Financial report: Tesla reported more than $400 million of losses

Financial report: Tesla reported more than $400 million of losses

Tesla produced and delivered more vehicles in the second quarter of 2019 (87 048 produced and delivered 95 200 EVS) than any other quarter in the company’s history, but still reported a net loss of $408 million, which means a loss of $2,31 per share, although a noticeable improvement compared to a net loss of $3,06, which the company announced in the second quarter of 2018. This improvement compared to the unexpectedly large loss of $702 million that Tesla announced in the first quarter of 2019, but this means that Model 3 is still successful enough to permanently remove the company from the crisis.

Record quarter helped the company to earn revenue of $6.3 billion and $117 million loss was obtained due to restructuring costs related to layoffs and closing stores. Tesla also shared that we ended the quarter with $5 billion cash (cash and equivalents), which is “the highest level in the history of Tesla”, mainly due to the capital increase in may at $2.7 billion.

One thing that affects the profitability of the company is that sales of Model S and Model X is basically slowed down. On the one hand, this was to be expected since they are older models that cost tens of thousands of dollars more than the new Model 3. But it also brings in more profit per car for Tesla, and therefore the drop in popularity of the absorbing company.

Tesla updated the Model S and Model X in April with technology from Model 3, which significantly increased their total reserve and improved charge speed. But the rumors about a complete upgrade of the flagship cars of the company were recently suppressed by CEO Elon Musk.

Model 3 was the most sold electric car in the world in 2018, and for the first time in company history, Tesla has recorded a profit. The company sold about 250,000 cars a year, which is two times increased the number of Tesla on the roads.

The company began to face questions about the demand for its electric vehicles in North America at the beginning of this year. Vehicle Tesla no longer eligible for the full Federal tax credit for electric vehicle $7 500 from 1 Jan. But from 1 July this year, the Federal tax credit for a Tesla again reduced $1 875 and will be valid until 31 December 2019, before it is completely phased out.

At the beginning of the year, the company has also slowed sales of the Model 3 to market in the US to start shipping to Europe and China, the two new key market for the company.

Earlier this year, Musk said that Tesla probably won’t make a profit in the first quarter. However, the Director General expected that Tesla will reach profitability in the second quarter of this year, but that did not happen.

News tags