Tesla released its Q2 2018 earnings report, posting revenue of $4 billion with a loss of $3.06 per share.
It’s a noticeable difference compared to a year ago, when the American electric automaker posted $2.79 billion in revenue and a loss of $1.33 per share. Despite generating more revenue, Tesla still hasn’t turned the corner to becoming profitable.
Automotive gross margin increased to 20.6 percent on GAAP basis, or 21.0 percent on non-GAAP basis. With Model 3 production finally hitting its stride, Tesla said gross margin on the entry-level model turned “slightly positive” in Q2, and expects it to be roughly 15 percent in Q3. That’s based on the expectation of producing 50,000 to 55,000 Model 3 units next quarter, with deliveries exceeding that number.
At the end of Q2, Tesla had $2.2 billion in cash and cash equivalents and expects that to grow in the next two quarters.
During the last week of June, the automaker managed to produce roughly 7,000 vehicles. If it’s able to sustain that volume for an entire year, it would allow Tesla to become sustainably profitable for the first time in its history.
A total of 53,339 Tesla vehicles were produced last quarter with 22,319 Model S and Model X vehicles delivered. The second quarter saw 18,449 Model 3 units delivered for a total of 40,768 deliveries.
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