Tesla CEO Elon Musk's $5 Billion Apology Tour

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Tesla burned through $739.5 million in cash last quarter as it geared up a factory to crank out more electric cars, leading to a $717.5 million net loss.

Telsa's shares jumped 9.3 per cent to $US328.85 in after-hours trading on Wednesday.

The company has yet to turn a profit but this quarter's loss is more than twice as high as in the second quarter a year ago.

Tesla ended the second quarter with $2.78 billion in cash after spending $610 million in capital expenses.


On the conference call accompanying the results, Tesla chief executive Elon Musk said he expected the company to avoid going back to the markets for capital and to be "essentially self-funding on a go-forward basis".

Last quarter, Musk mistreated two analysts by calling their queries about the company's cash needs and Model 3 orders "so dry" and "not cool". The 47-year-old Musk also delivered for the supporters who called for him to show more poise and execute after months of distracting and destructive behavior.

This quarter, not only was Musk's tone non-confrontational, but he apologized to both analysts. "Hope you accept my apologies".

With new heights in weekly production being targeted, Tesla expects to produce between 50,000 and 55,000 Model 3 vehicles in the third quarter.


Tesla CEO Elon Musk stated on Twitter that the company will add a number of classic Atari games to the software in its electric cars. After Tesla produced 5,000 per week in July following several delays in reaching that target, analysts were concerned whether it could maintain the production rate.

"We like the more muted tone of the company's outlook, with the absence of unnecessary new stretch goals", said CFRA analyst Efraim Levy.

Tesla spent millions as it reached a goal of producing 5000 Model 3 sedans per week by the end of June. He has run into trouble for snubbing Wall Street analysts to disparaging journalists critical of the company, and also for recently abusing a British caver who helped rescue 12 boys from a flooded Thailand cave.

During the second quarter, Tesla laid off 9 per cent of its workforce as it worked toward Mr Musk's promise of making money.


Tesla ended June with about $2.2 billion in cash, the least it's carried since the first quarter of 2016.

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