Tesla shares ended higher Wednesday, as the electric car maker reported a 47% jump in revenues. The US car manufacturer also reported a surge in the production of its Model 3 sedan as it strives to fulfil demand for its flagship, mass market vehicle.
Tesla shares ended the US Wednesday trading session 0.91% higher at $300.84, in anticipation of upbeat results when they were published after the closing bell. The stock then climbed by over 9% in after-hours trading once the results were released.
Tesla Q2 earnings
Elements of Tesla’s second quarter performance come in strong. It achieved total revenues of $3.36 billion, up from $2.29 billion the same period a year earlier. And, it also reported cash reserves of $2.2 billion – impressive considering its ongoing cash burn rate to get production up-to-speed.
In addition to that, CEO Elon Musk’s electric car company churned out a total of 53,339 vehicles in Q2. That was made up of:
- 22,319 Model S and Model X vehicles.
- 18,449 Model 3 vehicles.
That came as the car maker finally produced 5,000 Model 3’s per week “multiple times” during July. That’s a number the electric vehicle manufacturer plans to ramp up to 6,000 per week. That should help it complete between 50,000 and 55,000 model 3’s in the third quarter.
“It’s fair to say that no production ramp of any other product has been as closely watched and debated as that of Model 3,” Tesla said in its Q2 earnings report.
“We are proud of our team for producing roughly 7,000 Model 3, Model S and Model X vehicles during the last week of June. We also want to thank all of our reservation holders who have waited patiently and who have been supportive of our mission,” the car maker added.
Record profit loss
However, while Tesla was able to publish some positive details in its earnings release, it still failed to make a profit. Indeed, it Q2 profit loss of $717 million, the biggest loss on record and more than double the loss recorded a year earlier.
In addition, reports suggest that while the Model 3 has been branded as the ‘affordable’ option from the electric car maker, it has yet to sell one of the vehicles at the base price of $35,000.