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 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.

Subscribe to evo magazine

evo is 21 and to celebrate, we're returning to 1998 prices! Subscribe now to SAVE 39% on the shop price and get evo for its original cover price of £3.00 an issue, plus get a FREE gift worth £25!

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.

Advertisement
Advertisement - Article continues below

> 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.

Advertisement

Recommended

Visit/tesla/201982/tesla-cybertruck-unveiled-no-it-really-does-look-like-that
Tesla

Tesla Cybertruck unveiled – no, it really does look like that

22 Nov 2019
Visit/tesla/17581/tesla-model-3-specs-prices-and-full-details-on-the-all-electric-compact-exec
Tesla

Tesla Model 3: specs, prices and full detail

1 May 2019
Visit/tesla/16777/tesla-unveils-model-y-mid-sized-suv-to-rival-mercedes-eqc
Tesla

Tesla unveils Model Y mid-sized SUV to rival Mercedes EQC

15 Mar 2019
Advertisement

Most Popular

Visit/volkswagen/golf-gti/22866/new-volkswagen-golf-gti-leaked-ahead-of-reveal
Volkswagen Golf GTI hatchback

New Volkswagen Golf GTI leaked ahead of reveal

Following a slew of spy shots last year, a camo-free Mk8 Golf GTI surfaces online
20 Jan 2020
Visit/ford/202122/ford-focus-rs500-v-audi-rs3-new-v-used
Ford Focus RS

Ford Focus RS500 v Audi RS3 – new v used

One’s an eight-year-old Ford, the other a brand new Audi. But which of these five‑cylinder superhatches deserves your £45k?
18 Jan 2020
Visit/lotus/202124/lotuss-badge-engineered-specials-from-cortina-to-carlton-and-vx220
Lotus

Lotus's badge-engineered specials: from Cortina to Carlton and VX220

Some collaborations more secretive than others, a handful of models have received backing from Lotus over the years. We've gathered the very best
19 Jan 2020
Visit/hyundai/201819/hyundai-i30-fastback-n-versus-the-nurburgring
Hyundai i30 N

Hyundai i30 Fastback N versus the Nurburgring

We brought the Hyundai i30 Fastback back to its spiritual home in Germany's Eifel mountains, where there is a racing track you might well have heard o…
7 Oct 2019