Tesla rolled out more four-wheeled vehicles in the first half of the year than the company did in any other time since its inception but still came out almost half a billion poorer.
Ironically, that is actually an improvement compared to the whopping $702 million loss Tesla reported recently all because its much-hyped Model 3 was not enough to attract buyers and pull the electric car-maker out of the pit.
Shares of Tesla Inc. (NASDAQ: TSLA) were down 11% during extended sessions in New York on Wednesday after the company posted Q2 results far below analysts' predictions, and despite its peak sales of late.
Losses, resignations
According to a new filing with the Securities and Exchange Commission, TSLA shed $408 million, or $2.31 per share in the second quarter, compared with a profit loss of $718 million, or $4.22 per share, in the previous period.
The Silicon Valley carmaker also announced that long-time chief technology officer JB Straubel is resigning after 15 years as CTO. In a telephone conversation with analysts on Wednesday, chief executive officer Elon Musk said: "I'd like to thank JB for his fundamental role in creating and enabling Tesla... If we hadn't had lunch in 2003, Tesla wouldn't exist, basically."
It was the second time Tesla shareholders heard major personnel news this year regarding post-results conference call; in January last year, during a Q4 call, the company announced long-time chief financial officer Deepak Ahuja was quitting his job. Garrett Nelson, an analyst with CFRA, said: "The results will cause investors to step back and question the company's path to profitability."
Stepping up
Notably, the record quarter did help Tesla earn $6.3 billion in sales, and the $117 million it lost was a result of restructuring charges and other operating costs related to store shutdowns and workforce cuts. It was the "highest level in Tesla's history," courtesy of its $2.7 billion capital infusion in May. "We believe our business has grown to the point of being self-funding," the company said.
Tesla is firm on its target to return to Generally Accepted Accounting Principles (GAAP) profitability in the third quarter and following quarters, "although continuous volume growth, capacity expansion, and cash generation will remain the main focus," the company said.
At the call, Musk reiterated the company's goal of selling 360,000 to 400,000 cars this year and added they will likely break even in the third quarter and regain profitability in the following months.
