Tesla Sales Are Thriving, But It Still Lost $408 Million In The Second Quarter

Tesla delivered a record number of vehicles last quarter, but nevertheless continues to lose significant amounts of money.

In a quarterly earnings report released by the car manufacturer, it is revealed that it lost $408 million in the second quarter of the year. Even so, that’s an improvement from the $718 million loss it posted 12 months ago and was joined by revenue totaling $6.35 billion, a considerable 59 per cent increase over the previous year.

Tesla is spending a significant amount of cash on its global expansion, which includes an aggressive push into China and the construction of a factory in Shanghai. In addition, Tesla is pushing forward with the development of the Model Y before it reaches the hand of customers in late 2020. The electric carmaker is also working on its very first all-electric pickup truck.

Also Read: Tesla Drops Standard Range Model S And Model X From Lineup

While Tesla’s losses and revenues for the second quarter of this year were better than Q2 2018, they did fall short of some estimates, USA Today reports. According to analysts from S&P Global Market Intelligence, second quarter revenue was predicted to sit at $6.44 billion, while the company was expected to post a net loss of $298 million. As a consequence, after the release of its quarterly results share price fell by 11.1 per cent in after-hours trading.

Earlier this month, Tesla confirmed that it delivered a record 95,200 vehicles in the second quarter, a 134 per cent jump over the previous year. The Model 3 accounted for 72,531 units, 3 while sales of the Model S and Model X totaled 17,650, a 21 per cent decrease over the previous year.

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  • Aqua Boogie

    Tesla pushes through investing in growth, numbers and market share. Good news. Profitability is not yet an issue. 2021 maybe, when the Y sales have consolidated. Also the year the first real competitors appear.

    • Super Rob

      It will be interesting as the competition starts bringing their competitive vehicles. Porsche has the cache of Tesla and the Taycan deposits are surpassing the initial run. Mercedes is getting ready as well. Very interesting 3 years coming up.

  • SPEEDY

    Tesla must have a marketing division specifically purposed to put out daily stories regarding the TESLA Brand. They’re not that compelling
    The Law of Diminishing Return set in long ago for me. I hope they go away soon

    • WHY THE HATE FOR TESLA?
      I ASK THAT BUT NO ONE EVER HAS AN ANSWER.

      • SPEEDY

        Almost 5,000 Million dollars in government subsidies… 13 years of non profitability… and snake oil tactics. That’s my answer.

        • YOU MEAN THE SAME SUBSIDIES EVERY MANUFACTURER OF EV’S IS GIVEN?

        • TheBelltower

          The oil & gas sector receives annual subsidies and tax breaks of over $20B annually. All in spite of being a century old industry and incredibly profitable.

        • PhilMcGraw

          Well their main subsidy, which was the federal tax credit that was paid to individuals buying electric cars, is supposed to essentially fade out altogether by next year. They do still receive government grants and solar subsidies, but not in the same amount as that tax credit gave them.

          It also pales in comparison to the amount of money the federal government lost bailing out GM and Chrysler. The government lost over $10 billion.

  • PhilMcGraw

    I know Tesla wants to keep the Model S and X so that it can keep its “S3XY” moniker, but in all honesty those models haven’t been selling well. The latest quarter showed 81% of sales being from the Model 3. I would guess when the Model Y is introduced that you will see 95%+ of sales be from the 3 and Y unless Tesla does a full refresh of the S or X.

    I know people will disagree, but I think they should just cut the S and X models and focus on the 3, Y, and upcoming pickup truck. People are more likely to spend money in the $40,000 – $60,000 range than they are in the $70k+ range. Rivian and Porsche are going to soon be entering that $70k range and I just think it will split the market more and make it harder to be profitable in that area. With Ford, Chevrolet, and VW to be going into the $30k-$40k range, I think it just makes the most sense to stick with the $40k-$60k range.

  • Mr. EP9

    Unsurprising.

  • Jason Miller

    It’s hilarious to me the negativity surrounding a $90 million difference in earnings versus the prediction when we’re talking about BILLIONS overall. Nit picking.

  • EyalN

    When you are selling a product you need to calculate profit.
    Tesla just needs to take the price up in about $10000 and they will be in profit.
    Or wait for the next president and ask him for a billion dollars

    • Mike anonymous

      Not just when you are selling, but also when you are creating.

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