Tesla burns $739.5 million in cash on way to record 2Q loss

Tesla burns $739.5 million in cash on way to record 2Q loss

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.

But Musk proved far more subdued during Wednesday's call, apologizing to analysts he had clashed with during the last call for being "impolite". He told analysts their questions were boring and refused to answer them, and he spent a significant amount of time fielding questions from a YouTuber. "Hope you accept my apologies".

During the earnings call, Musk said that if the company maintains its production rate of 7,000 cars per week of Models 3, S, and X, it can be profitable.

Musk attributed his intemperate remarks this spring to the long work weeks at Tesla and a lack of sleep, while adding that "there's still no excuse for it". The sedan that was central to the company's mission since its founding in 2003 - to bring electric vehicles to the masses - has picked up the pace in recent months, with the carmaker expecting to build as many as 55,000 units this quarter.

Tesla projected 2018 capital spending of slightly less than $2.5 billion, compared to $3.4 billion a year ago.

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But the company has a track record of missing its goals, and there remain big questions around Tesla's ability to scale production and compete with electric cars from other auto manufacturers.

Tesla expects to product 50,000 Model 3s in the third quarter.

"We believe we can be sustainably profitable from Q3 onwards".

Just as important, Tesla started to see real improvement with Model 3 margins.

Bloomberg News reported earlier Wednesday that the company would look to China to at least partially fund the US$5 billion cost, citing a person familiar with the plans, who asked not to be identified as the matter is private. Tesla said its capital expenses would be slightly below $2.5 billion in 2018, less than last year's $3.4 billion.

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Revenue jumped 44% to $4 billion, beating analysts' forecast of $3.92 billion.

Net loss attributable to common shareholders for the April-June quarter amounted to $717.5 million, or $4.22 per share, which was more than some analysts expected. On an adjusted basis, Tesla lost $3.06 per share, missing the consensus estimate of $2.92. Investors on Wall Street, meanwhile, were anticipating revenue to fall somewhere in the $3.791 billion range and a loss of $2.90 per share.

Tesla's website describes upcoming features - including the ability for a vehicle to change lanes without driver input, move from one freeway to another, and exit a freeway near the driver's destination - that are not available in Autopilot's current iteration.

During the second quarter, Tesla laid off 9 percent of its workforce as it worked toward Musk's promise of making money.

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