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Tesla Reports Net Loss in Second Quarter Despite Record Sales

Motor Trend logo Motor Trend 8/6/2015 Megan Stewart

The second quarter of 2015 marks the third anniversary of the Tesla Model S, and the electric automaker celebrated a record 11,532 deliveries and 12,807 units produced, making it the best-selling electric vehicle in the U.S. Tesla also introduced new variants of the Model S to improve range, performance, and value.

Globally, the Model S saw an increase of sales by almost 30 percent year-over-year, while in Europe the year-over-year sales surpassed 50 percent. Orders doubled in Asia from last quarter thanks to increased investments in the Chinese market.

2015 Tesla Model S 70D© Provided by MotorTrend 2015 Tesla Model S 70D

Despite record sales and a net profit of $955 million, the automaker posted a net loss of $184 million for the second quarter. The automaker notes it is still investing heavily in construction of its Gigafactory facility in Nevada, as well as retooling and preparation for Model X production. The Model X crossover is still undergoing testing, but is on schedule to launch this September.

With that said, Tesla claims it's on track to sell between 50,000 to 55,000 Model S and Model X vehicles in 2015, assuming the launch of Model X production goes smoothly. Tesla says potential setbacks with suppliers could lower its production tally. Following the Model X, Tesla claims it will unveil the upcoming Model 3's final design sometime next year, with deliveries expected to begin in late 2017.

Second quarter 2015 also included the launch of Tesla's pre-owned program, which the automaker says contributed to $20 million in revenue. These vehicles are trade-ins from customers who opted for an upgraded model. The vehicles themselves are retaining their value, and Tesla is offering the pre-owned vehicles with a new 4-year warranty that kicks in on the re-purchase date.

Source: Tesla

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