Tesla Reports Wider Than Expected Q2 Loss Despite Record Deliveries
Tesla shares drop after the electric car maker posts an adjusted loss of $1.12 per share, missing analyst expectations. The company maintains its full-year delivery guidance of up to 400,000 vehicles.
Tesla shares plunge 10% in extended trading after the electric car maker reports a larger-than-expected loss for the second quarter. The company posts an adjusted loss of $1.12 per share on $6.35 billion in revenue, missing analyst expectations of a 40-cent loss on $6.41 billion in revenue. Despite this financial shortfall, Tesla reaffirms its full-year delivery guidance of 360,000 to 400,000 vehicles.
To meet this ambitious goal, Tesla needs to deliver over 200,000 vehicles in the second half of the year. The company currently operates at a weekly production run-rate of 7,000 Model 3 vehicles and aims to increase that number to 10,000 per week by the end of 2019. Tesla also plans to improve production efficiency at its existing factories in Nevada and California.
The earnings report follows a record quarter for Tesla, which delivers 95,200 vehicles and produces 87,048 cars during the period. Additionally, Tesla prepares to start Model 3 production in China by the end of the year to reduce delivery costs and earn local regulatory credits. The company attributes a decline in its average vehicle selling price to the rollout of the lower-cost Model 3 Standard Range Plus and the sale of older Model S and Model X inventory.