Tesla surprised many analysts and investors earlier this month when it said it delivered a record 95,200 cars in the second quarter, an increase of about 50 percent from the first three months of the year. The news lifted the falling stock price as well as the customers and many fans. "Wednesday afternoon, the company said the increase in sales also lifted the bottom line. Tesla said it lost $ 408 million in the second quarter, compared to a loss of $ 702 million in the first quarter when sales fell as the company struggled with logistical challenges, including to get thousands of its Model 3 sedan to Europe and China.
Why did the company lose money?
A large jump in deliveries typically means that a car manufacturer manages and coins money. But that was not the case for Tesla because it spends a lot of money. The company builds a plant in China, develops more cars and improves customer service.
Record sales in the second quarter cost: Tesla partially pumped up demand by cutting prices. The last cut was last week, as it lowered the price of the cheapest version of its Model 3 sedan by $ 1,000, to $ 38,990.
It is unclear how much money Tesla makes from the cheaper versions of Model 3. All in all, more than 80 per cent of the company's deliveries in the second quarter.
Do people still buy Model S and X?
A major problem for the company is that the demand for the more expensive and more profitable Model S luxury sedan and Model X sports utility vehicles has fallen sharply this year.
In the second quarter, total sales of Model S and X accounted for 17,650 cars. It was about 5,500 more than in the first quarter, but 10,000 fewer than it sold in the last three months of 2018.
"It is obvious that the desire for Model S and X is not so strong," said Shane Marcum, general Head of Cross-Sell Reports, which tracks new car registrations in 23 states. "Model 3 can be used for the sale of S and X."
Car analysts and car enthusiasts have also speculated that Tesla will soon be able to redesign Model S and X, which were first introduced several years ago. But the company's CEO, Elon Musk, said on Twitter that it was not the case and Tesla planned "just a series of minor ongoing changes."
What about the rest of the year and next year the year?
Tesla hopes that the demand for their electric cars will continue to grow in the second half of the year. The company has set a goal of selling more than 360,000 cars in 2019. Sales in the first six months of the year put it less than half way into it, and it will have to sell 100,000 or more cars in each of the last two quarters. to reach the goal.
The company thought it was difficult. On July 1, the federal tax credit available to Tesla's US customers will fall by half to $ 1,875. On January 1, the tax credit will disappear.
At least this year, Tesla can't rely on any new models to attract customers and increase sales. It works with Model Y, a sports vehicle that shares many parts with Model 3, but comes with up to three rows of seats, instead of the Model 3s two rows.
But that car will not go into production until late 2020. Tesla also works with a pickup and a semi truck, but they are not expected to arrive before Model Y.