Tesla reports wider Q2 deficit than expected but predicts Model 3 boost

Tesla reports wider Q2 deficit than expected but predicts Model 3 boost

"In July 2018, Model 3 not only had the #1 market-share position in its segment in the USA, it outsold all other mid-sized premium sedans combined, accounting for 52% of the segment overall", Tesla's earnings press release stated.

The electric auto company said it lost more than $717 million in the second quarter. That put it on track to retake the title of most valuable USA automaker from General Motors Co (GM.N).

"We aim to increase production to 10,000 Model 3s per week as fast as we can", the company said. The company said it expects to produce 50,000 to 55,000 Model 3 vehicles in the third quarter - that would represent a sharp increase from the previous quarter. Analysts have questioned whether the 5,000 rate would be sustainable. Going forward, Musk said he expected that rate to become the average for the third quarter, compared with a weekly average of about 2,000 cars for last year's corresponding quarter.

The second quarter was significant for Tesla in a few key ways. Tesla said in July there were about 420,000 reservations for the Model 3, and did not update that number on Wednesday. "I think there's no excuse for bad manners". That angered some deposit-holders, and analysts questioned whether more would drop out because of delays making the cheaper $35,000 version of the sedan.

FILE PHOTO: A man walks near a logo of Tesla outside its China headquarters at China Central Mall in Beijing, China July 11, 2018. Tesla went through $739.6 million in cash between April and June, less than the $900 million Wall Street analysts had forecast.

Free cash flow was negative $US739 million ($998 million) for the three months ended in June, Musk wrote in a letter to shareholders on Wednesday.

Hamilton nabs pole position for Hungarian F1 GP amid heavy rain
Lap 10 - Hamilton remains in the lead ahead of Mercedes teammate Bottas and the two Ferraris, Vettel and Raikkonen. Fair enough, I think a racing incident.

Tesla has released its second-quarter earnings for 2018, revealing a US$717.5 million ($969 million) loss, but there's a bit to suggest things are looking up in Silicon Valley.

Bannon said that when he joined Tesla, employees considered many options, including Nvidia graphics cards, and said they talked with people at Arm, whose technology is used in chips from Qualcomm (QCOM) and other companies.

Tesla projected 2018 capital spending of slightly less than $2.5 billion, compared to $3.4 billion a year ago.

"By all available evidence, the company has had a hard year", Einhorn wrote about the automaker in his letter, which was published by the finance blog Zero Hedge.

Several analysts had predicted a widening loss for Tesla.

Total revenue rose to US$4 billion from US$2.79 billion. Before today's earnings report, the shares were down less than 5 percent on the year. Tesla's stock has fallen more than 18 percent since its June peak.

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