Tesla posts $150 million Q2 loss, may miss 2016 delivery targets - Roadshow

Andrew Cummings
August 7, 2016

Tesla said its net loss widened to $US293.2 million, or $US2.09 per share, in the second quarter, from $US184.2 million, or $US1.45 per share, a year earlier.

With the earnings, the automaker reiterated that the company has produced record 18,345 vehicles in 2Q, and that it has ended this second quarter building around 2,000 vehicles per week.

Basically we were in production hell for the first six months of this year.

Perhaps nobody is as optimistic as Musk, as he said in the call that the problems that the company faced in the production of the Model X electric SUV are now solved. This is down to the fact that Tesla did have difficulty with production of the wing doors, while buyers also had issues to.

The electric-car maker's reported a second-quarter adjusted loss of $1.06 per share on $1.56 billion in sales.

Tesla's revenues for the quarter improved to $1.27 billion from $955.0 million a year ago.

Tesla shares fell less than 1 percent in aftermarket trading, to $225.79.

Tesla wanted to deliver 17,000 vehicles in the second quarter - a number analysts doubted after previous shortcomings. They projected the company would bring in $1.6 billion in revenue during the period. For the Model 3 program, which Tesla expects to generate $20 billion annually, Tesla has moved on to tooling, production planning, and validation. "We continue to believe demand for Tesla vehicles remains strong, and believe anything Tesla can do to address demand would benefit the stock", analyst Ben Kallo wrote.

Tesla said it completed the design phase of the Model 3 in the second quarter and has already installed some production equipment for the vehicle. The company has some 375K pre-orders for its upcoming Model 3, which the company is touting as being more affordable.

This probably won't come as a surprise to anyone, but Tesla has confirmed that the last vehicle of its "Model" lineup, the Tesla Model Y compact crossover, will be the company's next biggest priority after settling the Model 3.

Some analysts also questioned whether the deal - which still requires shareholder approval from both companies - would divert Tesla's attention from an ambitious plan to significantly expand electric-car production in the next few years.

Musk also proposed combining the solar panel company SolarCity, a firm that he also chairs, with Tesla to double down on renewable energy generation.

In the near-term, the company aims to make Autopilot, its semi-autonomous system, 10 times safer than the average USA vehicle.

"We aren't entirely clear as to why they opened a formal investigation", Musk said of United States regulators.

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