Electric car maker Tesla drives deeper into the mire with more losses
Tesla reported a loss of $293m (£220m) for the second quarter – the electric car maker’s thirteenth consecutive quarterly loss.
Sales for the period from April to June were $1.3bn, which was less than analysts’ forecasts of $1.6bn. Tesla delivered 14,402 cars during the quarter missing its target of 17,000.
It is the second consecutive quarter that Tesla has missed production targets, raising doubts about whether it will reach its full year goal.
Tesla reported that nearly half of its second quarter production occurred in the final four weeks of the quarter.
But the company said it was on track to deliver 50,000 Model S and Model X vehicles in the second half of the year.
New vehicles orders rose by 67% compared to the same time last year.
“Making cars is hard… and they still are in the growth stage. The market seems to want to give [Mr Musk] the benefit of the doubt,” said Ivan Feinseth an analyst at Tigress Financial Partners.
In the second quarter Tesla completed the design work on its Model 3 sedan and intends to start production before the end of the year.
The Model 3 is Tesla’s attempt to widen its market appeal with a more affordable car. Its starting price is expected to be $35,000.
The company also plans to add new stores in Taipei, Seoul, and Mexico City along with extra outlets in markets where it already has a presence, such as California.
Tesla’s chief executive Elon Musk announced last month plans to expand the company’s vehicle line to include electric trucks and buses. He opened the firm’s Gigafactory in Nevada last week which Tesla promises will dramatically lower the cost of batteries for cars.