Bigger production leads to bigger revenue and bigger earnings? As the Tesla figures for the first quarter of 2017 show, this straightforward calculation doesn’t always hold.
Record vehicle deliveries propelled the company’s automotive revenue to an all-time high of over $2 billion. While still being the biggest revenue generator overall, Tesla’s automotive business is no longer the only relevant source of revenue for the company. The Californian’s expanding energy generation and storage activities played its part in bringing overall revenue to a company record of $2.7 billion.
Despite the great increase in revenue, Tesla is still far from profitable. In the first three months of 2017, Tesla lost nearly $400 million, also a company record. In early trading on Thursday, the stock price of the company that became the most valuable American car manufacturer last month was down more than 6 percent.