Tesla loses $717.5mn in Q2, breaking own record from previous quarter

02 August, 2018, 16:31 | Author: Lora Ball
  • Tesla plans to profitably build up to 55,000 Model S cars in third quarter

Tesla stock surged as much as 13% Wednesday evening after a quarterly earnings call in which Musk apologized on three separate occasions, including personally saying sorry to two Wall Street analysts he'd berated on the previous quarter's conference call. In the course of the past quarter, Tesla set up a fourth auto production line in a tent-style structure at its vehicle factory in Fremont, Calif., and CNBC reported that Tesla workers were brought in from out of state for a quarter-ending push to build batteries and cars.

Tesla stock soared in after-hours trading, climbing briefly to a full 11 percent gain before relaxing to a bit over 9 percent, at $329, up from $300.84 at the close of regular trading hours.

The result is significant, because Tesla is racing against the clock to keep from running out of money before it can build enough of its new, more affordable Model 3s to turn a profit.

Furthermore, the Model 3 is behind schedule, and investors are concerned consumer infatuation won't hold.

The period ended with US$2.78 billion in cash, after the company spent $609.8 million in capital expenses during the quarter.

The company said it has cut back on capital spending by changing its strategy to produce the Model 3 on existing assembly lines, one in a giant tent, rather than adding all-new lines. It expects to produce between 50,000 and 55,000 Model 3s this quarter. The vehicle is the first that Tesla is trying to produce in numbers to rival established carmakers, such as General...

Musk said some customers would begin receiving the update in around four weeks and all Tesla customers who purchased Autopilot would receive the update in September. Tesla blames production difficulties in this area on hundreds of robotic lifters that bring components to the line to be attached to the painted metal body.

More news: Harley Davidson Announces Huge Plans for India; 250-500 CC Bikes Arriving

The net loss more than doubled from the same quarter a year ago, and was slightly larger than the first quarter.

Some analysts viewed that claim optimistically.

We're adding a "party & camper mode" soon to S/3/X, so your auto can maintain air flow, temp, selective lights, music & power devices for 48 hours or more while parked.

Tesla also faces broader challenges that could make its cars more hard to sell.

Earlier this month, he made an unfounded criminal accusation about one of the rescuers who helped save a group of young boys and their soccer coach from a flooding cave in Thailand. CEO Musk is under particular scrutiny after his comments during a May earnings call in which he rebuked analysts for asking "boring, bonehead" questions.

His $5.5 billion Greenlight Capital lost 18.3% in the first half of 2018, he told investors in a letter Tuesday.

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