Tesla’s loss triples in 2Q as it lowers delivery forecast

Model X and Model 3Tesla said in its second-quarter letter to shareholders that its upcoming fully electric SUV, Model X, “remains on track for start of deliveries in late Q3″. Therefore, “in a choice between a great product or hitting quarterly numbers, we will take the former”. It appears that the electric auto manufacturer is not confident enough to deliver as much as 55,000 vehicles, which matters most for investors.

The company said it lost $184.2 million in the second quarter, compared with a loss of $61.9 million in the year-ago period. Musk said Tesla may miss its previous prediction of delivering 55,000 cars this year, suggesting that the final figure may be around 5,000 units lower. Since the Model X is being produced on the same assembly line as the current Model S, any issues would slow down overall vehicle production for the company. Part of the delay was because Tesla could not use as numerous same parts for both the X and the S, Musk said. Of course, the company has been making significant capital expenditures in preparation for the Model X, with the bill for the second quarter coming in at $405 million.

Tesla has already released a software patch to fix the vulnerability. It reported $1.20 billion revenue on a non GAAP basis and loss of $0.48 cents per share opposed to $ 1.19 billion revenue and $0.60 cents per share loss predicted by the experts. In a November 2013 blog, Musk opined that nothing has changed between Tesla’s foundation a decade earlier and now in terms of its mission to deliver affordable and quality electric cars to the market at the earliest.

The billionaire – who made his first fortune co-founding online transaction company Paypal – added that the Model X would be launched later this quarter, which ends on September 30.

Tesla Motors Inc (NASDAQ:TSLA) is serious about producing a mass targeted $35,000 vehicle in two years time. As such, it will feature similar front and rear fascias to the Model S while also including a higher roof, larger wheels and tyres and additional ground clearance. They also said Tesla management expects to be cash flow positive in the first quarter of next year.