Tesla, Inc. (NASDAQ: TSLA) rose on reported wider-than-expected loss for its second quarter, while sales exceeded estimates. The company expects to produce 50,000-55,000 Model 3s in the third quarter.
Tesla posted a greater-than-expected loss per share for the second quarter and revenue that just edged out Wall Street estimates. But the company's CEO lifted shares after hours with apologies for past bad behavior.
Losses were $3.06 per share vs. $2.92 per share forecast, while revenue was $4 billion vs. $3.92 billion forecast
The stock has been under pressure for some time as investors have worried about the cash the company was burning and whether it would be able to sustain its profitability.
The electric car maker's second-quarter loss was wider than analysts expected, but the company backed its prior forecast that calls for profitable third and fourth quarters.
"From an operating plant standpoint, from onwards I really want to emphasize our goal is to be profitable and cash flow positive for every quarter going forward," Musk said on the call. He added that recessions, or force majeure events could derail the plan but the goal is to be achieving positive GAAP income and cash flow "every quarter from here on out."
Tesla had $2.2 billion in cash on hand at the end of the quarter, and expects its cash reserves to grow in the second half of the year. It also now expects to spend less that $2.5 billion in capital expenditures in 2018, far below the $3.4 billion it spent in 2017.
As of Wednesday's close, shares of Tesla had lost 3% in 2018 and 7% in the 12-month period. Shares vaulted $29.35, or 9.8%, to $330.19
Tech Insider
