Mubasher: Tesla posted a net loss in the first quarter of 2019, pressured by tepid demand for electric vehicles (EVs) after the car giant lost a tax credit for buyers.

On an unadjusted basis, Tesla lost $702.13 million, or $4.10 per share, in the period between January and March, compared with a loss of $709.55 million, or $4.19 a share in the same period last year.

The company recorded a net profit of $139.48 million in the period between October and December 2018.

Tesla recently warned that “lower than expected delivery volumes and several pricing adjustments” would weigh on the income during the first quarter.

Tesla generated $4.54 billion in total revenues in Q1-19, versus $3.40 billion in Q1-18, and $7.22 billion in Q4-18.

Automotive sales climbed 36% to $3.72 billion in the three-month period ended last March, compared with $2.74 billion in the same period last year, but lower than $6.32 billion in the three-month period ended December 2018.

Sales declined quarter-on-quarter after a $7,500 federal tax credit paid to electric vehicle buyers was cut in mid-January.

This boosted demand during the fourth quarter as drivers rushed to get cars, ending in a weaker demand in the first quarter.

Tesla unveiled its plan to launch an insurance product of its own as early as next May.

The company also confirmed its previous full-year sales outlook, predicting deliveries to range between 360,000 and 400,000 units. This is roughly 45% to 65% higher, compared with 2018.

“We continue to target a 25% non-GAAP gross margin on Model S, Model X and Model 3, depending on variant mix and option take rates as our product offerings change,” Tesla said.