The entrepreneur revealed the shocking statistic during Tesla’s latest quarterly earnings call.
“We now see TSLA needing to raise capital in 1Q18E (vs. 2Q18E previously) and continue to see downside risk to Model 3 production”, Goldman analyst David Tamberrino wrote Thursday.
Tesla’s shares rose as much as 5 percent in after market trading.
Tesla reported a $336 million loss in the second quarter, roughly 15 percent larger than the same period past year, or $2.04 per share.
The company reported overall growth in its operations. “If you go to our stores, we don’t even want to talk about it, really, because we want to talk about the thing that we can supply”, Musk said on a company earnings call with analysts on Wednesday, Aug. 2. Company revenues for the quarter were $2.79 billion, more than double last year’s second quarter revenues. According to Tesla, the Model 3 is now averaging more than 1,800 net reservations each day; this is after last week’s event where they handed over the first 30 keys for the first 30 Model.
The company observes the strong demand as some sort of mixed blessing on its part as it struggles with scaling up production.
Musk said that Tesla learned a lot of lessons from the previous models and they are going to apply what they learned in the Model 3.
Tesla has consistently lost money because of heavy spending on research, product development and equipment for its assembly plant in California and its battery factory in Nevada. The automaker has reservations for about 455,000 Model 3s, with new orders coming in at the rate of about 1,800 per day since its gala unveiling last Friday, when Tesla provided early first drives of the auto. That’s $2.4 billion larger than second-place AT&T’s short interest.
These worker issues, as well as a lack of transparency into the raise and performance evaluation process, are important to remedy as Tesla faces increasing pressure to meet its ambitious goal of producing 5,000 cars a week by the end of 2017.
Still, some Wall Street analysts question the overall fundamental viability of the company and began to hit the breaks on Tesla bulls. There is also concern that Model X sales are starting to stagnate.
Tesla is also gaining some ground in the marketplace. From the Roadster to Model X and Model S they changed a lot of concepts in our minds about cars.