Tesla Posts $6.3 Billion Q2 Revenue Despite Wider-Than-Expected Losses
Tesla releases its second-quarter 2019 financial results, showing a significant revenue increase alongside a cash reserve that reaches a record high. However, a larger-than-anticipated loss per share causes the stock to drop in after-hours trading.
Tesla releases its second-quarter 2019 financial results, reporting $6.3 billion in revenue and a Non-GAAP loss of $1.12 per share. The revenue figure meets Wall Street expectations, but the loss per share falls significantly below the anticipated $0.54. Despite this disappointing earnings metric, the results show a major improvement over the previous quarter, which brought in only $4.5 billion in revenue and saw a massive loss of $4.10 per share.
The automaker boosts its cash reserves to approximately $5 billion, marking the highest cash level in the company's history. Tesla achieves this milestone by generating $614 million in free cash flow and successfully closing a major capital raise during the quarter. The company also maintains its full-year guidance and expects to return to slight profitability during the current third quarter.
Investors focus on the steeper-than-expected losses, driving Tesla's stock down by as much as 10% in after-market trading. Alongside the financial numbers, Tesla confirms several major operational updates, including Model Y production progress at its Fremont factory and impressive construction advancements at Gigafactory 3 in China. Additionally, the company announces that co-founder and CTO JB Straubel is stepping down from his executive role to become an advisor.