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Tesla Posts $722 Million Quarterly Loss, Higher than Expected

The company promises to be profitable again in the third quarter.

Tesla lost $722 million in the first quarter of 2019, higher than expected. The electric-vehicle automaker’s cash equivalency on hand at the end of the quarter was $2.2 billion, which is $1.5 billion lower than the end of 2018. Special onetime items included $920 million in convertible bonds due.

The loss of $702.135 million attributable to shareholders compares with a loss of $709.551 million in Q1 ’18, and to Tesla’s rare fourth-quarter 2018 profit of $139.483 million.

Tesla says it produced 63,000 Model 3s in the first quarter, with production of the compact EV sedan for overseas markets having begun, though it delivered only 12,100 vehicles last quarter, with half that number delivered in the last 10 days of the period.

The company recently announced plans to offer full autonomous driving in certain locales by the end of 2019, as well as begin operation of an autonomous ride-sharing program using customers’ Model 3s by the end of 2020. Updates to the Models S and X to increase driving range were announced the day before the earnings report.