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Today the CEO apologized not once, but twice to the same analysts on the call.

Tesla also recently announced plans to build a new factory in China, an investment Mr Musk said would be about $2bn and produce about 250,000 vehicles annually. Tesla shares fell after the incident, and Musk later apologized. But Musk said numerous trade-ins it received were mass-market vehicles, including the Toyota (7203.T) Prius and Honda (7267.T) Accords and Civics.

"There are reasons for it in that I'd gotten no sleep, and been working sort of 110-hour, 120-hour weeks", Musk continued.

The analysts accepted his apologies.

Musk brought key people from the Autopilot self-driving team on the earnings call.

But the move may have been more than ceremonial.

Musk tweeted in April that the company's profitability would mean it would have "no need to raise money", but the company now has billions of dollars in debt, including more than $1 billion that will need to be paid or refinanced within the next year.

Investors responded very positively: Tesla shares surged as much as 12 per cent in after-hours trading.


Tesla has burned through $739.5 million in cash as it attempts to ramp up output of its Tesla Model 3 sedan after months of production line woes.

Contrition pays off - just ask Elon Musk. It seemed the quarter was destined to only contain bad news until. Oh, and the volume control on the Tesla Model S goes all the way to 11. Margins went from nearly flat to 15 percent, still a ways off the 25 percent mark that CEO Elon Musk has called for.

"We want to make super fun games that integrate the center touch screen, phone & vehicle irl", he wrote.

The company also said that Model 3 gross profit margins turned slightly positive during the quarter as it worked out expensive kinks in its manufacturing system. The rest was made up of 22,319 Model X and Model S.

Looking ahead, Tesla writes that Model 3 production should reach 10,000 units per week sometime next year. This is despite a drop in revenue from its energy storage and generation business. As of April, some 23% of reservation deposits for the Model 3 were refunded, according to Second Measure.

Musk then put his signature optimism on display, saying it was Tesla's goal "to be profitable and cash-flow positive in every quarter going forward".

And it seems like Tesla will be able to do it. That's substantially less than the 2017 level of $3.4 billion. Though promised as a $35,000 mass-market vehicle, the only models available now sell for about $50,000 or more.


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