Tesla Reports Loss of $717 Million In Second Quarter
Tesla reported its largest quarterly loss in its history on Wednesday and burned through $430 million in cash over three months. But investors didn't freak out. Wall Street was expecting worse.
The electric car company said it lost more than $717.5 million in the second quarter. But its cash burn rate was less than investors expected, and the company had $2.2 billion in cash at the end of the quarter, reports CNN.
Tesla's stock was up more than 10 percent at one point in after-hours trading.
The business world is looking so closely at Tesla's cash levels because Tesla worked mightily to reach its long-sought milestone of making 5,000 Model 3s in a week. With low cash reserves, investors have worried that Tesla would need to borrow more money to keep the company afloat.
The electric car company said it lost more than $717.5 million in the second quarter. But it ended up with $2.2 billion in cash at the end of June. That meant Tesla burned through $430 million worth of its cash stockpile last quarter as it finally hit production targets for the Model 3 sedan, which is much less than many expected.
The company said it maintained its targeted level of production, making 5,000 Model 3s in a week multiple times in July. Tesla also said it wants to churn out 10,000 Model 3s per week "as fast as we can." It expects to produce between 50,000 and 55,000 Model 3s this quarter.
CEO Elon Musk made the bold promise earlier this year that Tesla would post its first quarterly profit in years this fall, Tesla doubled down on that promise again in a letter to investors Wednesday.