DETROIT >> Tesla’s record net loss in the first quarter and fast-burn through millions of dollars is raising questions about the company’s ability to pay all its bills.
CEO Elon Musk conceded that criticism is valid but said during a sometimes-testy conference call with analysts Wednesday that it’s “quite likely” Tesla will make money and have positive cash flow in the third quarter.
“It’s high time we became profitable,” said Musk, who also promised restructuring this month to achieve profit goals. “The truth is you’re not a real company until you are, frankly. That’s our focus right now.”
Wednesday’s results showed Tesla tearing through $745.3 million in cash in the first quarter, due largely to the slow production ramp-up of the Model 3 mass-market electric sedan. The cash burn could put pressure on the company to borrow more or sell additional shares to raise more cash.
Tesla posted a record $709.6 million net loss in the first quarter. Revenue grew by 26 percent from a year ago to $3.4 billion.
CVS Health works to close Aetna deal
CVS Health Corp. delivered better-than-expected first quarter earnings as the drugstore chain and pharmacy benefit manager forged ahead with its buyout of the insurer Aetna, a deal the companies say will transform how customers get care.
CVS Health announced late last year that it would spend about $69 billion in cash and stock on Aetna, the nation’s third-largest health insurer.
CVS Health posted a $998 million profit last quarter. Revenue grew 2.6 percent to $45.69 billion.
ON THE MOVE
Armstrong Builders has announced that Gretchen Carnate has been named as project engineer, responsible for overall project coordination, quality control and material procurement. She was previously a project engineer for HK Construction and Su-Mo Builders. Prior to that, Carnate was a CAD technician at DRAFTECHi LLC and a project coordinator with Pacific Architects.
Attorney Mark M. Murakami has been named president of I’m A Bright Kid Foundation, a nonprofit organization dedicated to the late Ronald E. Bright in support of performing arts and education. Murakami, who serves as director at Damon Key Leong Kupchak Hastert has been a member of the foundation’s board of directors since 2016, and was mentored by Bright since 1987.
The Council for Native Hawaiian Advancement has elected its board of directors: Hanalei Aipoalani, chairman; Blossom Feiteira, vice chairwoman; Lahela Williams, treasurer; and Lance C. Lanakila Holden, secretary. Michelle Kauhane will transition from president and chief executive officer to the loan fund committee upon hiring of her successor.
