Thanks to gains in Model 3 output, Tesla’s second-quarter revenue grew by more than $1 billion. Unfortunately, the company’s net loss rose dramatically as a result. In a statement, Tesla said it achieved its target of producing 5,000 Model 3 vehicles per week and that it aims to make 6,000 per week by the end of August. It’s expect to produce 50,000 to 55,000 Model 3 vehicles in the third quarter — a sharp increase from the previous quarter.
“It took 15 years to execute on our initial goal to produce an affordable, long-range electric vehicle that can also be highly profitable,” Musk and Chief Financial Officer Deepak Ahuja wrote in a letter to shareholders. “In the second half of 2018, we expect, for the first time in our history, to become both sustainably profitable and cash-flow positive.” Tesla has only turned a profit in two quarters. CBS News reports: The electric vehicle company founded by billionaire Elon Musk reported an adjusted net loss of $717 million for the period on revenue of $4 billion. Tesla went through $739.6 million in cash between April and June, less than the $900 million Wall Street analysts had forecast. In another boost, the automaker said it has trimmed its capital spending by manufacturing the Model 3 on existing assembly lines, rather than building new lines. Although Tesla is burning through less cash, it continues to lose money. The company reported an adjusted net loss of $3.06 per share, more than analysts expected. The loss more than doubled from the same quarter a year ago.
Slashdot reader Rei adds: After the release of Tesla’s Q2 results and followed by the investor call, Tesla’s stock surged around 9% in aftermarket trading today. Among the main drivers: automotive gross margins rose to 21%, Model 3 gross margins turned positive (before the start of sales of AWD and performance variants, which are making up half of all new orders), and the reiteration and reinforcement of guidance for sustainable profitability from Q3 onward. […] While no longer using a reservation system in the U.S. for first-production orders (retaining it only for less expensive Model 3 variants and overseas orders), new North American first-production orders are making up a large portion of current orders; consequently, no changes are announced for timing of overseas orders. The average selling price is expected to remain high “for several quarters” due to “a richer mix in the initial wave of Model 3 deliveries to Europe and APAC”; the “normalization of the Model 3 average selling price” is anticipated in the second half of 2019, and is not expected to impact gross margins, due to improved production cost efficiency over time. On the conference call, Musk sounded tired and admitted to getting too little sleep. He apologized twice, but was told by an investor: “Don’t let the trolls get you down, but we do like it when you tease the trolls a bit.”
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