Tesla losses mount, even as CEO Elon Musk plans ambitious growth – California News

Tesla losses mount, even as CEO Elon Musk plans ambitious growth – California News




PALO ALTO >> Tesla CEO Elon Musk pulled back on estimates of Model 3 reservations on Wednesday, even as the company reported stronger than expected results.

The high-tech electric vehicle maker continued to lose money, although it cited growing excitement and profit margins for its vehicles.

Tesla reported a $336 million loss in the second quarter, roughly 15 percent larger than the same period last year, or $2.04 per share. Company revenues for the quarter were $2.79 billion, more than double last year’s second quarter revenues. Adjusted for one-time expenses, Tesla reported a $220 million loss, or $1.33 per share.

The company fared better than analyst predictions.

Market watchers surveyed by Bloomberg estimated a company loss of $450 million, or $2.34 per share, on revenue of $2.5 billion. Excluding certain expenses, analysts estimated losses of about $310 million, or $1.88 per share. Tesla stock jumped nearly 8 percent in after-hours trading.

The electric vehicle maker and clean energy company is building its brand beyond a luxury niche, quadrupling production and introducing new products like its lower-cost Model 3, an electric semi truck, solar roofs and residential and commercial storage.

Musk revised an earlier estimate that the company had more than a half-million Model 3 reservations. The CEO said Wednesday the company has received 518,000 total reservations, but due to cancellations, it has netted 455,000 orders.

Musk said July was one of the company’s best months, but noted the hard work to build more cars, faster.

“What we have ahead of us is an incredibly difficult production ramp,” he…

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