After Tesla reported disappointing production and delivery numbers for the first quarter, people expected the financial data to show a similar disaster. Although the first quarter marked a significant decrease in total revenue, Tesla held up better than most analysts estimated. This made Tesla shares jump more than 10% in the hours following the earnings call.
Tesla didn't have a very good first quarter, as revealed last month by the lower-than-expected delivery numbers. Tesla explained that the decrease was caused by a difficult Model 3 production ramp-up at Fremont, disruptions caused by the Red Sea conflict, and a terrorist attack at Giga Berlin. However, this didn't explain why Tesla ended the quarter with a large gap between production and deliveries, with more than 46,000 EVs added to its inventory.
The financial data reported on Tuesday confirmed that Tesla took a hit in the first quarter. The EV maker was forced to dig deep into its coffers to finance its massive investments in AI infrastructure, production capacity, Supercharger and service networks, and new product infrastructure. With $2.8 billion in capital expenditures, Tesla ended the quarter with $2.5 billion less in its cash reserves.
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