In its earnings report Wednesday, Tesla reported a larger loss than analysts had predicted, as well as revenues that fell below expectations.
As Musk said in his letter to shareholders:
We delivered fewer cars in Q2 than originally planned as a result of our steep production ramp, which resulted in almost half of Q2 production occurring in the final four weeks of the quarter . . . Given inflection points in the production ramp and firm shipping cutoffs, shifting production by even a short period of time had a disproportionate impact on the number of cars that were delivered by quarter end.
Despite the financial loss, Musk says Q2 sales were slightly higher than the estimates Tesla gave last month. He noted that “Model S remains the market share leader in North America and Europe among all comparably priced four-door sedans, and Model X is quickly gaining ground against similarly priced SUVs in all regions.”
Tesla also has ambitious plans to ramp up its retail presence—likely a response to its SolarCity acquisition—by adding new stores every four days through the rest of the year.