DETROIT Electric auto maker Tesla Motors Inc. ended its turbulent second quarter with a larger-than-expected loss, but said it remains on track to increase production in the second half of this year and introduce a new vehicle in 2017.
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Overall revenue did rise 33 percent to $1.27 billion from previous year but operating costs also rose 34 percent to $512.8 million.
However, offsetting the increased revenue performance is the higher operating expenses of Tesla Motors, which was reported at $512.8 million compared with $383.6 million in last year’s second quarter.
And though investors shrugged off the production numbers this quarter, they’re wary looking forward when subsequent auto models are set to be produced by the hundreds of thousands.
The company said that it finished the second quarter consistently making 2,000 vehicles per week.
In terms of vehicle deliveries, Tesla said 14,402 vehicles were delivered in the second quarter of 2016.
One challenge it did not meet – analyst expectations. It was the 13th consecutive quarterly loss.
Tesla CEO, Elon Musk took to twitter and announced that the next model from their stable will be the Model Y, a compact SUV based on the Model 3 sedan.
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. Tesla’s operations generated cash for the first time in several quarters, mostly owing to the effect of $1,000, refundable Model 3 reservations. Its stock closed down 0.6 percent to $225.79 a share. Analysts had expected a loss of 52 cents per share, according to a Thomson Reuters poll.
Between the Model S and Model X, Tesla expects to produce 50,000 cars over the second half of the year.
He added: “We’ve got some next-generation technology and we’re going to split up that production line”.
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The automaker said that it has completed the design for the Model 3 and that the gigafactory remains on target to support volume production of the Model 3 in late 2017. Musk made the comments during Tesla’s Q2 earnings call on Wednesday. If Tesla can hit that number, total deliveries will come in just slightly below its previously-forecasted 80,000 deliveries on the year. And last week, it celebrated the official opening of its Gigafactory near Reno, Nevada, where battery-cell production is slated to begin in the fourth quarter.
