Tesla Motors released their quarterly financials yesterday, we look at how they performed last quarter and what is to come.
- Revenue: $769.3 million (compared to $405.1 last year)
- Net Loss: $61.9 million ($30.5 million same period last year)
- Delivered 7,579 cars in the second quarter
- Q4 car deliveries projected to reach 13,000 after plant expansion
While the electric car market is still only accounts for around 1% of all car sales, Tesla continues to dominate the high-end segment and there is are no signs of sales slowing down. The company will invest in an expansion of the Fremont plant which will allow them to produce about 13,000 cars in the fourth quarter. With demand growing internationally as well the production capacity will be further increased, the goal is to be able to make 1,000 vehicles per week. Recently Telsa delivered the first Model S cars to the UK, Hong Kong and China.
“Model S is off to a very encouraging start in China,” CEO Elon Musk said.
As the market continues to grow the competition from the big automakers could be a challenge for Tesla. But Elon Musk is investing big in order to ensure the company is set up for the future. Earlier this week a partnership with Panasonic was announced. The two companies will build a “gigafactory” to produce cells, modules and packs for Tesla cars and for the stationary energy storage market. This will be important to drive down cost and increase the quality of batteries in the future.
The cost of the plant is going to be around $4 – $5 billion, Tesla will cover about 40-50% of that. This year alone the company said it will invest $950 when it comes to increasing production capacity and the new plant.
Encouraging news also came in regards to the Model X. As planned, the first prototype of the luxury SUV is expected to come out next week and the company is on target to start sales in spring 2015.
Audi has recently shown great progress when it comes to electric cars, we previously wrote about the R8 and Q8 which will directly compete with the Model S and Model X. Audi is also rumored to have an electric Q2 and Q6 in the works, with a release date set for 2017, the same time Tesla is planning to launch the $35,000 Model 3.
Competition will heat up but Elon Musk doesn’t seem to be afraid of that, instead he embraces the big automakers to step up their efforts and made all Tesla patents available for them to use. If Tesla continues to invest and innovate, competition could be a good thing. The big automakers can drive adoption of electric cars to a new level which everyone will benefit from.