Tesla suffered a loss of $408 million during its
latest quarter as the company continues to
struggle to prove it can make money while
producing electric cars at prices that a mass
market can afford.
The setback announced Wednesday had already
been telegraphed by Tesla CEO Elon Musk, but it
still underscored an ongoing challenge that helps
explains why the company’s shares have plunged
by more than 20% so far this year while the
Standard & Poor’s 500 index has surged by 20%.
On the upside, Tesla’s second-quarter revenue
climbed 47% from the same time last year to
$5.2 billion. The company also generated $
million in cash during the quarter, helping to
fatten its bank account to $5 billion through
June. That’s money Tesla is going to need to
repay its massive debt and other bills, unless it
can’t stop hemorrhaging red ink.
In a sign that investors are still worried about
Tesla’s future prospects, the company’s stock
dropped by nearly 10% to $239 in extended
trading after the results came out.
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