Tesla netted revenues worth $4 billion in the second quarter of this year, up 17% from the last quarter. But the company recorded losses worth $717 million.
The jump in revenues was mainly driven by an increase in production of its cars.
In July, the company achieved weekly production of approximately 5,000 Model 3 cars multiple times while also manufacturing 2,000 Model S and X per week. If Tesla sustains this production level, the electric car maker’s total vehicle output will reach 350,000 per year, leading it to be profitable for the first time in their history. The news has led to Tesla’s stock price to surge close to 10%.
Another positive factor is the cash, which stood at $2.2 billion. This amount is sufficient to maintain current production levels for the next couple of quarters. The company expects the cash balance to increase in the next couple of quarters.
The company produced 53,339 vehicles in Q2 and delivered 22,319 Model S and Model X vehicles and 18,449 Model 3 vehicles, totaling 40,768 deliveries. However, the company is still not out of the woods.
The car maker paid $168 million in interest payments this quarter, up from $149 million from the last quarter. Tesla has a total debt of approximately $20 billion.
There are also concerns about the company’s valuation, which currently stands at $49.7 billion. Tesla is still making losses and has been able to earn just $4 billion in revenues, compared to General Motors, whose Q2 profit was over $2 billion and revenues were $36.8 billion. This is about 400% higher than Tesla’s revenues but the company is valued at just $50.01 billion, only 3% more than the electric car maker.