Following the announcement of its second-quarter earnings report, Tesla’s stock plunged as much as 10% in after-hours trading. The electric car maker posted a larger-than-expected loss with Q2 earnings falling far short of Wall Street’s expectations while saying it is still targeting a return to profitability in the third quarter (via Business Insider).
Below is what Tesla reported versus what the analysts expected:
- Earnings: -$1.12 per share versus -$0.31 expected
- Revenue: $6.35 billion versus $6.45 billion expected
“This quarter, we are simplifying our approach to guidance. We are most focused on expanding our manufacturing footprint in new regions, launching new products and continuing to improve the customer experience, while generating and using cash sustainably,” the company said in a letter to shareholders.
“We expect positive quarterly free cash flow, with possible temporary exceptions, particularly around the launch and ramp of new products,” it said.
At the same time, the company reaffirmed full-year delivery guidance, saying it still expects to sell 360,000 to 400,000 vehicles this year. “The Model 3 average selling price (ASP) was stable at approximately $50,000,” the company said, while costs continue to decline.
Tesla also highlighted that it ended the period with $5 billion in cash, “the highest level in Tesla’s history.”