“To be clear, the priority vehicle development after the Model 3 would be the Model Y, the compact SUV, because that’s also a auto that we expect to see demand in the 500k to 1 million units per year level”, CEO Elon Musk said.
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For the three months that ended June, the California-based company reported a net loss of $293.2 million, or $2.09 per share, which widen from $184.2 million, or $1.45 per share, a year earlier.
Tesla Motors Inc (NASDAQ:TSLA) said that with these improvements, company is still on track for generating more revenue by delivering about 50,000 vehicles in the latter half of this year, and this reaffirms its previous guidance.
It is the second consecutive quarter that Tesla has missed production targets, raising doubts about whether it will reach its full year goal.
The company advised going into the year it would produce between 80,000 and 90,000 Model S and Model X vehicles this year. Musk said the company would be profitable, if it wasn’t for the financial efforts to get the Model 3 and Gigafactory off the ground. “Now our production line is humming – and now suppliers mostly have their sh*t together”.
In its shareholder letter, the company claimed that it finished the second quarter making 2,000 vehicles per week, totalling 18,345 vehicles produced during the quarter.
Revenue rose 33% to $1.27 billion. Tesla recently said production of the smaller, cheaper lithium-ion battery cells will start by the end of this year.
Analysts on average had expected a loss of 52 cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear whether the numbers were comparable.
Despite Musk’s assurance that the company was now hitting on all cylinders, investors weren’t exactly bowled over. “Some Model 3 production equipment is already on line, including initial capacity in our stamping and paint centers”.
Despite all this, Musk has his sights set firmly on the future, and that includes Tesla getting into two new vehicle markets.
“Unfortunately or fortunately, Tesla can’t sneeze without there being a national headline”, Musk said on the call. Tesla has offered $2.6 billion for the company, and envisions a one-stop approach where customers could order solar panels through Tesla stores, hook them to Tesla’s energy storage system and use them to power Tesla cars.
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Tesla’s stock was flat in after hours trading following the earnings release.
