Tesla stock tanks after company’s larger quarterly loss, sales miss

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Tesla shares fall further after No. 2 exec J.B. Straubel to leave his post.

Tesla Inc. shares fell more than 10% after hours Wednesday after the Silicon Valley car maker reported second-quarter results well below Wall Street expectations, despite coming on the heels of record sales for the company.

Analysts polled by FactSet had expected Tesla to report an adjusted quarterly loss of 35 cents a share on sales of $6.5 billion. It was the second time this year investors heard major personnel news on a post-results conference call; in January, during the fourth-quarter 2018 call, Tesla announced longtime Chief Financial Officer Deepak Ahuja was leaving.

In the letter to investors announcing the results, Tesla said it was “simplifying” its approach to guidance and that it is “working to increase our deliveries sequentially and annually,” with some seasonal fluctuations, a goal “consistent with our previous guidance of 360,000 to 400,000 vehicle deliveries this year.

Musk brushed off a question about demand and the impact of the diminishing tax credits, saying that demand for its vehicles was already better in the third quarter than the second quarter’s. Local production of the Model 3 in China is on track by year-end, it said. Tesla is also “accelerating” its efforts in Europe and hopes to announce a location for a factory there “in the coming quarters.”

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