Published: Thu, August 02, 2018
Finance | By Marshall Campbell

Tesla's biggest net loss helps meet production target

Tesla's biggest net loss helps meet production target

Analysts polled by FactSet expected a $2.88 loss per share.

The results marked a critical moment for a $50 billion company long believed to be on the brink.

Tesla has begun to lay off 9 percent of its workforce as it tightens spending. Compared with the first six months of past year, the company's loss was up from about $800 million to more than $1.5 billion. Analysts suggested it would need to raise additional funds before the. In a letter to investors, Tesla called this a "significant achievement", something it expects to jump by around 15-percent in its third quarter and 20-percent in its fourth quarter.

During Tesla's Q2 earnings call on Wednesday, Elon Musk apologized to two Wall Street analysts for his behavior during the Q1 call.

It shipped 40,768 cars in the second quarter, including 22,319 Model S and Model X vehicles, and 18,449 Model 3s.

Demi Lovato struggling with extreme side effects after reported overdose
She allegedly refused to tell the paramedics what drugs she had taken, but sources say it appeared to be some sort of opioid. The "Confident" singer is reportedly still severely ill, and doctors haven't decided when she'll be able to go home.

On the call, Mr Musk also said he expected the company to avoid returning to the markets for capital and to be "essentially self-funding on a go-forward basis". The stock has slumped 19 per cent since a 2018 high of US$370.73 in June. If the company can hold to its lofty promises of ramping up Model 3 production, and if it does indeed turn a profit and improve margins, Tesla's balance sheet might soon resemble that of a real automaker.

Tesla said that during July it had hit an earlier goal of building about 5,000 Model 3s per week "multiple times", and reiterated a target of producing 6,000 per week by late August. The company said it expects to reach 10,000 Model 3s per week "sometime next year".

Model 3 production woes have been nearly legendary at Tesla. Though promised as a $35,000 mass-market vehicle, the only models available now sell for about $50,000 or more. Musk was also enthusiastic about the premise of Tesla owners receiving prizes for completing the Atari titles. We assume that would hold true for all games, because we're fairly certain the motoring public isn't ready for an autonomous vehicle that lets drivers have a go at Pac-Man while rolling down the highway at speed. In addition to all these issues, the company is finally facing competition from the auto industry.

After quietly upgrading its semi-autonomous driving suite, Autopilot, almost a year ago, Tesla has been working hard on its next-generation hardware.

The recent addition of a new "tent" production line appeared to represent a parallel manual line for general assembly.

Like this: