Tesla recently reported their first
quarter earnings, and they are not very impressive. Tesla has burned through
more cash than expected by analysts, and has struggles to increase its
production of the Tesla SUV. The loss was reported to shareholders as a
whopping $710 million dollars, its fifth consecutive quarter with a loss. Elon
Musk, the company’s CEO is encouraging shareholders to not worry about the loss,
as Tesla is on track to finally reach its full production quota of the model 3
within weeks. Therefore, once these cars are finally delivered to their
prospective owners, the margin of Tesla will dramatically increase and it may finally
be able to report a profit in the second quarter of this year.
In relation to Marketing, Elon Musk
has done a fantastic job presenting and captivating the minds of those
interested about Tesla. Even though Tesla has posted losses for the last five
quarters, people still have confidence in the company, and are in fact buying
more and more shares of Tesla at an increasing price. This is due to the
fantastic marketing of Tesla, as somehow Musk has created an aura of confidence
in the brand, with little regard to the financial condition of the company.
Normally, companies who report losses and are not profitable have a negative
market presence, and many have continually falling stock prices. However, this
is not the case for Tesla and I attribute that to its excellent marketing
strategies.
https://www.wsj.com/articles/tesla-continues-to-burn-through-cash-1525293204
Andrew Dibello
I am very surprised that Tesla is losing a lot of money. However, I believe they will be very successful in the future, considering the product they are producing. It is good to see that they are investing a numerous amount of time and money and continuing to be confident in their product.
ReplyDeleteAlso very surprised Tesla is losing money. Ive seen stops on the road with outlet charging stations just for tesla drivers. I assume they will start doing well again soon.
ReplyDeleteI'm honestly not surprised tesla is losing money. These cars, though very cool, are hardly seen on the streets. I feel like they've put so much into the car that their effort is surpassing their wanting results.
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