Tesla, Inc. | $TSLA Stock | Shares Rise Despite Q2 Earnings Miss

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Tesla, Inc. (NASDAQ: TSLA)


Tesla announced its second-quarter financial results after the closing bell on Wednesday. The company posted a wider loss than Wall Street had expected, but managed to surpass top line predictions.

Its stock gained $26.66, or 8.86% to trade at $327.50 in after-hours trading, having closed the regular session at 300.84.

The stock has been sinking in recent weeks due to increasing concerns over the future of the electric-car maker.

Tesla said it will report a profit later this year, after months of cutting costs, increasing production, and improving margins.

TSLA Earnings & Outlook

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Tesla posted a net loss of $718 million, or $4.22 per share for the quarter. In the same period a year ago, the company had a net loss of $336 million, or $2.04 per share.

On an adjusted basis, the company posted a net loss of $520 million, or $3.06 per share in the quarter, compared with $220 million, or $1.33 per share in the second of the previous year.

Total revenues jumped totaled to $4 billion, up from $2.77 billion in 2017. Analysts had expected adjusted earnings of $2.92 per share on revenues of $3.92 billion, according to figures compiled by Thompson Reuters.

Tesla shipped a total of 40,768 cars during the June quarter, including 18,449 Model 3 sedans, and 22,319 Model X and Model S vehicles.

The company said it hopes to produce 6,000 Model 3s every week by the end of August. It also maintained its target of producing 100,000 Model X and Model S vehicles before the year comes to a close.

Tesla Executive Comments

The company issued the following comments in its earnings letter to shareholders: “During the month of July, we have repeated weekly production of approximately 5,000 Model 3 cars multiple times while also producing 2,000 Model S and X per week. Having achieved our 5,000 per week milestone, we will now continue to increase that further, with our aim being to produce 6,000 Model 3 vehicles per week by late August.”

“We then expect to increase production over the next few quarters beyond 6,000 per week, while keeping additional capex limited. We believe that increasing capacity by improving utilization of our existing lines and making selective improvements to address bottlenecks rather than creating entirely new duplicated lines will be the most capital efficient approach.”

Tesla, Inc. Company Profile

Tesla is a US electric-car maker founded in 2003 and based in Palo Alto, California. The company engages in the design, development, manufacture, and sale of electric cars, and storage systems and energy generation. It operates through two segments: Energy Generation and Storage, and Automotive.

The Energy Generation and Storage segment offers energy-storage products like rechargeable Li-ion battery systems for residential and commercial use, and utility grids. This segment also engages in the design, manufacture, maintenance, installation, sale and lease of solar energy systems to commercial and residential clients.

Its Automotive segment, engages in the manufacture of sport utility automobiles and sedans. This segment also produces electric vehicle powertrain systems as well as components that it supplies to other car makers.

The competitors of Tesla include Ford, BMW, Fiat. Audi, Lexus, Sunrun Inc., Mercedes, General Motors, Mitsubishi, Trinity Solar, Toyota, Daimler, AES Energy Storage, Honda, LG, Chem, Sungevity, Inc., Samsung, and Vivint Solar Inc. –Reuters