The company reported a second-quarter adjusted loss of $1.06 per share on $1.56 billion in sales.
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Weeks after Tesla reported its first known fatality of a driver using autopilot, Musk said the company’s “top two priorities” are the Model 3, “followed by full autonomy”.
Tesla shares fluctuated after the earnings crossed, sliding by as much as 2%.
Despite the dour earnings report, Wall Street barely blinked; Tesla shares slipped just a third of a percent in after-hours trading.
Musk said: “In the development of a vehicle, there’s a long phase in the beginning of the development that involves a lot of time, but not a lot of costs”. Certain features, particularly the utility vehicle’s gull-wing doors and second-row seats, have thrown a wrench into the process. In the first half of the year total production was about 30,000 vehicles.
CEO Elon Musk said the company emerged from “production hell” in June, and expects a steady flow of vehicles for the rest of the year. “Man, it was hell”. Now the production line is humming, and our suppliers mostly have their [expletive] together.
Even so, questions remain about Tesla’s ability to raise more cash for the far-reaching goals under Musk’s “Master Plan Part Deux”, which calls for an expansion into more vehicle segments and a push into solar power markets. He also said he will replace suppliers who can not be ready in time.
We are adding stores in new population-dense markets like Taipei, Seoul, and Mexico City, while also adding stores in our most mature markets like California. “We recognize revenue on directly leased deliveries as cash is received over the lease term of typically three years, on both a GAAP and non-GAAP basis”.
With the help of improvements in vehicle production efficiency, the company revealed that it anticipates manufacturing 2,200 vehicles in a week by the end of 3Q and almost 2,400 by the end of this fiscal year.
Tesla unveiled its massive battery factory, the Gigafactory, in Nevada last week, saying it would begin to ramp up production later this year.
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Electric vehicle developer Tesla (NASDAQ:TSLA) expects to “blow people’s minds” with its self-driving auto technology, although its results failed to achieve quite the same effect. The Model 3 chassis will be used with the Model Y, the small crossover vehicle. It delivered 14,402 new Model S and Model X vehicles in the quarter, falling well below its earlier estimate of 17,000. Though this trend does not seem surprising due to high cost of Model X and Model S, the automaker will have to sign new agreements with lenders to fund the program. After that will come the Minibus and the Semi.
