Tesla’s adjusted net loss of US$150 million, or US$1.06 per share, fell far short of analysts’ estimate of a US$0.59 loss, according to FactSet.
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The second quarter loss of $293 million was a 59 percent increase from the same quarter a year ago, on revenue of $1.3 billion, up 33 percent from last year. He said that Tesla will continue to improve the technology with the goal of achieving full autonomy.
The Model 3 beefs up a Tesla lineup that includes the Tesla Model S sedan and Model X SUV.
Maybe Tesla has come up with a simple version of the doors for the Tesla Model Y?
Production would likely start within five years because, “I consider like anything past five years as infinity”, Musk said. The Model 3 EV will be mass produced, and it has a relatively inexpensive price tag of just $35,000 (before any government incentives are applied.) Of course, it won’t have the same performance as a Model S or Model X, but it does boast a respectable 0 – 60 miles per hour time of under 6 seconds. The new sedan is expected to roll out next year, and carry a starting price of $35,000. The company expects that it will be profitable in the next two quarters, except for the capital spending required for engineering and ramping up the production of its mass-market Model 3, which is scheduled to have a base price of almost $35,000.
But Musk doesn’t consider either vehicle to be the next big Tesla project.
Baird Equity Research still has faith in Tesla’s technology and innovation.
But that won’t stop Tesla from beginning to design commercial vehicles.
The deliveries were lower “due to the extreme production ramp in Q2 and the high mix of customer-ordered vehicles still on trucks and ships at the end of the quarter”, the company said.
Tesla said Wednesday 5,150 vehicles were still in transit at the end of the quarter and would be delivered early in the third quarter.
Tesla expects output to reach 2,200 vehicles per week in the third quarter and 2,400 vehicles per week in the fourth quarter. It maintains annual delivery guidance of 80,000-90,000 units, and plans to sell 50,000 cars in the remaining half of 2016. The electric auto producer can expand into solar energy or mass transit provider, but it is unlikely fundamentals for the company to change. The deal still needs approval from the Securities and Exchange Commission and shareholders. It is just how Elon is going to fund all this for both companies.
The update also said that Tesla is “accelerating store openings and plans to add a new retail location every four days on average during the remainder of Q3 and through Q4”.
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Another analyst group argues Musk’s business model is complicating the company’s Model 3 production, as well as the company’s bottom line. Those sites could expand to offer SolarCity products, if the proposed merger is approved.
