Last month Tesla Motors Inc.’s stocks went down more than 3% after they reported a 14,370 electric vehicle delivery-9,745 of it are its model S sedans while the remaining 4,625 are the luxurious Model X crossover.
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Tesla’s second-quarter loss grew almost 60 percent to $293 million as it delivered fewer vehicles than planned.
United States carmaker Tesla disappointed with its second quarter results as it recorded a $293m loss for the period compared to previous year.
“We were in production hell for the first six months of this year”, he said during an earnings call. On the revenue front, Tesla reported a jump of 30% year over year with the sales coming in at $1.56 billion, falling short of the consensus by $60 million.
Tesla reported a loss of $293m (£220m) for the second quarter – the electric vehicle maker’s thirteenth consecutive quarterly loss. 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.
“The priority vehicle development after the Model 3 would be the Model Y, the compact SUV, because that’s also a auto that where we expect to see demand in the 500,000 to 1 million unit per year level”, Musk said.
Tesla’s shares slipped US$0.29 to US$225.50 after-hours trading. Notably, Tesla had set a target to deliver 80,000 vehicles this year.
This results in an 18 percent increase in production since last quarter and a 43 percent production increase year over year. Analysts had expected a loss of 52 cents per share, according to a Thomson Reuters poll.
Tesla lost a $1.06 a share, the company said. The small SUV will be called, as expected, the Model Y. That would extend the four-vehicle lineup to the models “S3XY”. The company has already received pre-orders of over 400,000 Model 3 cars. Musk said. “When all of that’s lumped together, it can be confusing”.
The Model 3 is Tesla’s attempt to widen its market appeal with a more affordable vehicle.
The automaker said it added $1.7 billion to its cash coffers through a stock sale in May and ended the second quarter with $3.25 billion in cash and cash equivalents. Just as importantly, Tesla said it remains committed to producing 500,000 vehicles in 2018. Musk said the company missed production targets because of a rampup in production.
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Tesla this week also announced an agreement to pay $2.6 billion in stock for SolarCity Corp., a leading provider of solar-power panels that’s also led by Musk. It was the 13th consecutive quarterly loss. In June, a Tesla Model S collided with a truck while Autopilot was engaged-the first recorded death in a semi-autonomous vehicle.
