Electric car manufacturers Tesla have reported losing a total of $408 million during the second quarter of this year in its quarterly earnings report, per MotorTrend.
Of course, that pales in comparison to the $702 million loss for the previous quarter but it's still more than enough to have Wall Street turn its nose. The company's stock dropped 11 percent in after-hours trading as they closed the quarter with $5 billion in cash.
Tesla CEO Elon Musk announced during the earnings call that company co-founder and chief technology officer JB Straubel will relinquish his position and move to an advisory role. The latter has been with Tesla since 2003 and the company's lithium-ion battery tech is his brainchild. He will stick around as a senior advisor while vice president of technology Drew Baglino will be promoted to fill the void.
Tesla claims to have manufactured 87,048 vehicles and delivered 95,356 units during the period; both of these are said to be record figures. Of the vehicles delivered 77,734 were Model 3s. The long-range version of the Model 3 remains the most commonly sought Tesla and sells for around $50,000 on average.
A recent update revealed the revealed that Models S and X had sold 17,722 by the end of the quarter but Musk says he doesn't believe the Model 3 is cannibalizing their sales. He attributes the low sales to the number of people waiting on refreshed Models S and X but has assured persons possibly stalling that no refreshed version is on the way.
The automakers have also confirmed that Model Y production is set to kick off at the Fremont plant in California by the start of fall next year. The company expects the Model Y crossover to overtake the Model 3 in popularity and predicts a higher average selling price. They also pledge to report profits by Q3.