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Tesla posts $408M loss despite jump in electric car sales

Tesla posts $408M loss despite jump in electric car sales

FINANCIAL NEWS

Tesla posts $408M loss despite jump in electric car sales


Facing pressure to minimize its losses and boost sales, Tesla achieved both in the second quarter but still disappointed investors.

Tesla lost $408 million in the second quarter, marking an improvement from a $718 million loss a year earlier.

Revenue totaled $6.35 billion, up 59% from a year earlier.

But both earnings and revenue fell short of expectations as the company scrambles to bolster its financial position.

S&P Global Market Intelligence analysts had estimated second-quarter revenue of $6.44 billion in revenue and a net loss of $298 million.

Tesla’s stock rose 1.8% to close at $264.88 during regular trading hours on Wednesday. But the share price fell 11.1% in after-hours trading to $235.50.

The drop ends a hot streak for the stock in recent weeks after CEO Elon Musk pledged that demand is strong despite concerns about the company’s sustainability.

Tesla sold 95,200 vehicles in the second quarter, up 134% from a year earlier.

That included 72,531 units of the Model 3 electric car, which nearly tripled the amount from a year earlier. The average Model 3 was sold for $50,000 in the second quarter.

But sales of the ultra-luxury Model S sedan and Model X SUV are slowing down as the vehicle body styles age and customer gravitate toward the cheaper Model 3. Sales of the Model S and X totaled 17,650 in the second quarter, down about 21%.

Is Tesla demand struggling?: ‘Absolutely not,’ CEO Elon Musk says

While overall Tesla sales continue to increase, the company is also spending heavily on future projects, including its under-construction China factory and the forthcoming Model Y crossover. The company is also expected to reveal an electric pickup this year, though it’s unclear when it will be available for sale.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.



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