Jul 24, 2019

Tesla misses earnings expectations, loses $408M in Q2

Photo: picture alliance / Contributor/Getty Images

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.

Go deeper: Tesla is mirroring Detroit's worst habits

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Tesla expects windfall from self-driving tech rollout

Illustration: Sarah Grillo/Axios

Elon Musk predicts full self-driving features — which Tesla is now selling as a $6,000 option on its electric vehicles but aren't yet available — will transform the company's bottom line.

The big picture: Right now, Tesla's Autopilot has only limited self-driving capabilities on highways. When Tesla can offer a fully self-driving car, Musk said this week in Tesla's Q2 earnings call, profit margins will soar to as much as 30% (from today's 19%). Revenue that had been deferred will be recognized, but more importantly, Musk expects orders for the full self-driving package to increase significantly.

Go deeperArrowJul 26, 2019

Tesla's hefty electric vehicle market weight

Reproduced from Cox Automotive; Note: Does not include plug-in hybrids; Chart: Axios Visuals

For all the justified worries about Tesla's finances, they remain in a pretty good competitive spot in the electric vehicle market — for now.

The big picture: The chart above, via this new Cox Automotive report on the U.S. EV market, shows how the Silicon Valley company dominates the market for pure electric vehicle sales.

Go deeperArrowAug 20, 2019

Tesla launches program for customers to rent solar panels

Tesla launched a new program on Sunday to enable customers to rent solar panel systems.

Why it matters: This is Tesla's latest effort to bolster its struggling solar business lines, and it's part of a wider relaunch of Tesla's solar business that CEO Elon Musk announced via Twitter.

Go deeperArrowAug 19, 2019