The value of Tesla Inc. stock plunged by about $5.4 billion over a 48-hour period this week as the company declared a large quarterly loss and finally acknowleded that deliveries of its high-volume Model 3 will be delayed by at least 6 months.
Tesla (OTC: TSLA) has only made a profit in one quarter of its 14-year existence, and that was only due to selling federal and state tax credits to traditional auto manufactures and others that actually do make taxable profits.
Although Tesla’s $2.98 billion third quarter revenue slightly beat Wall Street analysts’ estimates, the company lost $671 million, or $2.92 per share. That was twice the-$336 million loss in the prior quarter, and set an all-time cash burn high of $16 million per day.
Breitbart News reported in early October that CEO Elon Musk had announced that Tesla Inc. had its “all-time best quarter” with record deliveries of 26,150 vehicles, including 14,065 Model S sedans; 11,865 Model X SUVs; and 220 Model 3 economy cars. That was considered a disappointment for Model 3 deliveries, and its stock sold off by 1 percent.
But Musk emphasized that through “physics-first principles,” Tesla would shape a new mode of industrial production to improve efficiency by “factors of 10 or even 100 times.” He said Tesla’s key advantage in building all-electric vehicles was limiting the number of moving engine parts to 20, versus up to 10,000 for internal combustion engines.