I still remember that at the beginning of the year, when Tesla achieved sustained profitability in the last two quarters of 2018, the market kept saying "Tesla is about to achieve sustained profitability." However, as Model 3 started mass production and delivery, its profitability began to suffer. How is Tesla doing lately? What caused its two consecutive quarters of losses? Let us introduce to you one by one what kind of plans Tesla has in the face of problems.
After Tesla’s financial report at the beginning of 2019 showed that it continued to make profits in the third and fourth quarters of 2018, Musk quickly opened the groundbreaking ceremony of the factory in Shanghai, China, and started the overseas delivery of Model 3. In what seems to be a promising trend, Tesla has launched the Model Y and has significantly reduced the price of the Model series in China. The purpose of this behavior is to expand sales. From the side, it can be seen that Tesla's sales still have a lot of room for improvement in the first quarter.
Despite many efforts, Tesla’s first-quarter profit performance did not meet expectations. Tesla's stock price fell following the release of its first-quarter financial loss. Despite poor first-quarter earnings, Tesla is still making steady progress. Information such as the plan to build a self-built battery factory, the launch of fully autonomous driving products by the end of 2020, the construction of third-generation super charging piles, and even the opening of pre-orders for the domestic Model 3 have been continuously released. At the same time, its old Model S has frequently spontaneously ignited in mainland China, but so far no clear solution has been given. The price of the domestic Model 3 is insincere, and car owners are worried about the quality of Tesla products. The society is relatively dissatisfied with Tesla's performance in service and quality control.
In addition, during Tesla’s second quarter conference call, the company’s co-founder and chief technology officer JB Straubel will leave the company and become a senior advisor to Tesla. As the soul of Tesla's product technology, JB's departure caused the company's stock price to suffer another setback. Since 2018, more than 100 Tesla executives have resigned, which has also added to the market's negative sentiment about Tesla's future expectations.