"This is the best I've ever felt about Tesla", Musk told investors during an earnings call Wednesday after markets closed.
The Silicon Valley company's mission to provide cheap Model 3 vehicles caused Teslato plow through more than $1 billion in cash during the last quarter of 2017.
The company's net loss attributable to shareholders widened to $US336.4 million in the second quarter ended June 30, from $US293.2 million a year earlier.
In contrast, the market handed Tesla a 5% loss after first-quarter results back in May, and a 6.4% loss after fourth-quarter 2016 results in February. The news, announced in an earnings call Wednesday, is a reversal from several months ago, in which Musk claimed the all-electric compact SUV would be "completely different" from anything Tesla has produced before.
Around 63,000 people have cancelled their Tesla Model 3 pre-orders, with the total number of existing customers hovering around the 455,000 mark.
So, why the Tesla model 3 is important and what concepts it is going to change? "That's the one part of the financials that are a little bit troubling".
Tesla is still burning through huge amounts of cash.
As production improves, the non-GAAP Model 3 gross margin should be positive in the fourth quarter, Teslasaid, eventually growing to 25 percent in 2018.
In the wake of last week's Tesla Model 3 hand-off event, it's no surprise to see a torrent of buzz around the new EV and a surge in consumer interest. That may not be enough for many customers, especially those who prefer a auto with a longer range. The company bought solar panel maker SolarCity late previous year and said it began taking orders for its new solar roof tiles in the second quarter and recently began installations.
Yesterday, during its second quarter earnings, the electric auto maker Tesla Inc (NASDAQ:TSLA) tried to put to rest all fears of a slowdown around its existing luxury cars, Model X and Model S. For a while now, investors and analysts have been expressing fear about a slowdown in demand especially of the luxury sedan Model S. Sales of Tesla's Model S luxury sedan appear to have peaked in 2015 Q4. Now, on a 2 August conference call with analysts, Musk said he was talked down by his team and hopes to get the new vehicle to market more quickly.
While the base Model 3 will be $35,000, considerably cheaper and with fewer features than the Model S, which runs just over $70,000, there is considerable room to upgrade the Model 3, and raise the price.
"What we have ahead of us, of course, is an incredibly hard production ramp", Musk said.