A Tesla dealership is seen in West Drayton, just outside London, Britain, February 7, 2018. Once at that production rate, Tesla could begin to generate sustained positive operating income “at some point in 2018,” Musk said.“I‘m cautiously optimistic that we will actually be GAAP profitable with no asterisk,” he added. Using that accounting method, Tesla lost nearly $2 billion last year.Tesla posted its biggest-ever quarterly loss, but the loss was not as wide as analysts were expecting, and revenue just topped targets.CASH BURNMusk reiterated a bold goal to produce 1 million vehicles annually by 2020, with plans to make capital investments related to the upcoming Model Y SUV toward the end of this year. Nearly two years ago, Musk proclaimed that Tesla would produce 500,000 vehicles in 2018, which Model 3 troubles has made near impossible.Analyst Jamie Albertine at Consumer Edge Research said there was a trade-off between accelerating growth and vehicle quality, and it was better not to rush Model 3 production and risk a recall. Global automakers from Ford Motor Co (F.N) to Volkswagen AG (VOWG_p.DE) are cumulatively investing $90 billion in electrification over the next five years, with luxury models from Audi and Tata Motors Ltd’s Jaguar (TAMO.NS) due to hit showrooms this summer.Amid that sales pressure, Musk announced that Jon McNeill, president of global sales and service, and seen by some as a possible successor to Musk, was leaving the company.

Source: Egypt Today February 08, 2018 10:18 UTC