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Tesla posts $700m Q1 loss

Tesla lost $700 million in the first quarter but predicted it would return to profit in the third quarter as it cuts costs and improves delivery after facing issues ramping up shipments outside the US.

Shares of Tesla were about flat after the results, which came more than an hour after they were expected and after a sales contraction in the quarter raised investor concerns.

The company, which many analysts predict will need to raise funds for its expansion, said it ended its first quarter with $2.2 billion in cash after paying off a $920-million convertible bond obligation in March. “There is some merit to raising capital,” said CEO Elon Musk. “It’s probably about the right time.” He also said he would prefer Tesla to be private but “that ship has sailed”.

News credit : Indiatimes