During its quarterly letter to shareholders, Tesla confirmed that its Model X was coming in September, although those Tesla Model X deliveries will be limited for a short period of time.
Advertisement
“We do think it’s going to be a challenging production ramp on the model X”, says CEO Elon Musk.
For the first two quarters, Tesla spent $426 million and $405 million, respectively.
“Overall, I feel more secure driving in a Tesla Model S than any other connected vehicle on the road”, Mahaffey wrote.
Analysts polled by Thomson Reuters had expected a 60-cent-loss per share vs. EPS of 11 cents a year earlier, with revenue rising 35% to $1.16 billion.
Tesla Motors founder Elon Musk is readying a new software update for the Tesla Model S that will introduce a number of autonomous features to the vehicle.
As such, the target deliveries for Tesla’s Model S and Model X cars are now between 50,000 and 55,000. “To build long- term value, our first priority always has been, and still is, to deliver great cars”.
Tesla’ net loss almost tripled to $184 million in the second quarter as it spent heavily to prepare for the launch of the Model X. Tesla said it’s not totally confident that suppliers will be able to match its production demands, yet another reason for the lowered expectations for its total annual sales this year. The stock was trading close to 6 percent down, during afterhours trading on the 5 August. Further, the letter states that the firm is making the bodies for the “release candidate” in its new body shop, which has 500 robots working “we fine-tune and validate our production processes”. Tesla Motors said it can produce 1,600 to 1,800 Model S and Model X vehicles per week next year.
Advertisement
Despite having recently diversified into the home energy business, Tesla’s auto production still accounts for the vast majority of its revenues – US$1.12bn of non-GAAP revenue – but marks a reduction in vehicle delivery numbers to the shop floor. Plus, the company anticipates it can harvest additional cash once the Model X starts selling. But Tesla does need to get the SUV out the door as soon as possible before it has an angry mob of pre-order customers banging at its gates.
