Tesla Stock News: Company Misses Targets, But Production Ramps Up
If you are a Tesla investor, the company has pertinent updates for you: one good, one bad.Advertisement
According to Tesla, second quarter of this year has been “certainly busy.” For a good number of months, they worked on completing the design phase of the new Model 3 for its scheduled delivery next year.
Tesla also dedicated itself to ensuring a significant increase in its production rate. This is the good news for you, an increase in quarterly production by as much as 18 percent when compared to the first quarter.
Meanwhile, Tesla said it had a 43 percent increase in output compared to the second quarter of last year. They are now able to make as much as 2,000 vehicles every week. Because of this, Tesla said that the company will be able to support as much as 50,000 deliveries during the second half of 2016.
According to a recent shareholder letter published by Tesla, there is a number of Model 3 production equipment “already on the line” like paint centers and stamping. Later this year, the company plans to start construction on the body and general assembly centers for their cheapest car yet. With regards to its massive Gigafactory, Tesla said that progress in the site is on track to support the volume production of Model 3 during late 2017.
On the other hand, Tesla is reporting a second quarter loss of $150 million or $1.06 per share. This is quite worrisome for analysts who had only anticipated a loss of 52 cents per share from Tesla, according to a report from CNBC. What also concerns many is Tesla’s current spending habits.
It is no secret that Tesla has been continuously spending for its Gigafactory in Nevada. Aside from this, though, it recently announced that it is purchasing Solar City in an all-stock transaction that comes with an equity value of $2.6 billion. The expenses doesn’t stop there. Tesla also revealed that it will be investing around $2.25 billion for capital expenditures support Model 3’s accelerated production plan.
Today, Tesla’s stock is down slightly by 0.621 percent to $225.79.
Also read: Tesla Stock: Wall Street Dumping Elon Musk?