Currently reading: Tesla reports losses of £220 million for second quarter of 2016

As well as the losses, sales and deliveries were lower than predicted; Gigafactory 1 is now 14% complete

Tesla reported losses of £220 million for the second quarter of 2016, continuing a negative trend that’s continued for more than three years.

The electric car maker built and delivered 14,402 cars between April and June of this year, which was 2598 below its target for the period. Sales amounted to close to £998m, which was also down on market predictions.

Despite missing delivery targets for the second quarter in a row, Tesla said it would be able meet future targets, including delivering 50,000 Model Xs (pictured above) and Model Ss before the end of 2016, because production has now been ramped up significantly.

It said evidence for this promise came with the fact that nearly half of its production for the previous quarter came in the period’s final month.

Meanwhile, sales were up by 67% on the year before. The period was also a record-breaking one for Tesla; its newly unveiled Model 3 received an unprecedented amount of orders, which insiders say amounts to nearly half a million units.

Gigafactory

Tesla 1

Tesla’s recently opened Gigafactory 1 is only 14% complete, but the car maker says it will help to significantly increase production efficiency and reduce the cost of its batteries.

All of Tesla's vehicles will have parts made in the Gigafactory; primarily the upcoming Model 3, but also the current Model S and Model X, as well as planned future models including an electric cargo van, a Model Y compact SUV and pick-up truck.

Tesla came to an agreement to purchase solar panel company Solarcity earlier this week. The deal, which is worth close to £1.96 billion, will see the two companies combine. Tesla says it will make the brand a completely 'vertical' energy company, providing customers with everything from the power source to the car itself.

Join our WhatsApp community and be the first to read about the latest news and reviews wowing the car world. Our community is the best, easiest and most direct place to tap into the minds of Autocar, and if you join you’ll also be treated to unique WhatsApp content. You can leave at any time after joining - check our full privacy policy here.

Join the debate

Comments
12
Add a comment…
bowsersheepdog 5 August 2016

Running on snake oil

The whole Tesla set-up is a scam to get government funding, which will eventually be found to have mysteriously disappeared into a small number of backpockets, for cars which will never do what they are claimed to be going to do. I wouldn't be surprised if organized crime is involved also.

Lefties dreamed up the idea of electric cars to gain control over the movement of the population, by replacing petrol engines with something which doesn't work. Musk is a dodgy shyster, taking advantage of the situation to tout schemes to attract investment, but which will never come to fruition.

Even the name, Tesla, is an anagram of steal.

Merod 11 August 2016

Hahahahaha

bowsersheepdog wrote:

The whole Tesla set-up is a scam to get government funding, which will eventually be found to have mysteriously disappeared into a small number of backpockets, for cars which will never do what they are claimed to be going to do. I wouldn't be surprised if organized crime is involved also.

Lefties dreamed up the idea of electric cars to gain control over the movement of the population, by replacing petrol engines with something which doesn't work. Musk is a dodgy shyster, taking advantage of the situation to tout schemes to attract investment, but which will never come to fruition.

Even the name, Tesla, is an anagram of steal.

....where of course the "MG" pic in your auto signature was produced by a car company who was a paragon of virtue!

bowsersheepdog 11 August 2016

Merod wrote:

Merod wrote:
bowsersheepdog wrote:

The whole Tesla set-up is a scam to get government funding, which will eventually be found to have mysteriously disappeared into a small number of backpockets, for cars which will never do what they are claimed to be going to do. I wouldn't be surprised if organized crime is involved also.

Lefties dreamed up the idea of electric cars to gain control over the movement of the population, by replacing petrol engines with something which doesn't work. Musk is a dodgy shyster, taking advantage of the situation to tout schemes to attract investment, but which will never come to fruition.

Even the name, Tesla, is an anagram of steal.

....where of course the "MG" pic in your auto signature was produced by a car company who was a paragon of virtue!

That company was wrecked by the unions, whose original purpose has been perverted by people hell bent on overthrowing the authority of democratically elected government and bringing about the ruination of the country.

mpls 5 August 2016

"They producing cars around 5

"They producing cars around 5 times the value of a typical Toyota and have become what they are today in 10 years, an eighth of the time of VW."

The first part of the statement is understandable, but the second half of that makes no sense, does VW lose every quarter for 3 years in a row.. does VW use customer deposit as working capital ? is that an acheivement to be proud of ?
At this rate Tesla dererves to be bought out at a fraction of all its investments taken, because it's unsustainable..

abkq 4 August 2016

Am surprised that Tesla's

Am surprised that Tesla's next model isn't a "Model 1" - While some people still have range anxiety doing long distances, a Model 1 city car would be a perfect fit for an EV manufacturer.