Demand doubles Tesla revenue but company's losses continue to grow
Heavy demand for the Model 3 is predicted to send revenues surging further
Electric car maker’s fast-selling Model 3 has surged income – but it can’t offset the cost of ongoing investment
Tesla has more than doubled revenue in the second quarter (Q2) of 2017 thanks to significant increases in customer deliveries.
The American brand recorded total revenue of almost $2.8 billion (£2.12bn) between March 30 and June 30, more than $1.5bn (£1.13bn) on top of what it achieved in the same period of 2016.
Tesla attributed much of its revenue growth to a surge in customer vehicle deliveries, which have just grown to also include the heavily in-demand Model 3. Deliveries grew by 53% compared to Q2 of 2016 – something Tesla said was unique in an otherwise “flat luxury vehicle market”, with 22,026 Model S and Model X deliveries in Q2 of 2017 growing the brand’s year-to-date deliveries to 47,077.
Tesla’s automotive operations contributed 93% to its revenue this Q2.
Ongoing investment into its battery-producing Gigafactory in Nevada, as well as research and development for future models, has led to it accruing losses of $336 million (£254m) in the three-month period, up from $293m (£221m) in 2016.
However, the brand’s overall progress has resulted in an 8% increase in its share prices.
Tesla expects demand for its Model S and Model X to grow through the second half of 2017. It will ramp up production of its Model 3 to 20,000 units per month from December.
Source: Autocar Online