Tesla has reported a dramatic drop in profits for the first quarter of 2019, adding that it doesn’t expect to return to profit until the third quarter.
For the first three months of the year the electric car retailer reported a loss of $702 million (£545 million), well below analyst expectations following two consecutive quarters of profits at the end of 2018.
This represents losses per share on an adjusted basis of $2.90, compared to the 69 cents which were expected.
It reportedly finished the quarter with $2.2 billion (£1.71 billion) cash on hand, down $1.5 billion (£1.16) from the previous quarter.
The stark drop in funds has been attributed to a one off $920 million (£714 million) bond that came due in March, though it added it should increase its cash balance every quarter moving forward.
Tesla also reported revenues of $4.5 billion (£3.49 billion) in the first quarter, up from $2.6 billion (£2.02 billion) in the first quarter of 2018, but down significantly from $7.2 billion (£5.59 billion) in the previous quarter.
This was also below the $5.19 billion (£4.03 billion) expected.
As reported earlier this month, Tesla sold 63,000 cars during the quarter, down from 90,000 in the final quarter of 2018.
This concludes what has been a difficult and complicated quarter for Tesla, having released its flagship standard Model 3 and announcing a dramatic shift away from physical retail to online.
New CFO Zach Kirkhorn called it “one of the most complicated quarters that I can think of in the history of the company.”