Tesla quarterly revenue doubles and shares rise 8%
Despite spending $100m a week, with more than 1,800 daily reservations for the Model 3, Musk says investors should have ‘zero concern’
San Francisco — On Wednesday, Tesla reported quarterly revenue had doubled — and a loss that was the electric car maker’s largest ever — but its shares rose after revealing more than 1,800 daily reservations for the Model 3 and predicting increased Model S deliveries in the second half of 2017. Shares rose as high as 8% to $351.67 in late trade. Despite a warning by CEO Elon Musk last week that the Silicon Valley car maker would face six months of "manufacturing hell" in producing its first Model 3s, investors were enthusiastic over a remaining $3bn cash on hand at the end of the second quarter, as loss-making Tesla spent just shy of $1bn on capital expenditures, less than expected. Still, given the continued build-out of the Fremont factory and Tesla’s Gigafactory battery plant in Nevada, the possibility of continued cash burn is high. Tesla said it plans $2bn in capital expenses in the second half of the year, which would erode its cash cushion to about $1bn. Musk, however, told a...
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