• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days Does Toyota Know Something That We Don’t?
  • 3 days America should go after China but it should be done in a wise way.
  • 9 days World could get rid of Putin and Russia but nobody is bold enough
  • 11 days China is using Chinese Names of Cities on their Border with Russia.
  • 1 hour "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 15 hours Even Shell Agrees with Climate Change!
  • 11 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 12 days Putin and Xi Bet on the Global South
  • 12 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Iraq Moves to Take Control of Kurdistan's Finances

Iraq Moves to Take Control of Kurdistan's Finances

The Iraqi federal government is…

Chesapeake's Production Cut Shakes Up Natural Gas Markets

Chesapeake's Production Cut Shakes Up Natural Gas Markets

Chesapeake Energy's decision to decrease…

Tesla Stock Shoots Up Despite Another Q2 Loss

Tesla reported a net loss of US$717.54 million for the second quarter, an increase on both a quarterly and annual basis, but the company’s stock climbed up on the news that the Model 3 has started making money.

Indeed, in revenues Tesla reported US$4 billion for the second quarter of the year, up from US$3.41 billion for the first quarter and US$2.79 billion for the second quarter of 2017. Sales of the Model 3 after the urgent ramp-up of production contributed to this revenue increase, with the company reporting “dramatic reductions in manufacturing costs”.

Also, the gross margin on the Model 3—the car that is planned to turn Tesla into a mainstream carmaker—turned “slightly positive” during the second quarter, which helped the overall results and marked another step along the way to mainstreamness for the luxury EV maker.

The company also reported another quarter of negative cash flow, but according to CEO Elon Musk, Tesla expects to turn cash-positive this quarter as it maintains a production rate of 5,000 Model 3s weekly. What’s more, Musk told investors that Tesla could even turn in a profit this quarter.

Related: An Unexpected Windfall For U.S. Solar

This is not the first time that the CEO has made this promise, and no investor would be blamed if they treated it with some skepticism, but judging by the stock performance of Tesla after the announcement of the second-quarter results, investors in the company are ready to take any straw Musk gives them to stay on board with the company.

Despite analyst warnings that Tesla will crash and burn before the year’s end, Musk is confident that the company will actually report profits for both the third and the fourth quarter of 2018 and reiterated that there was no need to raise more funds, again contrary to analyst forecasts that Tesla needs an urgent equity injection. On the contrary, according to Musk, Tesla is now in a position comfortable enough to start repaying debts.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News