Tesla reports 13th straight quarterly loss, more pressure on production

It aims to end the third quarter producing 2,200 vehicles per week and increase to 2,400 vehicles per week in the fourth quarter. The company now expects to make 500,000 vehicles by 2018, not 2020 as originally planned.

Its been a turbulent quarter for Palo Alto, California-based Tesla.

Musk warned he would fire suppliers and reorganize internal teams who fail to meet a target date of July 1 to begin production of the Model 3, even while acknowledging it will not be possible to meet that date.

Electric auto developer Tesla (NASDAQ:TSLA) expects to "blow people's minds" with its self-driving vehicle technology, although its results failed to achieve quite the same effect. Musk said the new vehicles, dubbed "Tesla Minibus" and "Tesla Semi", will be revealed within the next six to nine months, before going into mass production "within low single digit years".

Tesla's second-quarter loss grew about 60 percent to US$293 million as it delivered fewer vehicles than planned. Wednesday reported a second-quarter loss that widened from a year ago, hurt largely by higher operating costs which offset an increase in revenues.


Teslas shares rose less than 1 percent to $227.50 in after-hours trading. Rather, the company announced improvement in the number of orders for Model S, electric sedan. The company also said that its production and demand is on track to support 50,000 deliveries for the upcoming second half. That would put the company close to its previously stated goal of 80,000 vehicle deliveries for calendar 2016.

"The most critical numbers in Tesla's Q2 report, revenue and profit, came in worse than expected, though that will have minimal impact on the stock's value", said Karl Brauer, a senior analyst for Kelley Blue Book.

SolarCity's chairman and biggest shareholder, Musk has said the combined company will help save at least $150 million (roughly Rs. 1,000 crores) a year and require only a "small equity capital raise" next year. Earlier this week the companies agreed to a $2.6 billion merger.

Tesla this week also announced an agreement to pay $2.6 billion in stock for SolarCity Corp., a leading provider of solar-power panels that's also led by Musk.

The electric-car company's losses ballooned to $1.06 a share from 48 cents in the year-earlier figure, much greater than the 52-cent loss estimate of analysts polled by Thomson Reuters.


Popular
  • PS4 Neo Reveal in September Says Multiple Sources

    PS4 Neo Reveal in September Says Multiple Sources

    At this year's E3 Microsoft officially announced the Scorpio, a 6 teraflop powerhouse version of the Xbox One. So, those have long planned to own one console, can have a look at PlayStation 4 as it comes to the market.

    Great Britain's Adam Peaty takes 100m breaststroke gold in world record time

    The swimmer broke a second world record with a time of 57.13 seconds. "It's given me a new interest and kept my brain working". South Africa's Cameron van der Burgh captured the silver, after winning 2012 Olympic gold in the event.

    First Republican congressman pledges to vote Clinton

    When Christie endorsed Trump , Whitman accused the governor of an "astonishing display of political opportunism, the Times said". Major Republican donor Meg Whitman said on Tuesday that she plans to support Hillary Clinton over Donald Trump in the election.
  • In Pakistan: Lawyers go on strike after dozens killed in attack

    The movement at one time swore fealty to Islamic State's Middle East leadership, but later switched back to the Taliban. Anwalullah Kakar, the government spokesman in southwestern Baluchistan province, says an investigation is underway.
    Sanchez, Siemian listed as co-No. 1s on Denver depth chart

    Sanchez, Siemian listed as co-No. 1s on Denver depth chart

    More important than who starts the game or who finishes the game is how the quarterbacks perform in the game. Sanchez and Siemian are listed as co-No.
    Clippers' Blake Griffin to executive produce animated comedy pilot for Fox

    Clippers' Blake Griffin to executive produce animated comedy pilot for Fox

    We've seen hints of Blake Griffin flirting with comedy but now the National Basketball Association player is actually on stage. Based on the Griffins, the traditional values of the characters will clash with their less modest surroundings in Los Angeles.
  • RBI governor Raghuram Rajan says speeches never criticised govt

    Actually, these have been simplified considerably in the recent past, but sometimes your local branch may not know it, Rajan said. Against this, the central bank retained the inflation projection of 5 per cent by March 2017 with risks tilted to the upside.
    New FDA regulations on e-cigarettes

    New FDA regulations on e-cigarettes

    Research shows e-cigarette use among high school students increased over 900-percent from 2011 to 2015. The FDA will now regulate all tobacco products from cigarettes and cigars to e-cigarettes and hookahs.
    Trump tax plan pulled from campaign website

    Trump tax plan pulled from campaign website

    Calk called Trump's vision for taxes the biggest tax revolution since changes under Republican President Ronald Reagan in 1986. It also comes after what was widely seen as his worst week as a presidential candidate for the November 8 election.
  • Russian Federation kicked out of Rio Paralympics

    The Russian Paralympic Committee will reportedly appeal against the decision to the Court of Arbitration for Sport. It was stated in McLaren's report that athlete's samples from Russian Federation were manipulated.

    Furyk shoots a 27 on front 9 during Travelers final round

    Earlier that day, he had shot 59 in the second round of the BMW Championship, an effortless round on a hard day at Conway Farms. It's almost 40 years since Al Geiberger, aka Mr. 59, became the first to shoot 59 in a PGA Tour event.
    Iran executes nuclear scientist who was convicted of spying for US

    Iran executes nuclear scientist who was convicted of spying for US

    He initially returned to Tehran to a hero's welcome, but was later arrested and tried for treason. Amiri first vanished in 2009 while on a religious pilgrimage to Muslim holy sites in Saudi Arabia.

CONNECT