Tesla Q2 2018 Revenue Hits $4B But Its Still Losing Money
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.
SEE ALSO: Tesla Model 3 Performance Will Get a ‘Track Mode’
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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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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...and the wait time for the base version of the Model 3 is still almost 3 years away from the initial deposit date for those who haven't received a refund or those who won't still demand their deposit be refunded while becoming disenchanted with an almost 7 year old design.. .upon delivery. It IS a very generic small sedan design...and looking more dated each year. So is reducing the level of loss sorta like kissing your sister or receiving a special participation trophy? I'm so weary of the media hype and excuses made for this outfit...