Tesla can be hopeful despite massive losses
Tesla is confident of turning profits around after losing more money in 2016. A wave of new models will help.
Not such a rosy 2016 financial year for Tesla as the company reported a €220 million loss in Q2 – a trend that has continued for the last three years.
Yet despite losses which would send most companies down the drain never to be seen again, Tesla has said it will meet future targets before the end of 2016 because of new cars like the Model X SUV and the compact, affordable Model 3 which will rival cars like the BMW 3 Series.
Tesla delivered 14 402 cars in Q2 of this year, some way off the 17 000 predicted while sales of €998 million again missed their targets.
The good news is that Tesla’s sales have risen steadily in the last month while sales were up by 67% on the year before. Meanwhile Tesla’s gigafactory worth close to £1.96 billion will ensure holistic energy production and consumption. Although incomplete at this stage, the gigafactory will ramp up production levels and reduce cost. We wouldn’t be surprised if the gigafcatory eventually sells its battery technology to rival brands.
