Global electric car manufacturing giant Tesla reported a further disappointing result further pushing its drive towards profitability to an unknown date.
Total revenue for the half-year was $10.8 billion compared $7.4 billion within the same period last year.
Despite a 60% increase in annual revenue and record delivery rising as high as 95,356 vehicles and record production of 87,048 vehicles, the Elon Musk-backed company recorded a GAAP operating loss of $167 million, GAAP net loss of $408 million as well as $117 million of restructuring and other charges.
Another negative update is that Telsa’s chief technology officer, JB Straubel is leaving the company to become an advisor to Tesla.
In his statement, JB Straubel said: “I’m not disappearing, and I just wanted to make sure that people understand that this was not some, you know, lack of confidence in the company, or the team, or anything like that,” Straubel said on the call.
“I’d like to thank JB for his fundamental role in creating and enabling Tesla,” CEO Elon Musk said on a call with analysts Wednesday evening. “If we hadn’t had lunch in 2003, Tesla wouldn’t wouldn’t exist, basically,” he said.
To defend its disappointing result, Tesla said in its statement to its shareholders that:
“We most focused on expanding our manufacturing footprint in new regions, launching new products and continuing to improve the customer experience, while generating and using cash sustainably. Local production and improved utilization of existing factories is essential to be cost competitive in each region.
“We remain on track to launch local production of the Model 3 in China by the end of the year and Model Y in Fremont by fall of 2020. We are also accelerating our European Gigafactory efforts and are hoping to finalize a location choice in the coming quarters,”
“We are working to increase our deliveries sequentially and annually, with some expected fluctuations from seasonality. This is consistent with our previous guidance of 360,000 to 400,000 vehicle deliveries this year. Additionally, we expect positive quarterly free cash flow, with possible temporary exceptions, particularly around the launch and ramp of new products. We believe our business has grown to the point of being self-funding,” the company said.