Tesla shares drop after Elon Musk says he does not expect to turn a profit this quarter

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Tesla boss Elon Musk (L) walks with Shanghai Mayor Ying Yong during the ground-breaking ceremony for a Tesla factory in Shanghai on January 7, 2019. - Musk presided over the ground-breaking for a Shanghai factory that will allow the electric-car manufacturer to dodge the China-US tariff crossfire and sell directly to the world's biggest market for'green' vehicles. (Photo by STR / AFP) / China OUT (Photo credit should read STR/AFP/Getty Images)

Tesla boss Elon Musk (L) walks with Shanghai Mayor Ying Yong during the ground-breaking ceremony for a Tesla factory in Shanghai on January 7, 2019. – Musk presided over the ground-breaking for a Shanghai factory that will allow the electric-car manufacturer to dodge the China-US tariff crossfire and sell directly to the world’s biggest market for ‘green’ vehicles. (Photo by STR / AFP) / China OUT (Photo credit should read STR/AFP/Getty Images)

Tesla CEO Elon Musk does not expect the electric car maker to turn a profit in the first quarter, he said on Thursday.

He based his expectations on one-time charges and other financial commitments, and added that he does expect the company to be profitable in the second quarter.

“Given that there is a lot happening in Q1, and we are taking a lot of one time charges, there are a lot of challenges getting cars to China and Europe, we do not expect to be profitable. We do think that profitability in Q2 is likely,” Musk said.

Shares fell more than 3 percent Thursday night.

The revelation came on a media call where Tesla announced it will sell is long-promised $35,000 version of the Model 3 mid-size sedan. The company also said it would be taking all sales online, and acknowledged that some jobs in its retail group would be eliminated as a result.

WATCH: Tesla launches $35K Model 3 with shorter range, new interior

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