American electric-car maker Tesla Inc. (NASDAQ:TSLA) delivered its second-quarter earnings report on Wednesday that beat most expectations. The company who posted smaller losses this quarter also announced that the demand for its Model S has risen back up again despite the ongoing hype surrounding the Model 3 vehicle whose orders has been amounted to almost 1,800 daily.
Smaller Q2 Losses
For the second quarter, the company posted losses of $1.33 per share compared to forecasts that the company would post a loss of $1.88 per share. During the previous quarter, Tesla shares slumped after it delivered a loss of $1.33 per share versus most analyst estimates of 81 cents per share in losses. The company also forecasted then that Tesla's capital expenditures might be higher than $2 billion
The revenue of the company was higher at $2.79 billion compared to consensus analyst estimates of $2.51 billion. The company’s revenue during the previous quarter stood at around $2.7 billion by the month of July as the company continuously ramps up its Model 3 production.
The company is expecting the sales from its Model 3 vehicle to drive an upbeat cash flow for the company before the year ends and offset its recent losses from boosting its production. According to Tesla chief executive officer, the company currently does not see the need to raise additional equity despite being able to cut around $1 billion of its cash reserves during the past quarter.
Tesla launched its much-awaited Model 3 last week to employees who placed orders. It also reported that its Model 3 reservations have bubbled to 1,800 every day despite its current outlook of producing only 1,500 vehicles for the third quarter.
Tesla also has a target of completing 500,000 vehicles every year starting next 2018 which would require the company to burn more of its cash reserves. For the second quarter, the company has already spent around $1.16 billion which is $144 million up from the previous year.
Tesla Stock Movement
Tesla shares which have rallied by 52% this year and has traded above the $300 surpassing the market capitalization of Ford and overtaking it as the second largest American automobile maker by market cap. Following the release of the earnings report, Tesla shares jumped by $25 at 8% to $351.67 during the after-hours trading.