Skip advert
Advertisement

Tesla reports second quarter loss of £220million, production still growing

Tesla continues to make a loss, but still has big plans for the future

Tesla Model 3 press silver

Tesla Motors has announced its financial results for the second quarter, confirming that the company continues to make a loss – but it’s not all bad news for the California-based electric vehicle firm.

While posting a loss of £220million, the company is also investing heavily, with £222million put towards production expansion and the firm’s enormous battery ‘Gigafactory’, with significant expenses as the company continues to engineer its upcoming affordable electric vehicle, the Model 3.

Advertisement - Article continues below

It’s been a busy quarter for Tesla too. As well as the opening of the Gigafactory – which is 14 per cent complete at the moment, but already in operation – the last few months have brought Elon Musk’s ‘Master plan, part deux’ announcement for Tesla’s future, the announcement of a merger with SolarCity, and a significant boost in cash flow from Model 3 deposits.

Conversely, Tesla still isnt’ delivering as many Model S and Model X vehicles as it intends, though the company puts that down to production rather than sales, as the firm is still ramping up production.

> More: Tesla confirms electric minibus and new Model Y SUV

Tesla notes that the majority of its Q2 production – almost half – came in the last month of the quarter, by which point it was making 2000 cars per week.

Between the Model S and Model X, Tesla expects to produce 50,000 cars over the second half of the year. Overall, new vehicle orders grew year-on-year by 67 per cent.

There are plans to open more Tesla stores across the globe and the company ‘anticipates adding new partners’ to fund its continuing growth.

There’s little doubt the next few years will also see losses - Tesla anticipates a continual rise in operating expenses, mainly thanks to the Model 3 – but all remains calm on the surface. With Model 3 engineering well underway, Tesla will be hoping it can bring the car to market on cue: it is almost certainly the car required to pull Tesla back into the black.

Skip advert
Advertisement

Recommended

The 2078bhp Rimac Nevera R has shattered acceleration records and hit 268mph
Rimac Nevera R record
News

The 2078bhp Rimac Nevera R has shattered acceleration records and hit 268mph

The all-electric Rimac Nevera R hypercar is the fastest-accelerating production car the world has seen, timed and verified
10 Jul 2025
New Hyundai Ioniq 6 N gets 641bhp to give Porsche Taycan a run for its money
Hyundai Ioniq 6 N
News

New Hyundai Ioniq 6 N gets 641bhp to give Porsche Taycan a run for its money

After months of test mule sightings and teasers, Hyundai has finally launched its second production performance EV at the 2025 Goodwood Festival of Sp…
10 Jul 2025
‘I’m not convinced Mercedes-AMG can fill the V8 void in its EVs’
Mercedes-AMG GT
Opinion

‘I’m not convinced Mercedes-AMG can fill the V8 void in its EVs’

The next Mercedes-AMG not only won’t have a V8, it won’t have an engine at all. So where will the heart come from?
4 Jul 2025
The BMW M3 is going electric – test mules spied on the road
Electric BMW M3 – front
News

The BMW M3 is going electric – test mules spied on the road

The electric version of the next-generation BMW M3 has been spied testing again, revealing new details about the upcoming model
4 Jul 2025
Skip advert
Advertisement

Most Popular

£15k off Alfa Romeo Stelvio Quadrifoglio super SUV
Alfa Romeo Stelvio Quadrifoglio
News

£15k off Alfa Romeo Stelvio Quadrifoglio super SUV

If you have to have an SUV, a Stelvio QV is acceptable. Now it's being heavily discounted.
8 Jul 2025
MST Mk1 Sports is a more affordable less extreme Ford Escort recreation
MST Ford Escort front
News

MST Mk1 Sports is a more affordable less extreme Ford Escort recreation

Costing a tenth of most made-new classics, the MST Mk1 Sports is comparatively accessible
8 Jul 2025
Mini JCW 2025 review – too feisty for its own good
Mini JCW – front
Reviews

Mini JCW 2025 review – too feisty for its own good

The petrol-powered JCW lives on – for now. But in its latest incarnation, has this supermini survivor become too hardcore?
6 Jul 2025