Tesla's $293 Million USD Loss Reflects Its Costly Ambitions
Can the company keep up its growth plans?
It seems Tesla Motors can’t seem to get a break. The motor company announced on Wednesday a second quarter loss of $293.2 million USD, but with ambitious plans to continue building nearly 80,000 cars in 2016 and pulling forward a cheaper sedan aimed at the mass market. The loss was only slightly higher than in the first quarter, but this loss raises the pressure on Tesla to improve its factory output. So far Tesla has been unable to consistently keep up with its growth plans, and investors expect the company will not profit anytime soon due to its ambitious plans. Earlier this week, Tesla’s plan to merge with SolarCity, valued at $2.6 billion USD, was announced. Both companies share Elton Musk as chairman, meaning this deal will bring Musk closer to the second phase of the Tesla Master Plan which involves capturing and storing solar energy at home. The company still remains vague about when it expects to achieve profitability, but it does aim to have the Model S and X lines profitable by the end of next year and a future product line up that includes electric trucks and buses.
