Shares of Tesla, which rose almost 4 percent in Wednesday trading, lost the gain after hours when the price fell almost 5 percent to $294.20. Zach Kirkhorn, the company's vice president of finance, will replace him as CFO. Musk Elon also bought $10.00M worth of Tesla, Inc. Its pricing is expected to start at around $40,000 for the base model.
Musk said that the company heavily focuses on improving services in North America after fix delay and poor customer service complaints came to the fore.
Tesla was expected to enter India with the Model 3 that sells for almost $35,000. Musk, who has often set deadlines that are not met, said he expects to hit that rate by the end of 2019.
According to Tesla, the company delivered 63,359 Model 3 vehicles to North America customers in the fourth quarter of 2018. Musk says getting the Shanghai factory online is the "biggest driver" in getting to 500K+ per year.
"This is a strong indication that demand in the U.S. for both the mid-range and long-range Model 3 versions has largely been exhausted, and the company is still working through the estimated ~6.8k of unsold Model 3 inventory", Cowen analysts said. "The inhibitor is affordability".
Musk announced a 7 percent workforce reduction earlier this month, saying it was crucial to cut costs so that the company could roll out lower-priced versions of its Model 3.
The cheapest Model 3s are now selling for about $44,000, but Tesla has long promised to make a $35,000 version available. "Tesla will be there as soon as he believes we should", added Musk, also the SpaceX founder.
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Tesla expects to increase Model 3 production volumes at its Fremont factory throughout 2019 until reaching a sustained rate of 7,000 units per week by the end of the year.
Tesla said it ended the quarter with $4.3 billion in cash and said it could pay a $920 million convertible bond maturing in March.
"Tesla has a fantastic brand, and by all accounts a fantastic product, but we're anxious it's also fantastically expensive", said Nicholas Hyett, Equity Analyst at Hargreaves Lansdown.
Musk predicted that 2019 would be "an awesome year for Tesla", and that the days of Tesla reporting losses are in the rear-view mirror. "Tesla has had two great quarters of profitability and cash flow, it's on a really solid foundation", Ahuja said, thus burying India's Tesla dream once again.
Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally.The firm is worth $52.73 billion.
Asked about Model 3 reservations, Ahuja said that number was "not relevant".
Some analysts suspect Tesla to swing between profits and losses in the future as it tries to bring Model 3 costs under control.
For the fourth quarter of 2018, Tesla posted profits of $139 million with revenue of $7.2 billion, the highest ever for the company.