One of the main questions surrounding Tesla is its ability to ramp up production to satisfy the almost 400,000 existing Model 3 orders, and the hundreds of thousands of orders that are supposed to follow. Past isn’t necessarily indicative of the future, but on Tesla’s earnings call just now things didn’t sound all roses.
The company ended up losing $293 million last quarter on a GAAP (Generally Accepted Accounting Principles) basis, and $150 million on a non-GAAP basis, which takes into account things like leases that GAAP generally doesn’t adjust for. And while the company took in $150 million in cash flow from operations on a GAAP basis – partially based on Model 3 order deposits – it spent $295 million on customer service, increasing production capacity, and the Gigafactory. Tesla says it’s on track to deliver 50,000 Model S and Model X cars in the second half of the year.