It's been another punishing quarter for Tesla which on Wednesday reported a net loss of $702 million for the first three months of 2019.
The result was a substantial step down from the $139.5 million profit reported in the prior quarter and a near match to the $710 million loss reported one year ago.
Worryingly, revenue for the quarter came in at $4.54 billion, which was substantially down from the $7.23 billion in the prior quarter. This was due to deliveries dropping 31 percent from the prior quarter, with the Q1 2019 tally coming in at 63,000 units, of which 50,900 were Model 3s and the rest made up by the pricier Model S and Model X.
Tesla Model Y
Tesla blamed internal delays and expects deliveries to bounce back next quarter. The company is confident of 2019's total coming in between 360,000 and 400,000 units due to deliveries of the Model 3 accelerating outside the United States. Further bright spots include plans to launch the Model Y and Semi in 2020 and starting production at a new plant in China as early as the fourth quarter of 2019.
The company is currently sitting on about $2.2 billion of cash and other liquid assets and expects to narrow its losses in the second quarter of 2019 and possibly even return to profitability by the third quarter.
Tesla on Wednesday also revealed plans for an insurance program that will be launched in about a month. Its pricing is expected to be determined based on driver behavior. The insurance program follows a new leasing program launched in April. Tesla also made mention in April of a fully automated ride-hail service, which CEO Elon Musk referred to as a “robotaxi.” However, such a service is likely years away from becoming a reality.