Electric car maker Tesla Motors Inc brushed off a big first-quarter loss and cheered investors with news that it plans to accelerate its production plans.
Tesla’s loss rose 84 percent to US$282 million in the first quarter as it struggled with parts delays for its new Model X sport utility vehicle. The company’s stock-based compensation costs also more than doubled during the quarter to nearly US$90 million.
The loss of US$2.13 per share far exceeded Wall Street’s forecasts. Analysts polled by FactSet expected a loss of US$0.87 per share.
However, Tesla shares jumped 3 percent to US$229.48 in after-hours trading after the company said it is pushing ahead its plan to make 500,000 vehicles per year to 2018, two years earlier than scheduled. That would be up from 50,000 vehicles last year.
Tesla said it remains on track to deliver 80,000 to 90,000 vehicles this year after resolving the Model X production issues.
It also reaffirmed that production of the lower-cost Model 3 car is to start next year.
Tesla has set July 1 next year to start production of the Model 3 and wants to make 100,000 to 200,000 cars in the second half of the year.
Tesla chief executive officer Elon Musk said he celebrated the first flawless production of a Model X at 3am on Friday last week — eight months after the company started deliveries to customers.
He said that the Model X — with its gull-wing doors and free-standing rear seats — is much more complicated than the Model 3, so industry watchers should not assume the company would have similar production problems.
Tesla would also be tougher on suppliers who cannot meet its deadlines, he said.
“No element of Model 3 can be approved unless manufacturing says it’s easy to manufacture,” Musk told analysts during a conference call on Wednesday evening.
Tesla unveiled the Model 3 on March 31. With a starting price of about US$35,000, it is to be the most affordable car in the company’s 13-year history.
Tesla said more than 325,000 people put down a US$1,000 deposit to reserve the car in the first week after the unveiling.
Musk said customers should order now if they want to receive their car in 2018.
Tesla delivered 14,810 Model S sedans and Model X sport utility vehicles in the first quarter. That was lower than expected, largely due to the Model X delays. However, it was still a 48 percent increase in deliveries over the same period last year.
The firm’s first-quarter revenue rose 22 percent to US$1.1 billion.
The company said Model X prices — which start at about US$80,000 — were about 30 percent higher than for the Model S.
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
INSULATED: The company said it is less exposed to global complications, as it has built a strong footprint worldwide, and has multiple sources of rare earths and raw minerals Merck Group yesterday said it would ramp up production next year at its new flagship facility in Kaohsiung’s Lujhu District (路竹) to satisfy growing demand for advanced semiconductor materials and specialty gases, and to address supply resilience issues amid mounting geopolitical risks. Merck made the remarks during a news conference before the inauguration of its 500 million euros (US$582.1 million) facility, which is also to supply other markets in the Asia-Pacific region, it said. Merck executive board deputy chair and electronics CEO Kai Beckmann told reporters the company adopted a “local-for-local” strategy about seven years ago to address the cycle time of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
RIDING THE WAVE: The race to build AI infrastructure has lifted the valuations of top memory makers, such as Micron, amid dwindling inventories and supply challenges Micron Technology Inc is to spend ￥1.5 trillion (US$9.6 billion) to build a plant in western Japan to make memory chips for artificial intelligence (AI) applications, the Nikkei reported on Saturday. The move comes as Micron seeks to diversify advanced chip production outside of Taiwan, the Nikkei article said, citing people familiar with the matter. The new factory will manufacture high-bandwidth memory (HBM) chips, a key component for working with AI processors such as those made by Nvidia Corp, the report said. Micron would build the facility within the compound of its Hiroshima plant, starting in May next year, with plans to launch
RSS