"I'm pretty excited about how we're designing Model Y. It's really taking a lot of lessons learned from Model 3 and saying how do we design something to be easy to manufacture instead of how to manufacture or hard, really", Musk said.
Investing.com analyst Clement Thibault said the reduction was noteworthy, "but in the long run given challenges that lay ahead of Tesla, I don't think it is going to make or break the company". In fact, he said exactly that on a conference call to talk about Tesla's first-quarter results Wednesday.
When Joe Spak, an RBC Capital Markets analyst who rates Tesla the equivalent of a hold, asked Musk how many Model 3 reservation holders were actually taking the step to configure their vehicle when invited to do so, a long pause followed. But the damage had been done, in what at first looked like a holding-pattern quarter in which Wall Street could reward Tesla for losing a bit less than expected and turn its attention to assessing Musk's ability to wrangle Tesla's ambitious Model 3 production goals - 5,000 units weekly by the end if June - and digest his insistence that it wouldn't need to raise new funding in 2018.
Around that same time, Tesla's share prices slumped in after-hours trading by as much as 5.7 percent. That's Tesla's first mass market auto with a starting sticker price of $35,000, and its success is considered key to the company's business model.
Tesla had $2.67 billion in cash on hand at the end of the first quarter, down from the $3.37 billion at the end of past year. Say what you will about short-term thinking - quarterly results at least provide us with a sort of pulse on a company's health.
The company said it will reduce capital spending for 2018 from $3.4 billion to $3 billion. Current Model 3s typically start at almost $50,000, but a version of the Model 3 that will come with a $35,000 sticker price is expected to be available next year.
"Excuse me. Next. Boring, bonehead questions are not cool". The company reached a peak of 2,270 Model 3s produced during the last week of April.
While Tesla's battery module line was the main issue plaguing output for months, that has been resolved, according to the company.
Musk also extended Tesla's gratitude to the Chinese government over its decision to lift ownership restrictions for factories operated by foreign vehicle manufacturers. Q1 automotive revenue rose only 1% from the prior quarter to $2.74 billion. For the next financial year, analysts forecast that the firm will report sales of $26.08 billion per share, with estimates ranging from $20.75 billion to $34.82 billion.
Excluding items, adjusted loss for the quarter were USD3.35 per share, compared to USD1.33 per share previous year.
The CEO also confirmed that Tesla doesn't plan to manufacture the Model Y at its Fremont factory and that it will instead announce a new factory location "no later than in the fourth quarter", which mean that it should be confirmed by the end of the year.