The net loss more than doubled from the same quarter a year ago.
Tesla said it continued to produce 5,000 Model 3 cars per week in July (a figure it hopes to raise to 6,000 this month), along with 2,000 of its Model S and X vehicles. Tesla said its gross margin on Model 3 cars turned "slightly positive" during the quarter, meaning the company was no longer losing money on every Model 3 it shipped. "That said, significant progress has been made in the last few months, and GA3 is now expected to reach a production rate of 5,000 per week very soon".
CEO Elon Musk said Wednesday that the company's custom-built chip for handling autonomous driving is almost ready.
Excluding items, Tesla reported a loss of US$3.06 per share. And the first thing Musk did was apologize.
Tesla will release earnings after the market closes Wednesday. Tesla said in July there were about 420,000 reservations for the Model 3, and did not update that number on Wednesday. Not only does the company intend on upping production of the entry-level Model 3, it also intends on unveiling a small crossover dubbed the Model Y early next year.
Tesla ended June with about US$2.2 billion in cash on its balance sheet, the least it's carried since the first quarter of 2016. Margins went from nearly flat to 15 percent, still a ways off the 25 percent mark that CEO Elon Musk has called for.
"We aim to increase production to 10,000 Model 3s per week as fast as we can", the automaker wrote in its quarterly letter to investors. We assume that would hold true for all games, because we're fairly certain the motoring public isn't ready for an autonomous auto that lets drivers have a go at Pac-Man while rolling down the highway at speed. Elon is still seen as the key to the company's long-term success by many investors and restored faith in the found of Tesla is vital to its performance on Wall Street, something Mr. Musk is probably all too aware of.
David Einhorn's $5.5 billion Greenlight Capital hedge fund lost 18.3% in the first half of 2018 while the benchmark S&P 500 was positive. The stock has slumped 19 per cent since a 2018 high of $370.73 in June. Additionally, it seems Tesla is keen to get unique game content into its cars, as Musk also tweeted job opportunities for game developers.