Here's what to expect from Tesla's earnings report

Share
Here's what to expect from Tesla's earnings report

Musk said the company has learned a great deal from the mistakes made with Model S and X production. Tesla said it plans $2 billion in capital expenses in the second half of the year, which would erode its cash cushion to about $1 billion.

Tesla accelerated beyond second-quarter expectations on Wednesday and rode investor interest in its new "affordable" Model 3 to a 7.4-percent jump in after-hours trading.

In the second quarter, Tesla increased spending on research and development by 92% to $US369.8 million. Musk said Tesla may experience some fluctuations in production rates, but "people should have zero concerns".

Tesla CEO Elon Musk remained buoyant, despite the increase in losses, saying: "July was one of our best months ever". Tesla's most anticipated Model 3 has greatly influenced the results and the waiting list for the cheaper alternative electric auto grows longer and longer. Over the past eight months the company has nearly doubled its share price from its December 2016 low of $181. Tesla's stock rose to $348 per share, despite the record loss.

But Musk shrugged off the cancellations, noting that the company has been averaging about 1,800 new Model 3 reservations per day since the first 30 cars were handed over Tesla employees on Friday. Baillie Gifford & Co. now owns 13,625,678 shares of the electric vehicle producer's stock valued at $3,792,025,000 after buying an additional 336,130 shares during the period.

Some analysts believed demand for the company's Model S and X had plateaued, and Musk has been quick to pitch the Model S as Tesla's superior, most technologically advanced auto. However, now that Tesla has begun deliveries of their new Model 3 line, some are concerned the company won't be able to meet the overwhelming demand for the electric vehicle (EV).

"I think this is inconsequential because with a small amount of effort we could easily drive the Model 3 reservation number to something much higher, but there's no point", Musk told investors.

The Model Y is expected to share a lot of components with the Model 3. It delivered just over 22,000 Model S and Model X vehicles for the quarter. Tesla CEO Elon Musk says the company was on track in many areas, including batteries, solar panels, and maintaining sales of its existing vehicles.

Share

Advertisement

Related Posts

Austin Jackson makes insane catch to rob home run at Fenway Park
Well, at least we had that catch. "Luckily, I was able to grab the fence a little bit and I flipped over". He will undergo treatment and do some conditioning, and the Giants expect Cueto to pitch again.

Senate Dems spell out conditions on bipartisan tax reform
In fact, NY had a 28 percent increase in enrollments this year, with 17 insurance carriers offering plans on the ACA exchange. Supreme Court Justice Neil Gorsuch and the approval of a small amount of funding to build a border wall - a measure the U.S.

The Big Risk Trump Is Taking by Threatening Congress' Health Insurance
That is making Congressional Republicans a target, even as control of the Senate seems all but assured after the 2018 elections. Ron Johnson, R-Wis., have been outspoken on the exemptions as well, pushing to repeal payments for members of Congress.

At this point, Tesla essentially looks like the electric vehicle market
But on its quarterly earnings call , CEO Elon Musk revealed about 63,000 people have cancelled their Model 3 pre-orders. Deliveries were down slightly from the first quarter, but Tesla blamed a shortfall in batteries for the slower pace.

BCC comments on Bank of England's 'Super Thursday'
But all members agreed that any increases in Bank Rate would need to be at a "gradual pace" and "limited". The reaction in financial markets, though, suggests investors are doubtful the BOE will follow through.

AMD's RX Vega PC Gaming Graphics Lineup Is Late But Mighty
Although graphics cards have never been a hot topic of discussion (except maybe among niche groups), this has changed recently. AMD is hoping to capture the wallets of enthusiast gamers with Vega , and with the low starting price, it may succeed.

Venezuela's National Constituent Assembly to meet on Friday
The ANC will replace the opposition-led National Assembly, and critics fear it will erode democracy and give rise to dictatorship. Lopez (46) was transferred to house arrest in July after serving three years and five months in prison as part of a 14-year term.

Andersson says he won't help override veto of school funding bill
Asked about that Tuesday, Madigan spokesman Steve Brown said he doesn't "know that the analysis has been concluded on that". Pritzker accused Rauner of being "blinded by his crusade against Chicago's children and families" while Northwest Side Ald.

Bitcoin is set to split in two, here's what that means
This would solve the problem of jam-packed blocks, and consequently speed up transactions times while reducing associated fees. According to data from BTCForkMonitor.info, the split started at around 12:37 UTC, when the blockchain reached block 478,558.

Farooq Abdullah praise security forces after LeT commander Abu Dujana's killing
The Indian Army in July released a list of 12 most-wanted terrorists operating in the Kashmir Valley and Dujana was among them. Meanwhile, intense clashes between protesters and government forces erupted near and around the encounter site, sources said.

© 2015 Chester Weekly. All Rights reserved.