Despite delivering a record number of its electric vehicles in the second quarter, Tesla endured another round of financial losses despite pressure to become steadily profitable.
The losses come as the company is still spending heavily on capital projects. CEO Elon Musk said the automaker is on target to open a plant in China by the end of the year and is making plans for another in Europe.
The company is also ramping up to start producing its next vehicle, the mid-priced Model Y SUV, later this year. Tesla said it will potentially be more profitable than the Model 3 sedan, with which he shares about three-quarters of its parts.
“Tesla is expanding at an exponential rate,” Musk said.
But it is still losing money at faster clip than predicted by analysts. Tesla lost $408.3 million in the quarter, an improvement from a $718.1 million loss a year earlier. Revenue totaled $6.35 billion, up 59% from a year earlier.