Tesla posts huge loss again as Musk tries to ease investors’ worries

27745330872_53c53d5446_o.jpg

Money continues to be lost and a government investigation is underway, but the Master Plan is working, right?

Tesla posted second-quarter losses of $293 million, up from $184 million in losses posted a year earlier. The lead up to production of Tesla’s upcoming Model 3 sedan is increasing operating expenses dramatically. Elon Musk has said he wants to start building the Model 3 by July 1, 2017. Tesla also delivered fewer vehicles this quarter than it initially anticipated. The final number was 14,402, falling short of the 17,000 expected.

During a recent conference call with investors, Musk tried to ease worries and assure backers that everything was still going smoothly despite being way off target for sales and earnings in the quarter. When talking about production problems, Musk said that Tesla “just managed to climb out of hell” in June. Musk claims that Tesla is on track to produce 500,000 cars in 2018. During the conference call Musk also said that the Model 3 is Tesla’s top priority, followed by the Model Y, a small SUV to be built on the Model 3 chassis.

Expenses for the electric car company continue to increase as the “Gigafactory’ in Nevada gets closer to being ready. However, it’s not only sales figures that Tesla has to worry about nowadays, what with the latest government probe into the company’s Autopilot system.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s