They had risen after the company reported a loss of $567.9 million, in line with analyst forecasts though still higher than the previous quarter and more than the same time a year ago. And more skepticism is drawn from recent challenges, which include criticism of its product quality after a recall of over 100,000 units of Model S due to faulty power steering and fatal Model X autopilot crash and a fresh $2 billion patent infringement lawsuit filed by startup Nikola. But the company rushed its Model 3 to market, making mistakes in manufacturing whose effects are now being felt, and investor scepticism has risen. When we first heard about the Model 3, Musk said future cars - the Model Y included - would use the same architecture to cut costs and production time. CEO Elon Musk claims a production rate of 5,000 per week will bring the company to a cash flow positive state. He said recently that he occasionally sleeps on the factory floor. The company reached a peak of 2,270 Model 3s produced during the last week of April. Revenue exceeded estimates of $3.28 billion. For the past couple, Musk has been emphasizing on hitting production goals before the company can begin to make a profit if the expenses are in line. Musk said Tesla is "well positioned" to have "millions, really tens of millions" of shared autonomous electric vehicles on the road.
Investors were none too happy either.
Amid a similar call, Musk uncovered Tesla set up together 2,270 Model 3s every week a month ago, which was far beneath the vital 5,000 week by week autos that would've influenced the organization to income positive.
Mr Musk has also made the unusual admission that automation is overrated and more humans are needed to build the cars.
Three dead as protests on Gaza border turn violent
In a statement Thursday, the Israeli military said "the circumstances regarding the injury of Ahmed Abu Hussein will be examined". Hamas' Interior Ministry announced that Egypt had agreed to open the Rafah border crossing for three days, beginning Saturday.
During the latest conference call the Tesla chief also hit out at the media, calling journalists "irresponsible" for writing about the dangers of autonomous vehicles. The cash burn could put pressure on the company to borrow more or sell additional shares to raise more cash. Despite the healthy revenue increase, the company's loss almost doubled from last year's $392.7 million. Standard & Poor's also has warned of the possibility of a downgrade.
The California-based company's shares fell 5 percent following Musk's odd, vaudeville-like, discussion with reporters.
Brinkman kept his Underweight rating on Tesla following the results, which JPMorgan said were marked by better-than-expected revenue, margin and earnings, but accompanied by a bigger-than-expected cash outflow.
The company said it ended the quarter with $3.2 billion in cash after spending $655.7 million in quarterly capital expenses.