That would be a significant investment for any vehicle company, but particularly for Tesla, which consistently loses money each quarter and has offered to acquire SolarCity, another company with Musk as a chairman and large investor – and one that also loses money.
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The company made no reference to a projection made in February that it would be net cash flow positive for the full year 2016.
Tesla’s shares were little changed in after-hours trading on Wednesday.
Ahead of its imminent launch in South Korea, the USA automaker completed the registration of its South Korean unit, Tesla Korea Ltd., with the local government late past year. In the latest earnings call, Tesla performed far lower than the expectations as its losses jumped to $293 million at $1.06 per share.
Tesla delivered 14,402 new vehicles in the quarter, with 9,764 of them being Model S sedans starting at $70,000.
Teslas second-quarter loss grew almost 60 percent to $293 million as it delivered fewer vehicles than planned.
The filing provided reveals that the company had $3.25 billion in principal sources on June 30, 2016.
Adjusted loss per share came in at $1.54, significantly wider than the Zacks Consensus Estimate of a loss of $1.16.
Revenues meanwhile climbed by around a third to $1.3 billion, as Tesla ramped up production but missed its target of 17,000 vehicles by around 2,600 units.
Aside from the Model Y, the company will also be working on heavy duty trucks and high passenger-density urban transport which is speculated to be a minibus.
The company went through the final steps and agreements to acquire SolarCity, a solar panel producer and installer.
A senior research analyst Ben Kallo, at Robert W. Baird, said that he thinks this is actually what he called the de-risking the quarter, they got the quarter out of the way so now they got a couple months where Elon Musk can start telling us more about the Model 3. But some analysts are wary of the combination of two companies burning through huge amounts of cash. It’s a massive battery factory in Nevada, it’ll cover needs of drivers in the batteries for their Teslas.
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Beyond the profit-and-loss numbers, however, analysts and investors alike were looking to Tesla’s updates on vehicle deliveries, production targets and capital expenditure plans.
