Tesla reports $408 Million loss in Q2, announces co-founder and CTO is stepping down

Tesla delivered 50 percent more vehicles in the second quarter (Q2) of 2019 compared to Q1 but still posted disappointing results in Q2—even after the record deliveries.

What Happened?

The automaker’s Q2 earnings report revealed a net loss of $408 million.

Also, JB Straubel, Co-founder and chief technology officer is stepping down from his day-to-day role as an executive at the company.

Why It Matters

Tesla met its Q2 guidance in the sense that its Q1 net loss of $668 million was almost halved to $389 million ($272 million if you strip out restructuring charges).

The fact that the company delivered 50 percent more vehicles in Q2 compared to the first, yet still lost money, means the problem that spooked investors back in April remains.

To top all this, news of the company CFO’s departure following a string of other departures is even more jarring.

“I’d like to thank JB for his fundamental role in creating and enabling Tesla,” CEO Elon Musk said on a call with analysts Wednesday evening. “If we hadn’t had lunch in 2003, Tesla wouldn’t wouldn’t exist, basically.”