Tesla takes huge losses - and she wants to create her own car insurance


Tesla takes huge losses - and she wants to create her own car insurance
Tesla takes huge losses - and she wants to create her own car insurance

Tesla slips deep into the red again.

 But Elon Musk wants to catch up with everything by the end of the year - and offer his car insurance.
San Francisco, California, Tesla, the leading car manufacturer, ended the first quarter of 2019 with a surprisingly high net loss of $ 702 million.
 If CEO Elon Musk expected a small profit at the end of 2018,
He later corrected this to a possible loss.
Ultimately, the delay in the current Model 3 led to hope, lower prices and lower delivery for the best S and X models led to a sharp drop in sales and one of the highest quarterly losses in the company's history. Tesla returned where it started twelve months ago: a year ago, the loss reached $ 709 million.

At the end of March, 63,000 vehicles were delivered, well below expectations for 76,000. Misk said of delivery problems to Europe and China: "It was the most difficult logistical problem I've ever seen."

Analysts are closely monitoring Tesla's financial situation

Difficult production and tough deliveries: The S and X models together had 12,000 good units, well below the quarterly average of 25,000.
At $ 4.54 billion, sales were well below expectations of $ 5.19 billion.
Car sales reached $ 3.72 billion, up 36 percent from last year, but 41 percent less than the fourth quarter of 2018.



Analysts are closely monitoring the car maker's financial situation.
At the end of 2018, cash and cash equivalents reached $ 3.7 billion, and $ 2.2 billion remained at the end of March.
 Nearly a billion dollars of this went into cash payment for a convertible bond. The share price was so low that it was not worthwhile for bondholders to demand shares instead of cash.
Other debt of $ 180 million will be due in April.


However, analysts still believe Musk must enter the capital market to finance expansion. Tesla CEO, in turn, stresses that the financial situation is not tense. However, Musk acknowledged in the analysts' talk that it might be "logical" to go to the capital market.

Since Model 3 from the Chinese factory will be produced much cheaper than California, parts of the planned Model Y, SUV production can also be transferred to China or Renault in Nevada.

In the short term, there is no respite for Tesla investors. It is said that the current second quarter should also end in loss, before rising again in the second half. Previous annual targets delivered 400,000 vehicles will remain unchanged.

Misk answered an analyst's question about whether Tesla plans to provide insurance for its customers.
They are already working on it. Prices will be very "competitive". Tesla said it has almost all vehicle data, driving and driver behavior in real time and this will also take into account when calculating rates.
Tesla is already supplying some insurance companies with some data. "We have full access to the driver risk profile," Musk said.

Tesla generally views the dramatic quarter. Price cuts were announced and partly revised a few days later. It was briefly said that most of the shops would be closed, and after a few days it was withdrawn as well. Elon Musk himself caused a dispute with the stock exchange about his habits on Twitter.