Over 60000 orders of Tesla Model 3 cancelled: Musk

Since the start of the year, Tesla shares have gained 52 percent, as investors anticipate the launch of its first vehicle for a more mainstream consumer- Model 3. The Tesla CEO made the announcement during Wednesday’s second quarter 2017 earnings call, where he revealed that both himself and Jeffrey B. Straubel, the company’s chief technology officer, have installed solar roof tiles on their houses.

The automaker reported that orders for the Model S and Model X are rising, even as the mass-market Model 3 now averages more than 1,800 net reservations per day (including cancelations). Here’s a close look at the quarter. The company noted that global deliveries in quarter 2 grew by 53% from a year ago, to just over 10,000 Model X and just over 12,000 Model S. It refused to comment on California registration numbers. The firm had revenue of $2.79 billion during the quarter, compared to analysts’ expectations of $2.50 billion. “To underestimate the cash burn over the next six months will be a mistake”.

Tesla produced 25,708 vehicles in the second quarter, up 40% from the same period a year earlier.

The company worked to calm analysts’ concerns that it might struggle with production of its Model 3, restating that it is on track to hit previously announced targets.

Leading up to the launch of the Model 3, it was highly unlikely that Tesla would post a profit. The shares were sold at an average price of $367.68, for a total transaction of $1,724,419.20.

The Model 3. Image source: Tesla.

In its earnings letter, Tesla referred to the rollout as “a huge milestone” and said it coincided with increased orders for the Model S and Model X. And demand for the Model S increased after the Model 3 launch as well.

The market appeared to give Musk a pass on his correcting the record on Model 3 reservations and production of the “Model Y”, the compact SUV that Tesla aims to offer in a couple of years.

Tesla, Inc. (NASDAQ:TSLA) is worth US$52.4 Billion and has recently fallen -1.21% to US$319.57.

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“This is maybe the best I’ve ever felt about Tesla, to be frank”, Musk added. The biggest holder now is Mr. Jeffrey B. Straubel who owns 326,301 shares (0.20% of those outstanding), whilst Mr. Kimbal Musk holds 163,664 (0.10% of shares outstanding) and Mr. Douglas John Field holds 19,308 (0.01% of shares outstanding). The Motley Fool has a disclosure policy.