Tesla's second super factory, with a net loss of $785 million in the first quarter of 2018, will be in China

With an average cost of $6,500 per minute, Tesla still hasn't produced a decent report card because of the production hell of Model 3. In the early morning of Beijing time on the 3rd, Tesla announced the first quarter of fiscal year 2018. Although revenue increased, a record quarterly loss of $785 million was recorded. Looking back on Tesla's 15-year history, loss seems to be synonymous with it, but when the combination of Iron Man and Tesla appears in front of the world, financing seems to be no longer a concern.

Where did you go

Results showed that the Tesla first quarter gross margin of $457 million, less than $668 million over the same period last year, and its net loss of $785 million, and expanded almost double than the same period last year. The good news is that Tesla finally saw some light in the darkness. Tesla fiscal 2018 first quarter revenue reached $3.41 billion, but analysts had forecast is $3.32 billion. Better news is that, due to the yield increase Model3 models, Tesla is expected in the second half of the year end burn patterns to profitability, cash flow will be from negative to positive.

Model3 production in the middle of April after the upgrade is complete, has reached the highest 2270 cars a week. This means that Tesla's profit targets have with Model3 output can achieve expected firmly tied together. But it seems to have spawned another problem, if you want to continue to improve Model3 models of production, it must raise more capital.

Ongoing financing Tesla has always walk not red, it makes one wonder whether musk spend money where, and the answer may be hidden in Model3.CNBC reported, for the improvement of yield Model3, Tesla will produce Model3 Fremont, California, USA, and the factory The battery The plant no. 1 continuous into cash. In addition, according to the musk, according to internal emails sent to the employee Fremont factory will run all-weather, and increase employee, shift work and paid to employees more overtime, etc., all adds to the cost of the Tesla. At present, the company has nearly 40000 employees.

The place of another big money inevitably fall on the battery. The Tesla's ace Model3 bookings has been more than 450000 vehicles, although Tesla continued losses, but Tesla's battery supplier made. Panasonic, for example, as a Tesla battery supplier only stage, Tesla by Panasonic scored at least more than 50% of the profits. It is understood that the Tesla supply Models of P85 battery costs $35360, compared with $ModelS85070 prices, battery costs become Tesla ill-defined pain.

The firm investors

Loss of 15 years in a row, multiple renege Model3 production problem let Tesla appear stretched, but Tesla seems still standing. Capital market why bosses have a special liking to Tesla confusing, and China's tencent is the one member of the "leave investment team". But if from the point of Tesla's current situation, the significance of the gamble seems it is not difficult to understand.

Model3 market the most attention, for example, in the previous three weeks, Model3 has held steady in perinatal rate of more than 2000 units, and the frequent appearance of new products to market demand for Model3 rising, order quantity gradually warming.

Musk is a magic weapon of the production factory, this continuous iterative upgrade pattern let people see the Tesla. Came in February this year, Tesla developed in Germany, the key production line can effectively promote the Model3 capacity of news make people more confident about Tesla's, when the factory and the product have the same version upgrades and production mode of evolution may, as the bottom in the process of production is also the biggest manufacturers of the components is likely to bring a more significant effect.

The development of Chinese auto industry consulting company, chief analyst at jia xinguang to Beijing commercial daily reporter, Tesla is facing manufacturing system of comprehensive problem: to design a good car at the same time also can make the car. Now, a lot of Tesla's product innovation, and every step go is very solid, the most important thing is what Tesla create and completely is not a concept of "PPT making cars", Tesla's goal is to make a change of human things, he is the representative of the American dream. Tesla's point of view in order to build a car and building cars, rather than a circle."A lot of people to Tesla building cars are all have certain beliefs, it is not a simple problem of profit or not", "Mr. Jia concluded.

China factory is near

The results of the meeting in the day, Tesla also announced an important message. Musk, according to the fourth quarter of this year will be released before the second super factory, this factory will be built in China, all future super factory in addition to build the battery, will auto manufacturing. At the same time, musk also for the Chinese government expressed gratitude allows wholly foreign-owned factories measures.

On April 17, China's national development and reform commission announced the schedule liberalization of foreign investment stake in the auto industry, including the foreign shares of the new energy automobile restrictions will be this year. Earlier, in the world's largest car market, the Chinese government regulations, foreign automakers only through joint ventures, and holding up no more than 50%.

In September last year, Wall Street investment bank piper jaffray, one analyst said given Tesla's performance in China, is expected in the future China will become the Tesla's biggest market. Data for the budget a foothold, in 2017, Tesla 14883 electric cars were sold in the Chinese market, account for 3% of the electric vehicle market in China, market ranked the tenth. And bloom berg, according to the data from 2017 from the China market revenue accounted for about 17% Tesla's total revenue. The Tesla submitted to the securities and exchange commission, according to a document of the company in 2016 in the Chinese market sales have surge to $1.07 billion from $2015 in 319 million.

Jia xinguang thinks, Tesla factories in China to prove the Chinese market for it is a very important part of, and behind it a big reason is that China's demand, and the same products in China, Model3 relatively high cost performance, to China after the price advantage to quickly open the consumer market, coupled with the Chinese consumers for Tesla product high recognition, Tesla is expected will obtain a supernormal development in the Chinese market.

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