Electric vehicle maker Tesla Inc. burned through $739.5 million in cash last quarter, paving the way to a company record $717.5 million net loss as it cranked out more electric cars.
Elon Musk's electric auto company had revenues of $4bn in the three months to June, rising 43% from the same period past year. Adjusted for stock-based compensation, the company lost $US3.06 per share. Analysts expected a loss of $2.92 per share on revenue of $3.92 billion.
"TSLA is accommodating Model 3 customers who are willing to pay for premium features - making the vehicle more of a luxury item with a smaller addressable market than the mass market auto TSLA had promised".
Tesla's v9.0 software update will include some playable classic Atari games as Easter eggs, CEO Elon Musk revealed on Twitter Wednesday.
Tesla also said it repeated weekly Model 3 production of 5,000 cars "multiple times". It expects to produce between 50,000 and 55,000 Model 3s this quarter.More news: ‘In My Feelings’ challenge ends with Florida teen hit by auto
Skeptics, including hedge funds that held short positions in the company, doubted whether Musk could reach his targets for profitability and Model 3 production, given his tendency to make overly optimistic projections for the company.
In the company's previous earnings call, in which he initially announced the layoffs, Musk also said the company would reduce its capital expenditures-investments going forward.
The company laid off nine percent of its workforce in the second quarter as it attempted to become profitable. And the first thing Musk did was apologize. Mr Musk then took the first two questions from two analysts he was harshest with last quarter - Sanford C Bernstein's Toni Sacconaghi and RBC Capital Markets' Joseph Spak - and offered personal apologies. "That said, significant progress has been made in the last few months, and GA3 is now expected to reach a production rate of 5,000 per week very soon". That leaves the company with $2.2 billion cash compared with $3.3 billion at the end of 2017.
Tesla's stock was up more than 10% at one point in after-hours trading.
Peter Bannon, a former semiconductor architecture engineer at Apple turned leader in Tesla's Autopilot department, spoke during Tesla's quarterly earning call about the new hardware in the company's portfolio, Autopilot v3.