The electric car company said Wednesday that it lost $ 702 million in the last quarter.
Tesla shares fell slightly after the release of earnings, but rose again later.
CEO Elon Musk said during a conference call with investors that the last quarter might have happened was tough, but Tesla looks bright. "The demand for all three electric vehicle models from Tesla is great," he said.
"We also have many markets [abroad] that we have not asked for yet, especially the Model 3," Musk said. [1
Tesla had made profits in the previous two quarters in a row. So Tesla in the last quarter, a profit of $ 139 million, with sales of $ 7.2 billion.
There were a few things behind the descent. First, the US government tax credit for Tesla was cut by half at the start of the year. Secondly, Tesla encountered "many challenges" that piled up the delivery of its vehicles abroad.
Tesla expects delivery numbers to increase sharply in the next quarter after these issues have been resolved.
This is an evolving story. Check for updates.