Oxford Reports

Latest and Independent News

Tesla second quarter earnings
News Technology

Tesla Reports Second Quarter Earnings And Results Are No Good

Tesla, the electric maker reported second-quarter earnings on Wednesday. Its share price plummeted by 10%. Elon Musk said that he expected the company to go profitable or at least break-even for the second quarter. But couldn’t happen. The company also fell low on the analyst expectation but now Mr. Musk to expect to go profitable for all the quarters ahead.

In the letter to shareholders, he said Tesla was “most focused on expanding our manufacturing footprint in new regions, launching new products and continuing to improve the customer experience while generating and using cash sustainably.”

The Silicon car company delivered an adjusted loss of $1.12 per share while the analyst expected 40 cents per share loss. If compared to the last year the company made a loss of $3.06 per share. It’s no doubt that the company reported larger than life loss but in the letter, he added: “continuous volume growth, capacity expansion, and cash generation will remain the main focus.”

Tesla generated $6.35 Billion in revenue vs $6.41 Billion[analyst expectations]. In the letter, he reiterated the production goals of the company. “We are working to increase our deliveries sequentially and annually, with some expected fluctuations from seasonality,” Mr. Musk said in the letter. “This is consistent with our previous guidance of 360,000 to 400,000 vehicle deliveries this year.”

There’s no doubt that Tesla increased its production capacity and delivered 95,200 vehicles principally driven by Model 3 Sales. However, it saw a drop of 21% sales of  Model S large sedan and Model X sport-utility vehicle. It has slashed down the price from $57,000 of Model 3 to $35,000 this year.

Going forward the company is planning to improve its existing factories including its battery plant outside of Reno, Nevada and a car assembly in Fremont, California. The sales of its energy storage products — the Powerwall and Powerpack — increased during the second quarter, sales of its solar energy products declined.

On a brighter note, Tesla has more liquid than ever. It has now $614 Million free cash flow.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *

Brooke Binkowski
Experienced, enthusiastic, award-winning multimedia reporter and editor (digital storytelling, radio, print, video, photography) with especially strong interest in human rights, arts & culture, geekdom, border, environmental, and immigration issues. Backpack reporter.