Tesla Shares Up Despite Record Losses
CBJ — The magic of Elon Musk continues to impress investors, who still believe the tech innovator is on the path to something big despite Tesla posted record losses in the last quarter.
Tesla’s stock price soared despite reporting a record $717.5m loss for the second quarter of 2018. Musk, who is Tesla’s CEO, appeared to restore investor confidence with an apologetic and restrained performance on an analyst call.
Tesla shares rose more than 9% in after hours trading.
“We believe we can be sustainably profitable from Q3 onwards,” Musk said on a conference call. He also said production will ramp up significantly.
Tesla produced 53,339 vehicles in the quarter and delivered 40,768.
Tesla was producing 5,000 Model 3 cars per week by the end of June and expects to increase that quota moving forward.
Tesla ended the quarter with $2.2bn in cash and cash equivalents.