Company spent nearly $1 billion in capital expenditures.
Tesla’s quarterly revenue expanded once again, beating Wall Street’s estimates, as deliveries of its high-end all-electric Model S sedans and sports utility vehicle Model X continued to grow.
Shares rose as much as 5% to $342.1 in after-hours trading on Wednesday.
However, the automaker’s net loss attributable to shareholders widened to $336.4 million for the second quarter ended June 30 from $293.2 million a year earlier. On a per share basis, net loss attributable to shareholders narrowed to $2.04 from $2.09.
Revenue rose to $2.79 billion from $2.7 billion in the previous quarter, beating analysts’ average estimate of $2.51 billion, according to Thomson Reuters I/B/E/S. And its revenue is more than double the $1.27 billion Tesla earned during the same quarter last year.
Tesla, which had faced production issues, maintained its delivery guidance of 50,000 vehicles for the second half of the year. Chief Executive Elon Musk said last week that the company would go through at least “six months of manufacturing hell.”
Automotive gross margin, which excludes the sale of zero emission vehicle (ZEV) credits, rose to 25% from 23.6% a year earlier.
The company said it expects positive Model 3 gross margins in the fourth quarter.
Tesla’s capital expenditures were $959 million in the second quarter, funds spent on preparing to produce the Model 3 mass-market car, its gigafactory near Reno, Nevada, and expansion of its customer support infrastructure that includes service centers. Total capital expenditures in the first half of 2017 were $1.5 billion, a lower than expected number, Tesla said.
The company reported it has $3 billion of cash and cash-equivalents on hand as it headed into the third quarter, compared with $4 billion at the end of the previous quarter and $3.25 billion from a year earlier.