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Tesla's second-quarter earnings fall short of Wall Street expectations

Jul 25, 2019, 02:23 IST

Joshua Lott/Getty

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Tesla on Wednesday reported second-quarter earnings that fell far short of Wall Street's expectations.

Here are the important numbers:

  • Earnings: $-1.12 per share versus $-0.31 expected
  • Revenue: $6.35 billion vs $6.45 billion expected

"This quarter, we are simplifying our approach to guidance. We are 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," the company said in a letter to shareholders.

Tesla's stock price fell more than 8% in after-hours trading following the earnings release.

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The company previously released its production and delivery numbers for the quarter in early June, setting a new record. In the three-month period from April through June, the company produced 87,048 cars and delivered 95,200.

On a conference call following earnings, analysts are expected to quiz Musk and other executives about continuing demand for Tesla vehicles, as well as the company's operational strategy going forward, updates on its Shanghai factory that's currently under construction, and its home-energy business.

Read more: Layoffs, SEC battles, and Elon Musk's tweets: 2019 looks like another chaotic year for Tesla

In April, Musk unveiled a new autonomous vehicle strategy for the company. The company says it plans to have a million robo-taxis powering a network of autonomous vehicles by 2020, Musk said. Doubling down on that goal, Musk told investors on a conference call hosted by Goldman Sachs in May that, if successful, the Tesla Network could make the company worth $500 billion - more than 10 times its current market value, CNBC reported.

This story is developing. Refresh this page for updates.

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