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Tesla narrowed its net loss to $408 million in the second quarter, as the electric carmaker offset lower vehicle margins with cost reductions, but managed to set a record for quarterly deliveries.
Why it matters: Though an improvement over losses a year ago and last quarter, the Silicon Valley company missed analysts’ predictions of an adjusted loss of 35-cents a share — instead losing $1.12 per share — sending Tesla shares down more than 8% in after-hours trading on Wednesday.
The big picture: After a $2.4 billion capital raise, Tesla said it ended the quarter with $5 billion in cash, the biggest sum in its history. That liquidity is important as it prepares to launch Model 3 production in China later this year and Model Y production in the U.S. in 2020.
- Tesla said it is aiming to make a profit in the current quarter, but its main focus will be to increase volume, expand capacity and generate cash.
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