After-hour stocks plunge as Tesla reports $408 million loss in Q2 2019

Tesla has reported a net loss of $408 million in Q2 of 2019. The earnings’ announcement resulted in an 11 percent shrink in the after-hours trading of the company’s stocks. The loss translates into a dip of $2.31 per share. 

Tesla divulged its second-quarter earnings report on Wednesday. The report reveals a major recovery over losing $702 million in the first quarter of this year. However, the EV maker has assured the stakeholders of returning to profitability in the next quarter. The negative figures come despite the fact that the company had done a record delivery of 92,500 EVs in the second quarter, which it announced earlier this year. Besides the revelation of the loss, the company has also reported generation of $6.3 billion in revenue in the same quarter. 

The aforementioned revenue figure ($6.3 billion) of the second quarter shows a 40 percent increment over what the company generated ($4.5 billion) in the previous quarter. The jump in figures is majorly associated with an increase in sales, in which, the largest share is of Model 3. Tesla also ended up with $5 billion cash in the second quarter. 

Apart from the numbers, there is another news that deserves equal attention. Company’s CEO Elon Musk has announced that Tesla’s co-founder and chief technology officer JB Straubel will be stepping down from his current position. He will take up an advisory role and the vacant place will be filled by Drew Baglino, who is currently the VC of technology in Tesla.

Musk believes that the primary reason behind slow sales is the people’s expectation of a refreshed S and X. A few days ago, the CEO rejected the rumours that were revolving around such introduction of a refreshed Model S and X. However, the company will be launching a Model Y crossover in the market.