‘Ludicrous’ economics? Tesla chalks up a Q2 loss of £220 million

Published: 05 August 2016

► Tesla loses £220 million in Q2 2016
► Delivery numbers fail to meet 17,000 target
► £15,000 loss on every car produced

Tesla has announced a loss of £220 million for the second quarter of 2016, marking its thirteenth consecutive quarterly loss.

Consequently, Elon Musk’s all-electric car company lost some £15,500 on every car it built in that period. In addition, 14,402 cars were delivered during the quarter – a 15% shortfall from the company’s target of 17,000.

The UK's best electric cars and EVs

What’s this mean for Tesla's future?

Despite the uninspiring figures, Tesla is not stepping back from its heady target of 50,000 for the second half of 2016.

With the recent release of the Model X SUV, impending Model 3 and announcements for an upcoming minibus and compact crossover, the company shows no sign of stagnation in its production plans.

But with last week’s opening of their new Gigafactory and the £1.95 billion acquisition of SolarCity on Monday, the sustainability of Tesla’s economic model is under scrutiny. So much so, that the company’s takeover of the solar technology company created widespread backlash among its investors.

Sounds like there’s more trouble brewing...

The California-based company are keen to draw attention to the 400,000 pre-orders for the Model 3, which is due to arrive in 2017 and hoped to solidify the company’s standings – assuming it can build them quickly enough, that is.

However, following a two-year delay in the arrival of the Model X and the controversies surrounding Tesla’s autopilot system, this latest report is resulting in a flurry of questions over the company’s future.

Read more industry news

Tesla Model 3

Comments