Tesla Burns Through Less Cash Than Expected as Model 3 Arrives

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On July 28, Tesla handed over the first 30 Model 3 cars to early buyers.

One can argue that the differences are minimal, at best.

In today's call, Musk had seemingly been talked down by his team of engineers and other interested parties because, well, you just can't sustain reinventing the wheel every two years. Kelty led negotiations with Panasonic on that plant, according to his LinkedIn profile. Incidentally, the Model Y may sport the same falcon wing doors originally introduced by Tesla's Model X. And in case you missed it the first time around, below is the Model Y teaser photo Tesla released this past June. Kelty couldn't immediately be reached for comment.

The results came within a week of Tesla's long-awaited Model 3 launch, where Musk revealed that first off the production line would be a $44,000 version of the vehicle with a 310-mile (500 km) range.

Tesla's second quarter revenue skyrocketed 200% year-over-year to $2.79 billion, which also beat the Zacks Consensus Estimate of $2.55 billion.

The company said last month the packs were being made using new technology and production lines.

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Tesla said it expects positive non-GAAP Model 3 gross margins in the fourth quarter, eventually growing to 25 per cent in 2018. This will enable the company to bring the crossover to market sooner since the crossover will share many of its components with the Model 3. CEO Elon Musk said the company has 500,000 reservations for a Model 3 and it wants to ramp of production as quickly as possible.

The outstanding leader in the auto development and another auto related technological advances, Tesla, managed to report a great quarter performance that greatly buoyed the company's shares in the later trading hours.

Over the past year, about 63,000 customers have canceled their Model 3 orders.

During the quarter, the firm produced 25,700 cars, which it said was a 40 per cent increase on production from past year. The first Model 3s to be built will all be rear-wheel drive, but a four-wheel drive version is also on the way, and there are already strong rumours that even faster versions will be available in the coming years.

In May, Musk announced that Tesla had opened orders and was taking $1,000 deposits for the much-hyped product.

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