Tesla burns $US740m in cash on way to loss

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This quarter, not only was Musk's tone non-confrontational, but he apologized to both analysts. Musk also took time durin. Previously, he insulted some analysts - turning off investors and shareholders, and knocking $2 billion off the company's market cap.

But the company has a track record of missing its goals, and there remain big questions around Tesla's ability to scale production and compete with electric cars from other auto manufacturers. "As a result, we expect to hit this rate sometime next year". 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. After struggling mightily to mass-manufacture a vehicle for the first time, the company is gaining momentum with the Model 3 sedan that's critical to its bid to start making money.

Shares of the company rose 10 percent to $331 before the bell. The Model 3 was originally hailed as affordable at $35,000, but Tesla is only selling higher-end versions of the auto at the moment.

Adjusted for stock-based compensation, the company lost $3.06 per share.

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The saving rate fell to 6.8 per cent from 7.2 per cent. "Look at the average for the first two quarters, it's now 3.2 percent". After- tax incomes adjusted for inflation increased at a 2.6 percent annual pace, after 4. 4 percent in the prior quarter.

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But as I've said on past calls, we're investing so much in security that it will significantly impact our profitability. The company also reported a second-quarter profit of $2.5 billion (roughly Rs. 17,100 crores), its largest ever.

The company said it has cut back on capital spending by changing its strategy to produce the Model 3 on existing assembly lines, one in a giant tent, rather than adding all-new lines. That was worse than Wall Street estimates. Analysts expected a loss of $2.92 per share on revenue of $3.92 billion. Tesla projected total 2018 capital spending at just below $US2.5 billion. Many analysts have questioned how long he can stay insistent, citing lingering doubts that the company can sustain higher Model 3 production levels and afford to pay off some of the liabilities looming on its balance sheet.

Tesla also said it was working on a new version of its Autopilot semi-autonomous software that would have greater safety features. The CEO carried out a reorganization last quarter and announced that 9 per cent of the company's workforce would be dismissed.

The Model 3 was initially a bone of contention for Tesla as the company was struggling to turn a profit and was losing money on every Model 3 unit it shipped.