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Tesla sets record vehicle production, $2.7 billion revenue, Model 3 on track for July production

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Tesla released its first quarter 2017 earnings after the closing bell on Wednesday, surprising Wall Street with record production, delivery and revenue numbers. The electric car maker reported revenue of $2.7 billion in GAAP revenue, with $2.28 billion from automotive revenue. The GAAP net loss was $2.04, with non-GAAP loss of $1.33 a share, much larger than expected. This quarter compares well with Q4’16, when TSLA surprised Wall Street after posting a fourth quarter earnings loss of 69 cents a share, and revenue of $2.28 billion. The complete text of the Tesla First Quarter 2017 Update letter can be seen at the end of this article.

Revenue

In the letter, Tesla announced that “Q1 GAAP and Non-GAAP loss from operations improved from Q4.” As in the previous quarter, the estimates between analysts varied widely. According to a consensus poll with analysts conducted by FactSet, Tesla was expected  to report a GAAP loss $1.15 a share in the quarter compared with a loss of $2.13 a share in the year-ago period, and an adjusted loss for one-time items of 83 cents. Estimize, a crowdsourcing platforms that polls analysts, hedge-fund managers executives and others, expected a loss of just 17 cents a share. E*trade provided its usual estimate range from its poll of analysts: 0.230 | -0.812 | -1.690 (High | Mean | Low), also with an average of about 82 cents.

Model 3

Many analysts have suggested that eyes would be focused intensely on Tesla’s upcoming milestones, particularly its progress on its Model 3 sedan. In the letter, Tesla announced that “Model 3 vehicle development is nearly complete as we approach the start of production. Release Candidate vehicles, built using production-intent tooling and processes, are being tested to assess fit and finish, to support vehicle software development and to ensure a smooth and predictable homologation process. Road testing is also underway to refine driving dynamics and ensure vehicle durability.”  Additionally, “simultaneously, preparations at our production facilities are on track to support the ramp of Model 3 production to 5,000 vehicles per week at some point in 2017, and to 10,000 vehicles per week at some point in 2018.” The company also reported record high orders in Q1 for its Model S and X vehicles. The big run up to the stock in 2017 started when Tesla reported first-quarter deliveries, just over 25,000, on the high end of expectations. Investors will be listening for additional information about the status of the Model 3 manufacturing during the First Quarter 2017 Financial Results Q&A Conference Call scheduled for 2:30 pm PT today. The run up of the stock is also due to the fact that many on Wall Street believe that Tesla has worked out some of its manufacturing kinks and is on track to start delivering to employees the first few Model 3 sedans in July, as promised.

Cash

In the letter, Tesla announced that “Q4 to Q1 cash increased by over $4 billion. Cash at the end of Q4 2016 was $3.4 billion. Tesla raised more capital in the quarter with its March $1.5B Offering of Common Stock and Convertible Senior Notes.

TSLA Stock

Tesla shares have been going though the roof, up 80% to a record close of $322.83 on Monday, since the December low when they closed at $181.47. The past three weeks has experienced a string of record highs and the stock has traded above $300 for the better part of April, with an intra-day high of $327.66 on Monday. From a technical perspective, the sky is the limit, and while the shares have been overbought since the beginning of the year when they were trading at $214, there does not seem to be any bad news that can stop the stock from going up.  This week TSLA market cap, again, topped GM as the most valuable car maker in the US with a value of over $52B vs. GM’s $50B.

While TSLA stock has soared, traders short selling TSLA have lost $3.7B in 2017, far more than has been lost shorting any other U.S. stock. This is more than the combined losses of short sellers in Apple (AAPL), Amazon (AMZN) and Netflix (NFLX), according to financial analytics firm S3 Financial Partners. Short bets against TSLA have grown to $10.1B from $8.7B at the start of April, when the more recent TSLA run started. “Momentum” traders are riding TSLA stock up and making incredible returns, especially on options, while “fundamental” traders hold onto their shorts and actually continue to build on them, hoping that the shoe will eventually drop.

As reported by Reuters in “Einhorn, nursing losses on Tesla, says investors ‘hypnotized’ by Musk”, hedge fund manager David Einhorn said on Wednesday that “Einhorn’s Greenlight Capital hedge fund bet against Tesla shares during the first three months of year, racking up losses on its short position. Greenlight did not disclose its current position on Tesla.” Unfortunately for David and other short sellers, barring a delay on delivery of Model 3, the momentum traders may still have the upper hand, at least for the rest of 2017. Today’s session ended up closing 2.55% lower at $310.76.  Looking at the extended trading action after the close, the initial reaction to the numbers for Q1 2017 is nil: stock moved to $312. Expect an uneventful opening on Thursday.

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Tesla First Quarter 2017 Update http://www.teslarati.com/wp-content/uploads/2017/05/TSLA_Update_Letter_2017_1Q.pdf

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Investor's Corner

Tesla’s flying Roadster just revealed something bigger than the car

Analysts say the Roadster demo puts a Tesla and SpaceX merger back on the table.

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Tesla’s new Roadster, upside down and trailing cold gas thruster smoke, flips over a lineup of Tesla vehicles at the Roadster unveiling near Waco, Texas on October 15, 2026. (Image: Tesla)
Tesla’s new Roadster, upside down and trailing cold gas thruster smoke, flips over a lineup of Tesla vehicles at the Roadster unveiling near Waco, Texas on October 15, 2026. (Image: Tesla)

The Roadster unveiling near Waco ended Thursday night, and by Friday morning much of the investor reaction had less to do with the car than with who owns the rocket technology inside it.

Wedbush analyst Dan Ives said the event “puts the Tesla/SpaceX relationship on the table in a tangible way,” pointing to the propulsion, pressure vessel and control hardware sitting on a Tesla product. Gene Munster of Deepwater Asset Management called the demo “a ridiculous display of engineering” with “no commercial value” beyond embarrassing traditional automakers, though he said it showed Musk wants the two companies together.

The more specific forecast came a day earlier from Barclays. Analyst Dan Levy told clients a deal could be announced before Tesla’s annual meeting, which must happen by December 6, and that an announcement in late October or early November could make shareholder approval harder. Barclays expects SpaceX to be the buyer in an all stock deal, with Tesla holders receiving SpaceX shares at a premium, based on market values of roughly $2.1 trillion for SpaceX and $1.5 trillion for Tesla. If nothing lands around the meeting, the bank still sees an announcement within 6 to 12 months.

The Roadster demo just added more weight to merger speculations. Tesla’s demo used cold gas thrusters and pressure tanks of the kind SpaceX uses on Falcon 9, and Musk described the car as a collaboration between Tesla and SpaceX engineers, as we mentioned in our breakdown of the three Roadster configurations.


Musk has not publicly addressed a deal since the event, as far as we have seen. His most direct answer remains the one he gave at the All In Summit, when he said that with so much collaboration, “who can imagine what action one might take” without ruling anything out. Ives has held to a 2027 timeline since his March note, and Musk pushed back on the China piece of the speculation when ARK floated a year end announcement in August.

The next test is Tesla’s third quarter earnings call on October 21. However, we recall in July that Musk told analysts, “we can’t talk about combining companies and that kind of thing on an earnings call,” so a clear answer wouldn’t be expected.

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Elon Musk breaks his silence on the Starlink impact to Ukraine drones

Musk says the US military and president set Starshield limits, not SpaceX, amid Ukraine complaints.

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Elon Musk says the speed limit cutting out Ukraine’s military Starlink terminals is not SpaceX’s decision. In a post on X Wednesday, Musk wrote that “Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS.” He added that Starlink is a commercial service limited to civilian or defensive activities and “cannot be used for offensive military action, as doing so would be inappropriate for a commercial company.”

He was replying to Mykhailo Fedorov, Ukraine’s former defense minister, who had thanked Musk for restoring connectivity at speeds up to 160 km/h and said removing the Starshield limit entirely is “now critical for Ukraine’s defense.”

The complaint started Tuesday night, when Ukrainian officials said military terminals began losing service above roughly 100 mph. Presidential adviser Serhiy Beskrestnov said the defense forces got no warning and several missions were disrupted, as Teslarati reported earlier Wednesday. The 7th Rapid Reaction Corps told Reuters connections dropped for 10 to 20 seconds at speeds well below the limit, which made drones harder to control. Poland’s foreign minister, Radoslaw Sikorski, asked Musk on X whether he is “playing politics with your products again.”

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That is why the Starlink and Starshield distinction matters. SpaceX introduced Starshield in 2022 as the government version of Starlink, with an initial focus on Earth observation, communications and hosted payloads. It won a Space Force contract in 2023 with a $70 million ceiling. In December 2024, the Pentagon moved Ukraine’s terminals onto Starshield, covering about 3,000 units across two contracts. Ukraine’s military connections therefore run through a service that Musk now says sits under Washington’s control.

SpaceX pitches subscription model for Trump’s Golden Dome

While Musk’s post describes who holds authority, it does not infer that anyone ordered the limit, and neither SpaceX nor the US government has confirmed who set it. Ukrainian officials have pointed to the timing, which follows President Trump’s push for an energy ceasefire and Musk’s Saturday post that “Zelensky has gone too far.” The BBC noted Trump denied threatening to restrict intelligence sharing with Kyiv, and no evidence has been presented that Washington requested the cap.

The episode also revives a promise from 2025. After Poland accused him of threatening Ukraine’s access, Musk said Starlink “will never turn off its terminals” and would not be used as a bargaining chip. Poland has since supplied more than 29,000 terminals to Ukraine. Teslarati also covered Kyiv’s search for Starlink alternatives in 2025, and the latest dispute gives that search new urgency.

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Tesla opens the Q&A for its biggest earnings call yet

Tesla opens its Q3 earnings Q&A, and Cybercab, Robotaxi, Optimus and regulators loom over October 21.

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Tesla has opened its shareholder question portal for the Q3 2026 earnings call, with the Say Q&A page already listing questions. Investors have until 4:00 p.m. EDT on October 20 to submit and vote on what management should answer.

The call is set for Wednesday, October 21. Tesla will post results after the market closes, with a live webcast at 4:30 p.m. CT, or 5:30 p.m. ET, through its investor relations site.

Say ranks questions by the number of shares behind the votes, which gives institutional holders extra weight over the retail crowd.

Ahead of Q2, retail investors asked why Robotaxi growth had stalled, when Cybercab would start customer rides, and where the Optimus Gen 3 ramp stood, while an institutional holder asked how Tesla and SpaceX would split Terafab duties. Cybercab has since answered one of those. Tesla said last week it has 300 plus Cybercabs serving Austin, up eightfold in 30 days, with Dallas named as the next city. The questions now are likely to move from when to how fast.

There is also a regulatory question hanging over the call. NHTSA has demanded sworn answers on how the pedal free Cybercab was certified against federal safety standards, with responses due October 30, nine days after the call. Whether an analyst raises it live is unknown, but it is the kind of exposure that tends to find its way into a Q&A.

The numbers will not be the main draw. Tesla already reported 486,532 deliveries and 13.7 GWh of storage for the quarter. Consensus sits around 43 to 45 cents per share on roughly $27.8 billion in revenue, according to Zacks, after a Q2 report that missed on EPS. Goldman Sachs, which holds a Neutral rating and a $360 target, argues the outlook for Robotaxi, FSD and Optimus will matter more to the stock than the quarter itself.

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The call also lands six days after the rescheduled Roadster event, which Tesla will stream on X on Thursday, October 15, at 7:55 p.m. CT. If the Roadster shows up with a production date or a SpaceX thruster package, expect it to climb the voting list before the deadline.

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