Tesla has endured huge financial losses despite delivering a record number of sales of its electric vehicles in the second quarter.
On late Wednesday, Tesla reported a significantly huge quarterly loss followed by its co-founder and Chief Technology Officer J.B. Straubel resignation.
The losses come as the company is still spending heavily on capital projects. CEO Elon Musk said the automaker is on target to open a plant in China by the end of the year and is making plans for another in Europe.
Elon Musk said,” Tesla is expanding at an exponential rate.” However, S&P Global Market Intelligence analysts had estimated second-quarter revenue of $6.44 billion in revenue and with a loss of over $400 million on revenue.
The mark-to-market profits for Tesla short-sellers went up to $1.55 billion on Thursday, bringing year-to-date mark-to-market profits up to $3.06 billion, up 35% for the year, according to financial analytics firm S3 Partners.
Musk has said that demand is still strong. He expects the automaker to come close to breaking even in the current quarter and to make a profit in the final quarter.
Tesla’s stock rose 1.8% to close at $264.88 during regular trading hours on Wednesday. But the share price fell 11.1% in after-hours trading to $235.50.
Even though Tesla’s sales have significantly increased, the company will have to take regressive measures to ensure improvement in terms of profit as well.
