So Elon Musk predicted this would happen. But for Tesla employees and shareholders, it doesn’t make it any easier. Tesla starts 2019 in red. Deep in the red.
So to be frank, Tesla lost $702 million in Q1 2019. That breaks down to $4.10 a share. Yes, Musk and other Tesla leaders braced for a loss this quarter. However, nobody saw this big of a profit loss coming. They blame poor sales and deliveries of their latest tech-friendly cars. These cars include the Model 3’s, Model S’s, and X SUV’S. In fact, they only sold 63,000 eletric vehicles overall. That’s a more than 30% drop from Q4 2018.
Also, Musk himself sites delivery problems for their turbulent start to this year. In fact, the first quarter seemed so hopeless that they focused shipping to the second quarter. They even delayed some shipping. But they do expect the second quarter to be better, but they don’t see themselves breaking even. They don’t expect that to happen until Q3 2019. Let’s face it. The Q2 profits can’t get much worse. If you’re thinking of investing in Tesla stocks, then think hard about that. Because as of today, they hover at $255 a share. That sounds like a lot. But compare that to $376 a share back on Dec. 14, 2018.
However, this won’t deter Musk from other products. This includes custom built computer chips and robotaxi’s. And of course, there’s that whole sending people to Mars and The Moon project. Now I see how some are hitting the panic button on their IT support hero Elon Musk. But I’m not. Because everybody has setbacks. No matter how good they are or how successful they are. Also, keep in mind the e-car is still a relatively new concept. Yes, it’s a hot new concept, but new nonetheless. Tesla starts 2019 in red. Do you think they will stay there, and if so, then how long?