• About
    • Which Energy Mix is this?
  • Climate News Network Archive
  • Contact
Celebrating our 1,000th edition. The climate news you need
No Result
View All Result
The Energy Mix
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
No Result
View All Result
The Energy Mix
No Result
View All Result
  FEATURED
Ex-Fossil Workers Convert Old Oilfields to Solar Farms After ‘Rapid Upskilling’ in Alberta June 29, 2022
London Becomes Biggest City to Sign Fossil Fuel Non-Proliferation Treaty June 29, 2022
G7 Miss ‘Golden Opportunity’, Walk Back Pledge to Cut International Fossil Finance June 29, 2022
Soaring Fertilizer Prices Could Deliver ‘Silver Lining’ For Emissions, But Farmers Struggle to Limit Use June 26, 2022
BREAKING: UN Nature Summit, the ‘Paris Conference for Biodiversity’, Moves to Montreal in December June 19, 2022
Next
Prev
Home Demand & Distribution Auto & Alternative Vehicles

Stock Falls 5% as Tesla Reports Rapid Growth, $267-Million Loss

February 24, 2017
Reading time: 2 minutes

Harani0403/WikimediaCommons

Harani0403/WikimediaCommons

 
Harani0403/WikimediaCommons

Tesla Inc. saw its stock fall 5% this week after reporting a $266.7 million operating loss on revenue of nearly $2.3 billion in the last quarter of 2016.

The company also announced that CFO Jason Wheeler is leaving the company, with various news reports pointing him toward another private sector job or a “public policy” position as a lobbyist.

Although Tesla’s revenue grew “a phenomenal 88%” in Q4 compared to the previous period in 2015, “investors have little hope of profitability in the first half of the year,” Seeking Alpha reports. “Tesla is taking on large capital expenses to support the Model 3 production ramp and to build out support infrastructure,” and even so, it’s considered unlikely the company will meet its target of producing 10,000 Model 3s per week in 2018.

Seeking Alpha digs into the company’s quarterly financial report, describing it as “just plain ugly. Scary ugly.” Revenue was down 1% from Q3, auto production was off slightly to 24,882 vehicles, expenses were up 27%, and only some of the added cost was attributed to Tesla’s SolarCity acquisition, “so the worst is probably yet to come.”

“Tesla said in a letter to shareholders that automotive gross margins declined for three reasons,” CNBC reports. “First, it was hurt by some delays in the deployment of premium updates to its auto-pilot software. Secondly, it suffered from unfavourable foreign exchange rates, and third, it had an increase in the sale of fixed assets,” related to its preparations for Model 3 production.

Yet CEO Elon Musk said the company still plans to ramp up production, invest US$2 to $2.5 billion in the first half of this year to support its Model 3 launch, and choose sites for three more battery gigafactories.

“How does Tesla afford all this when it’s bleeding cash?” asks analyst Mark Hibben. “Cash consumed in operating activities was $448 million in Q4. Can you say capital raise? Elon can, and he did during the conference call. He couched it in terms of wanting to ‘minimize risk.’”

When an analyst asked how the company would increase production from 2,000 to 10,000 vehicles per week over such a short span, “Musk hemmed and hawed,” Hibben adds. “The fact is that no one will really know how fast Tesla can produce the Model 3 until it starts to produce them.”



in Auto & Alternative Vehicles, Climate & Society, Community Climate Finance, Demand & Distribution, Jurisdictions, United States

The latest climate news and analysis, direct to your inbox

Subscribe

Related Posts

Keith Hirsche
Jobs & Training

Ex-Fossil Workers Convert Old Oilfields to Solar Farms After ‘Rapid Upskilling’ in Alberta

June 29, 2022
346
London Eye UK England
Cities & Communities

London Becomes Biggest City to Sign Fossil Fuel Non-Proliferation Treaty

June 29, 2022
103
Number 10/flickr
International Agencies & Studies

G7 Miss ‘Golden Opportunity’, Walk Back Pledge to Cut International Fossil Finance

June 29, 2022
116

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

Keith Hirsche

Ex-Fossil Workers Convert Old Oilfields to Solar Farms After ‘Rapid Upskilling’ in Alberta

June 29, 2022
346
François GOGLINS/wikimedia commons

Corrosion Problem Shutters Half of France’s Nuclear Reactors

June 29, 2022
131
David/flickr

U.S. Supreme Court Expected to Gut Emission Controls as Climate Scientists Petition for Plan B

June 26, 2022
1.2k
Number 10/flickr

G7 Miss ‘Golden Opportunity’, Walk Back Pledge to Cut International Fossil Finance

June 29, 2022
116
London Eye UK England

London Becomes Biggest City to Sign Fossil Fuel Non-Proliferation Treaty

June 29, 2022
103
Danielle Scott/flickr

Advocate Urges Ottawa to Intervene Before Ontario Builds Highway 413

June 29, 2022
87

Recent Posts

AJEL / Pixabay

Windfall Tax on Food, Fossil, Pharma Giants Would Raise $490B to Solve ‘Catastrophic’ Food Crisis: Oxfam

June 29, 2022
48
futureatlas.com/flickr

Ottawa Demands Deeper Fuel Emissions Cuts, Offers Fossils a Double-Dip on Tax Breaks

June 29, 2022
72
Province of B.C./flickr

Comox Joins Municipalities Seeking Ban on New Gas Stations

June 29, 2022
58
/Piqsels

Refocus Agriculture Spending to Cut Emissions, Boost Productivity, OECD Urges Governments

June 29, 2022
25
Jimmy Emerson, DVM/flickr

Public Vigilance Key to Protecting Greenbelts for Climate Resilience, Report Finds

June 29, 2022
29
Miguel V/Wikimedia Commons

Forests Fall Short of Full Carbon Storage Potential, Study Finds

June 29, 2022
46
Next Post
Calm before the storm … the Labrador Sea in the North Atlantic. Image: Algkalv via Wikimedia

Stark warning on Atlantic cooling

The Energy Mix

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Navigate Site

  • About
  • Contact
  • Privacy Policy and Copyright
  • Cookie Policy

Follow Us

No Result
View All Result
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}