal combustion engine competitors while offering better technology, performance and user experience.
If we execute according to our plans, we will at least achieve positive net income excluding non-cash stock based compensation in Q3 and Q4 and we expect to also achieve full GAAP profitability in each of these quarters. This is primarily based on our ability to reach Model 3 production volume of 5,000 units per week and to grow Model 3 gross margin from slightly negative in Q1 2018 to close to breakeven in Q2 and then to highly positive in Q3 and Q4. Ultimately, the growth of Model 3 and the profit associated with it will help us accelerate the transition to sustainable energy even faster. "
SEEKING ALPHA: Elon Musk: Happy Chasing Moonshots, Not Profits. Profitability isn't a top priority for Tesla's CEO. Working on technologies that advance humanity is.
TESLARATI: Tesla shareholders vote in favor of keeping Elon Musk as Chairman
FORTUNE : 5 Things to Expect at Tesla's Shareholder Meeting Today