Electric car maker’s fast-selling Model 3 has surged income - but it can’t offset the cost of ongoing investment

Tesla has more than doubled revenue in the second quarter (Q2) of 2017 thanks to significant increases in customer deliveries.

The American brand recorded total revenue of almost $2.8 billion (£2.12bn) between March 30 and June 30, more than $1.5bn (£1.13bn) on top of what it achieved in the same period of 2016.

Tesla attributed much of its revenue growth to a surge in customer vehicle deliveries, which have just grown to also include the heavily in-demand Model 3. Deliveries grew by 53% compared to Q2 of 2016 – something Tesla said was unique in an otherwise “flat luxury vehicle market”, with 22,026 Model S and Model X deliveries in Q2 of 2017 growing the brand’s year-to-date deliveries to 47,077.

Tesla’s automotive operations contributed 93% to its revenue this Q2.

Ongoing investment into its battery-producing Gigafactory in Nevada, as well as research and development for future models, has led to it accruing losses of $336 million (£254m) in the three-month period, up from $293m (£221m) in 2016.

However, the brand’s overall progress has resulted in an 8% increase in its share prices.

Tesla expects demand for its Model S and Model X to grow through the second half of 2017. It will ramp up production of its Model 3 to 20,000 units per month from December.

More content:

Tesla Model 3 Performance version due in 2018

Join the debate

Comments
12

3 August 2017

When the likes of Facebook, Google used to make big losses early on some big investors saw the long term picture, whatever happened to Google? Either way the bigger picture is the EV sales potential and it now shows just how far ahead Telsa are in the game.

p.s. there’s a quick spin review on several sites including Top Gear of the Model 3. It makes good reading!

 

 

Hydrogen cars just went POP

3 August 2017

Big headlines about losses sound scary but that's just the way really big business works. In the long run, they should become mega-profitable, like Apple. It's not a given though – they will have to deliver a good product and keep ahead of rivals, and that's not going to be easy once the rivals get going with their electric cars. Will Tesla suffer the same fate as Kaiser and Frazer in the early fifties? I doubt it but I wouldn't bet money on it.

3 August 2017

I've said it before and I'll say it again.  Tesla are much smarter than little old me, but if I had been in charge I would have gone for a Mokka-sized SUV.  Hot cakes, and all that.  I believe demand would have tripled.  'Doubled' obviously isn't good enough to pay for the eseential investment.  I suspect that the solar roofs are going to sell really well, though.  I want one.

3 August 2017
Chevrolet have already beaten them to it with the Bolt.
poon

3 August 2017
Bazzer wrote:

I've said it before and I'll say it again.  Tesla are much smarter than little old me, but if I had been in charge I would have gone for a Mokka-sized SUV.  Hot cakes, and all that.  I believe demand would have tripled.  'Doubled' obviously isn't good enough to pay for the eseential investment.  I suspect that the solar roofs are going to sell really well, though.  I want one.

Develop and create a market for larger more expensive models first, then bring in smaller but higher volume models which create economies of scale. The larger, higher retail cost models then begin to generate profits as production costs decrease, this also provides further revenue to diversify the model range. Before you know it, you have created a proper car company.

4 August 2017

Fair enough.  Thanks for the education.

3 August 2017
Since Tesla started making headlines with its sensational cars, the detractors have been slating it over one pretext or the other. That has not stopped or even slowed the stellar rise of this visionary American car firm while the Big Germans in cahoots with the opportunist Merkel continue to flog the stale dog of diesel.

3 August 2017

Revenue may have doubled but, if I'm reading this correctly, Tesla is currently loosing about £1 billion per year on an £8 billion turnover. At some point, it will have to make a profit to survive, or sell out to another manufacturer with money to invest. Still the company has done extremely well to get to this point, so who would bet against it? 

3 August 2017

Just another unprofitable tech company overvalued due to media and fanboy obession. They are certainly no different than other tech companies in collecting data....

Facebook, Google and Apple have all been accused of spying on users in a fashion similar to methods used by America's National Security Agency (NSA). How can we trust other tech companies such as Tesla?

We already know that Tesla collects a ton of data from each vehicle they sell, which they currently claim is to “improve our vehicles and services for you”. For those that don’t know, Tesla only give examples of the information they collect, but admit to collecting the following: vehicle identification number, speed information, odometer readings, battery use management information, battery charging history, electrical system functions, software version information; infotainment system data, safety-related data and camera images (including, e.g., information regarding the vehicle’s SRS systems, braking and acceleration, security, e-brake, and accidents), short video clips, information regarding the use and operation of Autopilot, Summon, and other features. They further claim they may collect such information either in person (such as during a service appointment) or via remote access.

Some may like the idea of Tesla being the future, but I can understand those who are concerned.

4 August 2017

They admit to collecting such things as "vehicle identification" and "battery use management". OMG, I'm deffo never gonna buy a car from a company that keeps a record of the VIN number of my Telsa.

You 're right to be paranoid on page 36 of George Orwell's book 1984 it clearly highlights future car companies will collect and misuse VIN numbers to suppress the masses.

 

Hydrogen cars just went POP

Pages

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Alfa Romeo Stelvio
    The new Alfa Romeo Stelvio. We've tested it on UK roads for the first time
    First Drive
    18 August 2017
    First tilt on UK roads reveals a chassis almost as absorbing as the Giulia’s, though the Stelvio’s comfort and quality levels may disappoint SUV clientele
  • Car review
    18 August 2017
    Amid a broader vRS refresh, Skoda has built its most powerful Octavia yet to take on the established order
  • Jaguar F-Type Convertible 2.0 i4 on the road
    First Drive
    16 August 2017
    Having been previously impressed by the agile four-cylinder F-Type, now is our chance to try it in the UK and in open-top form. But can this entry-level Jaguar sports car hold off the impressive Porsche Boxster?
  • Aston Martin V8 Vantage AMR
    The Aston Martin V8 Vantage AMR is a swansong for the Vantage - but the first model to sport the AMR title
    First Drive
    16 August 2017
    Aston Martin's swansong for its venerable Vantage sports car allows it to bow out with its head held high, yet the performance AMR sub-brand's first outing leaves you feeling short-changed
  • Range Rover Velar 2.0D
    First Drive
    15 August 2017
    Can the newest Range Rover deliver the goods when it's being powered by a four-cylinder, 2.0L diesel engine? We tried it on UK roads to find out