Tesla Cuts Quarterly Losses as Revenue Soars

Tesla Inc. narrowed its second-quarter loss to $408 million from $718 million last year as automotive-related revenue surged 60% to $5.4 billion.

Still, that loss was more than investors expected, and Tesla’s stock price opened today at $233.50, down more than $31. CEO Elon Musk says the company hopes to deliver a profit in the current quarter. But he tells shareholders that isn’t his top priority.

Tesla delivered 95,400 electric vehicles, including 77,600 of its Model 3 midsize sedans, in April-September. Both totals were quarterly records.

The average selling price of a Model 3 in April-June was a “stable” $50,000. The company says the Model 3 again outsold all piston-powered competitors combined in the U.S.

Inventories of unsold vehicles to a tight 18-day supply, according to the company. That compares with 55 days a year ago and 30 days at the end of March. The industry considers a 65-day supply normal.

Tesla’s factory in Fremont, Calif., has shown the ability to make 7,000 Model 3s per week. The company hopes to achieve a combined production rate of 10,000 units per week for all models by the end of this year. The producer reiterates that it expects full-year output will reach at least 360,000 vehicles.

The company reiterates that it intends to begin building Model 3s in Shanghai by the end of this year. It also aims to launch production of the Model Y midsize crossover, which shares many components with the Model 3, in California by fall 2020.