Can Tesla Start Turning a Profit?

We calculate adjusted free cash flow of negative $706.5 million compared with negative $942 million in the first quarter and negative $1 billion in the second quarter of 2017. This burn could have been worse because Tesla likely incurred large production costs at the end of the quarter to meet the Model 3 production target of 5,000/week yet most of these vehicles were likely not booked in revenue until the third quarter after delivery to the customer. The company finished the quarter with $2.2 billion of cash and management lowered its 2018 capital expenditure projection to slightly below $2.5 billion from slightly below $3 billion. Total vehicle deliveries in the second quarter rose 85% year over year and by 36% sequentially to 40,768.

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