Tesla reports larger-than-expected losses of $408 million in second quarter

Tesla reported Wednesday a loss of $408 million, or $2.31 a share per share, and generated $6.3 billion in revenue in the second quarter despite record deliveries.

Tesla shares fell 11% after the report was posted.

Earlier this month, Tesla reported it delivered 95,200 of its electric vehicles in the second quarter, a dramatic reversal from a disappointing first period. Those numbers have been since adjusted to 95,356 vehicles. The record-breaking figures stood in stark contrast to the company’s first quarter delivery numbers when it reported deliveries of 63,000 vehicles, nearly a one-third drop from the previous period.

Analysts surveyed by FactSet were expecting an adjusted loss of 35 cents a share on revenue of $6.47 billion. The net loss in the second quarter included a $117 million of restructuring and other charges, the company said in its earnings report.

While earnings missed Wall Street expectations, Tesla has recovered since the first quarter of the year when it posted a loss of $702 million, or $4.10 a share, after disappointing delivery numbers, costs and pricing adjustments to its vehicles cut into profits. When adjusted for one-time losses, Tesla lost $494 million, or $2.90 a share in the first quarter.

Revenue has also jumped 40% from $4.5 billion in the first quarter to $6.3 billion in the second period thanks again to the increase in sales, particularly for the Model 3.

Those losses were smaller than previous quarter,  were buffered by record-setting deliveries in the second quarter.

Tesla generated free cash flow (operating cash flow less capital expenditures) $614 million compared to a loss of $920 million in the first quarter.

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