Analysts expected Tesla to lose 52 cents per share on $1.62 billion in sales, according to Yahoo Finance.
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Investors who were not happy with the loss of $1.06 per share on an adjusted basis – 77% more than estimates and double that of previous year – were somewhat relieved thanks to the manufacturing progress and affirmation of goals. Wednesday reported a second-quarter loss that widened from a year ago, hurt largely by higher operating costs which offset an increase in revenues.
14,000 new vehicles were sold the second quarter, and 50,000 are expected to be delivered during the remainder of the year.
The quarterly loss underscores the difficulties Tesla is contending with as it tries to ramp up production of its Model 3, which has almost 500,000 preorders, and fuse its productive capabilities with SolarCity, another Musk entity.
CEO Elon Musk describes the situation at Tesla’s Fremont, California, factory as “production hell” for the first six months of the year.
The company said that it finished the second quarter consistently making 2,000 vehicles per week. The Model S unit, which had 9,764 deliveries in the quarter, has a starting price of $76,000.
Expect more information about Tesla Motors’ plans to jump into the commercial vehicle business with electric trucks and buses early next year, but you won’t see the vehicles on the road anytime soon. While there’s always a lot to take in whenever Tesla and Elon Musk get to talking, investors are always looking for the latest information on the company’s total auto shipments.
Tesla said it completed the design phase of the Model 3 in the second quarter and has already installed some production equipment for the auto.
Tesla’s stock was flat in after hours trading following the earnings release. They are now able to make as much as 2,000 vehicles every week. The company’s semi-autonomous “Autopilot” mode was on during the crash.
Tesla reported its first-ever quarterly profit in 2013. The auto maker now expects to come in around 80,000, given an aggressive schedule to produce 50,000 more this year.
The manufacturing progress and affirmation of goals cushioned investors from the disappointment of losing $1.06 per share on an adjusted basis – more than double the year-earlier deficit and 77% more than analysts had estimated.
Also during the quarter, Tesla announced its intention to merge with solar panel company SolarCity Corp., which is chaired by Musk and run by his cousins. Some analysts have questioned the benefits of the deal because both companies are losing money.
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“I don’t think there’s a strong product rationale to combine SpaceX and Tesla whereas there is for Tesla and SolarCity”, Musk said.
