Tesla has reported a record loss of $709.6 million for the quarter ending May 3, marking the biggest loss in the company’s history. Despite this, the adjusted losses of $3.35 per share were not as bad as analysts had predicted, who had forecasted losses of $3.58 per share. However, Tesla’s share price still fell by over 5% following Elon Musk’s peculiar conference call with analysts after the announcement.
Musk’s Controversial Comments
During the call, Musk dismissed questions about the company’s profitability as “boring” and “dry.” He went on to say, “Really, the problem is like people get too focused on like what’s happening in the space of a few weeks or a few months, investing should not be focused on short-term things. You should be focused on long-term things.” While this makes for interesting reading, it raises questions as to whether Musk is deliberately seeking attention to detract from the company’s performance or if he is genuinely concerned about Tesla’s inability to meet its production and revenue targets. With the production of current models still falling short of the company’s goal of 5,000 per week and the much-anticipated Model Y not set to begin production for another two years, there are concerns looming over the California-based tech giant.
As for trading implications, it is important to keep a close eye on Tesla’s performance in the long-term rather than short-term fluctuations.