After market close today, Tesla released its financial results and shareholders letter for the second quarter 2017. Wall Street was expecting revenue of about $2.5 billion for the quarter and a loss of about $1.94 per share.
The company released the official results today delivered higher on revenue of ~$2.8 billion and missed on earnings with a loss of $2.04 per share (GAAP).
Despite the miss on a GAAP basis during the last quarter results, Tesla delivered higher on non-GAAP (loss of $1.33 per share) and gave several insights into the second half the year that the market is liking – stock price is up 4% aftermarket.
Tesla said that it expects to start making positive gross margins on Model 3 starting in Q4 2017 and it guides 25% gross margin in 2018
The company says that they are also seeing more Model S orders since the Model 3 event last week and a steady net gain of Model 3 reservations.
They spent almost $1 billion last quarter to support expansions for Model 3 and they are now down to a $3 billion cash position.
Here we will be posting our follow-up posts about the earnings to expand on the most important points (refresh the page to see the most recent posts):
- Tesla gives update on Model 3 following launch: ~1,800 reservations per day, production moving forward in Fremont & Gigafactory
- Tesla starts solar roof installations at homes of employees
- Tesla Model Y is coming to market sooner using Model 3 architecture, says Elon Musk
Here’s the shareholder letter in full: