Business Corpus: Tesla First-Quarter Earnings Beat As Model 3 Production Holds SteadyTesla reported first-quarter earnings after the market close that topped estimates as it showed some consistency in Model 3 production. The post Tesla First-Quarter Earnings Beat As Model 3 Production Holds Steady appeared first on Investor's Business Daily.

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Tesla (TSLA) reported first-quarter earnings after the market close Wednesday that topped estimates as the car marker showed some consistency in Model 3 production.

The electric car company reported revenue of $3.41 billion. That beat analyst predictions for $3.2 billion, as polled by Zacks Investment Research. It reported an adjusted loss of $3.35 per share, beating estimates for a $3.37 loss.

Analysts polled by FactSet produced a different number, though. They expected Tesla to report a loss of $3.54 per share on revenue of $3.28 billion.

Tesla shares seesawed during after-hours trading on the stock market today. They were most recently near 301, down a fraction.

Third Week Over 2,000 Cars

In a letter to shareholders, the company said Model 3 production hit 2,270 per week in the last week of April. That was its third straight week over 2,000.

"We continue to target Model 3 production of approximately 5,000 per week in about two months, although our prior experience has demonstrated the difficulty of accurately forecasting specific production rates at specific points in time because of the exponential nature of the ramp," it said.

Model 3 net reservations continued to exceed 450,000 at the end of the first quarter.

Tesla said it ended the quarter with a cash balance of $2.7 billion. That's down from $3.4 billion in the fourth quarter. It plans to reduce capital expenditures to about $3 billion in 2018 from about $3.4 billion.

Capital Concerns

Analysts have increasingly expressed concern that Tesla will need to raise more funds in 2018 so it doesn't run out of capital.

If it executes according to plans, Tesla said it expects to achieve positive net income, excluding noncash stock based compensation, in the third and fourth quarter. It also expects to achieve "full GAAP profitability" in each of those quarters.

The company said demand for its flagship Model S and Model X "remains very strong" and expects to achieve a goal of 100,000 deliveries for the full year.

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The post Tesla First-Quarter Earnings Beat As Model 3 Production Holds Steady appeared first on Investor's Business Daily.