U.S. electric car maker Tesla has just presented the financial results for the second quarter of 2019, which ended on June 30. According to the data, the U.S. giant's net losses amounted to $408.3M, or $2.31 per share (a figure slightly lower than last year's $717.5M).
Adjusted losses reached $1.12 per share, a lot higher than the $0.35 expected by analysts. However, Tesla has promised investors it will regain profitability in the third quarter of the year.
Tesla's revenue increased by 59% compared to the second quarter of 2018 and reached $6.35B. The company has also revised its capital expenditure forecast for 2019: Tesla now believes it will spend about $1.5B-$2.0B instead of the $2.0B-$2.5B it had previously forecast. These funds will be invested in several projects, such as the company's gigafactory in Shanghai, the development of the Model Y and Tesla Semi as well as the installation of new charging stations in order to expand the company's current network.
In the second quarter, Tesla sold as much as 95,356 cars. During this period, the company has made 87,048 cars. During the first half of 2019, Tesla sold around 158,200 units.
In a letter sent to its investors, Elon Musk has said that the firm keep its sales forecast for 2019 of 360,000-400,000 units. By the end of 2019, the company plans to make 10,000 Model 3 units a week, a figure that currently stands at 7,000.
Tesla's quarterly losses do not surprise anyone. In fact, the company reported in October last year its first quarterly gains in 2 years.
Tesla has revolutionized the automotive industry. Not so many years ago, it was inconceivable to think we would be able to drive electric cars. However, Elon Musk founded Tesla and made it possible, and what's more, he made electric cars accessible to all buyers. Tesla's cheapest car, the Model 3, can be bought by just around $30,000 dollars. The company's profitability problems do not seem to be an obstacle to Musk's desire to bring electric cars to the masses.