The electric car giant Tesla recorded one Stock plummeting over 10 percent trading hours after a $ 408 million loss in the second quarter of 2019, despite record car delivery figures, CNBC reported Wednesday.
The company produced about 87,000 cars in the quarter and delivered about 95,200 cars per quarter and generated sales of about 6.3 billion US dollars. The $ 408 million represents an improvement from the loss of $ 702 million in the previous quarter, and approximately $ 117 million was reported as "restructuring charges related to redundancies and business closures." Tesla also said it ended the quarter in cash at $ 5 billion, more than at any point in its history, and as the New York Times noted, the 95,200 units delivered are a 50 percent increase over the previous quarter.
Times wrote that earnings were still below analyst expectations, leading to a decline in the stock:
Second-quarter loss was $ 2.31 per share. Sales increased from $ 4.5 billion in the first three months of the year to $ 6.3 billion.
Both numbers were below Wall Street expectations. Analysts had expected a loss of $ 1.27 per share and sales of $ 6.5 billion, according to FactSet. Tesla shares fell by around 10 percent in extended trading. Before the earnings report, the stock closed at $ 264.88, an increase of 1.8 percent.
As the Times noted, Tesla spends a lot of money on a Model 3 plant in China and has fueled some of the record shipments with price reductions (including a $ 1,000 reduction) of the cheapest Model 3 price to $ 38,990 last week). It is "unclear how much money Tesla makes with the cheaper versions of the Model 3," and the entire line accounts for about 80 percent of deliveries, the paper said. Another problem is that sales of its more expensive cars, the premium model S and the SUV model X, are declining as customers take the model 3 into their own hands.
"It's obvious that the appetite for Model S and X is not as strong," said Shane Marcum, general manager of cross-sell reports to The Times. "The Model 3 cannibalizes the sales of the S and X."
According to the Wall Street Journal, the record number of shipments was indeed at Tesla, with revenues "more than 10% below the previous record recorded in the fourth quarter of last year."
Tesla has recently released the models S and X have upgraded their range by 10 percent, faster charging at the charging stations and a new air suspension system, but CEO Elon Musk has rejected rumors that Tesla is planning to introduce completely new models of cars.
"It may There is a fake expectation in the marketplace that there is a major overhaul for S and X, which then, you know, could make people hesitate to buy, if they think there is something radical. A redesign comes, which is why I'm public emphasized that this is not the case, "Musk told reporters on Wednesday on a win call." Today's S and X are radically better than we are Production began, in particular the model S. Like, a model S of 2013 or 2012, compared to today's model S – it is day and night. "
Musk added that he hoped that improvements to Tesla's" complete "Self-propelled" autopilot function, which can be built into the company's vehicles via a simple update and costs several thousand dollars, would encourage more customers to spend more, Verge wrote.
Despite improvements, Tesla, with just over 158,000 units delivered, remains less than half as high as the Times said in 2019, when 360,000 to 400,000 were delivered, and the ongoing phasing out of a state tax credit for electric vehicles (down from $ 3,750 to $ 1,875 The year July 1 and its total disappearance at the end of the year could weigh on demand, with the upcoming Y-SUV coming into production at the end of next year, followed by pick-up / semi-trucks, as Ars Technica noted Achieving the start date for Model Y at a time when Tesla has attempted to reduce it requires a significant increase in capital expenditures, Tesla estimated that it will spend $ 1.5-2 billion on investment in 2019, a reduction from his previous predictions.
This puts Musk in a hard fight to reach Musk's goal, the Gewi As the Times announced in the context of the Earnings Call, Tesla's longtime technical director, JB Straubel, will retire from this position in the following quarter, but remains a "senior advisor" to the firm, such as Verge reported separately. Straubel said during the call that he "does not disappear" and that his decision was not the result of "agree, you know, lack of confidence in the company or team or something similar."