Tesla stock was near 230, up almost 2%, in afternoon trading in the stock market today, above its 50-day moving average but down 4% in 2016.
Advertisement
The company is still trying to meet a 2018 release for its new Model 3 sedan, the first designed for the mass market.
Here’s a review of the quarter’s financial results, along with a look at some key points from the shareholder letter.
The earnings report followed what has been a roller coaster month, even by the standards of a company like Tesla that has previously teetered on the edge of bankruptcy.
The company reported an adjusted loss of $1.06 per share; analysts were expecting the loss to be 60 cents.
Elon Musk, the company’s visionary CEO and founder, however, remains unfazed despite the struggling financials of Tesla Motors as the company performed much worse compared to Wall Street expectations.
Tesla’s revenue was about $1.3 billion.
Excluding items, Tesla lost US$1.06 per share in the three months ended June 30, compared with 48 U.S. cents a year earlier. This loss was greater than analysts surveyed by Bloomberg, whoo had expected a loss of USUSUS$0.60 per share.60 per share.60 per share, and analysts polled by S&P Global Market Intelligence, who had anticipated a loss of US$0.65 per share on revenue of US$1.65 billion. The company produced 18,345 vehicles during the April-June period, a quarterly record, but many were produced so late in the quarter that it delivered only 14,402, which was short of its goal. Model X accounted for about 4,600 of these deliveries – up from 2,400 in the prior quarter.
In this part, we’ll take a closer look at the factors that drove Tesla’s revenues higher in 2Q16.
Tesla Motors Inc. posted a loss for the 13th straight quarter and cautioned investors that it faces sharply rising expenses in the quarters to come as it gears up to boost production capacity to add a new model. The Model 3 is said to have gathered some 370,000 preorders globally. Reaching the production target is crucial for Tesla. Via his Twitter handle, Musk confirmed that Tesla will soon be expanding its portfolio with the Model Y compact SUV and an all-electric minibus. Image source: The Motley Fool. Earlier this week the companies agreed to a $2.6 billion merger. Citing decreasing production hours per vehicle, Tesla said it was on track to deliver another 50,000 vehicles by the end of the year, meeting the low end of its 80,000-90,000 vehicle delivery target for 2016. For a good number of months, they worked on completing the design phase of the new Model 3 for its scheduled delivery next year.
Advertisement
At the beginning of Q2, we had very few Model X test drive cars in our stores and no refreshed Model S vehicles. The operating expenses of Tesla also rose to $512.8 million – an increase of 34% from previous year.
