Tesla Model Y won't be here until 2020

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Tesla's record net loss in the first quarter and fast-burn through cash is raising questions about the company's future and whether it will be able to pay all of its bills.

Even before Musk's announcement of its next Gigafactory, expectations were high that the facility Tesla's China facility would be tasked with the manufacture of the company's two mass-market electric cars - the Model Y and the Model 3.

"Even at this stage of the ramp, Model 3 is already on the cusp of becoming the best-selling mid-sized premium sedan in the United States, and our deliveries continue to increase", Musk and Tesla Chief Financial Officer Deepak Ahuja wrote in a letter to investors. The slower rate of output has limited the amount of money coming in from customers taking delivery and tested Tesla's balance sheet.

Prospective patrons have showed patience - there are still more than 450,000 reservation holders waiting, and customer deposits keep rising, approaching nearly $1bn as of March 31. Analysts polled by FactSet expected an adjusted loss of $3.54 per share.

Tesla said that for the period ending March 31, it lost $4.19 a share, on revenue of $3.41 billion.

The shares gained 1.1 percent to $304.50 as of $4:25 p.m.in NY. The company adds that only when it hits the 5,000-unit weekly production target will additional options for the Model 3 like all-wheel-drive and a base model with a standard-sized battery pack be offered.

Instead, he went to a YouTube channel operator and retail investor named Gali Russell, who asked a series of questions about Tesla's plan to phase in fully autonomous driving. His conversation with Musk and the other Tesla executives lasted more than 20 minutes.

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"These questions are so dry, they're killing me", he said.

The moment, captured on the company's results call, occurred after Bernstein analyst Tony Sacconaghi posed a question about capital requirements.

"Excuse me. Next. Boring, bonehead questions are not cool".

The main bottleneck appears to be in the battery module line.

"I'm pretty excited about how we're designing Model Y. It's really taking a lot of lessons learned from Model 3 and saying how do we design something to be easy to manufacture instead of how to manufacture or hard, really", Musk said.

On the call, Musk said Tesla was poised to surpass all rivals in manufacturing. Company gross margins represents its total sales revenue minus its cost of goods sold (COGS), divided by the total sales revenue earned by the company, expressed as a percentage.

Free cash flow, a key metric of financial health, widened to negative $1 billion (roughly Rs. 6,700 crores) in the first quarter from negative $277 million in the fourth quarter, excluding costs of systems for its solar business.

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