Tesla Posts Record Deliveries in Q2 2019, But Still Lost $408 Million

Tesla CEO Elon Musk in March 2019.Photo: Jae C. Hong (AP)Electric car giant Tesla had its stock plunge over 10 percent in after-hours trading after posting a $408 million loss in Q2 2019—despite shipping record numbers of cars, CNBC reported on Wednesday.The company produced about 87,000 cars in the quarter and shipped some 95,200 of…

Tesla Posts Record Deliveries in Q2 2019, But Still Lost $408 Million

Tesla CEO Elon Musk in March 2019.Photo: Jae C. Hong (AP)Electric car giant Tesla had its stock plunge over 10 percent in after-hours trading after posting a $408 million loss in Q2 2019—despite shipping record numbers of cars, CNBC reported on Wednesday.The company produced about 87,000 cars in the quarter and shipped some 95,200 of them throughout the quarter, per the Verge, and generated about $6.3 billion in revenue. The $408 million is an improvement over its $702 million loss the prior quarter, and some $117 million off the losses were slated as “restructuring charges related to layoffs and store closings,” the site wrote. Tesla also said it ended the quarter with $5 billion in cash, more than at any point in its history, and as the New York Times noted, the 95,200 shipped cars are a 50 percent increase from the prior quarter.However, the Times wrote that the showing was still under analyst expectations, resulting in the stock drop:The second-quarter loss amounted to $2.31 per share. Revenue jumped to $6.3 billion, from $4.5 billion in the first three months of the year.Both figures came in below Wall Street’s expectations. Analysts had expected a loss of $1.27 per share and revenue of $6.5 billion, according to FactSet. Tesla shares fell about 10 percent in extended trading. Before the earnings report, the stock had closed at $264.88, up 1.8 percent.As the Times noted, Tesla is spending heavily on a Model 3 plant in China and fueled the record deliveries in part by slashing prices (including a $1,000 reduction of the cheapest Model 3’s price to $38,990 last week). It is “unclear how much money, if any” Tesla makes on the chea
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