Zachary Kirkhorn stated that Tesla would kick start the building of semi-trucks in 2020. He
claimed that it is then that the battery and electric drive units will be produced. Tesla began
receiving orders as early as 2017, pricing the trucks differently based on the mileage. A 300-mile
range tractor priced at $150,000 and a 500-mile range tractor priced at $180,000. Previously, the
production had been scheduled for the current year.

The CEO, Elon Musk, said that they are yet to decide on whether to make the model Y small
SUV in Nevada or Fremont in California. By the end of 2020, deliveries will be ready. Elon
Musk had already prepared Wall Street of a fourth coming loss, which the analysts were shocked
at how large it was, claiming that it was one of the company’s worst quarter in the past two
years. The loss amounted to $702.1 million. The loss incurred was far much more than what the
analysts had predicted.

On the positive side, Musk was in full praise of how the rates of demand and profit margin were
expected to rise with the new products and the updated pricing. He claimed that market demand
for Model S, X and 3 were moving back to the average level having delivered only 63000
vehicles from January to March. He was adamant that the demand as at that time was in a good
position. Tesla is expected to make losses in the second quarter, followed by a series of
profitable quarters.

The company confirmed that they would not be able to make all deliveries by 31 st March since
they expect some challenges which are inevitable yet not clear to them. By December Tesla’s
cash balance dropped by $1.5 billion to $2.2 billion. The fall was blamed on the bond payment of
$920 million though Musk talked of it being time to raise in the capital. The company is still expecting to produce the expected 360.000 to 400,000 with an extension to 500,000 if all goes well with a Chinese factory.

Michael Ramsey claimed that Tesla is about to get to the amounts that will help them clear up all
bills. He added that if Tesla is to go on with the kind of expenditure, it will run out of cash in less
than half a year. Ramsey reiterated that if the production expected is a success, the deliveries and
sales will sustain Tesla.