Tesla second-quarter revenue drops, shares tumble 11%

Tesla Inc (TSLA.O) on Wednesday reported lower-than-expected revenue and a fall in gross margins for the second quarter, sending its shares down nearly 11% in extended trading.

Total revenue rose 58.7% to $6.35 billion in the three months ended June 30, less than the $6.41 billion estimated by analysts, according to IBES data from Refinitiv.

Tesla said it is aiming for profit in the current quarter but its main focus will be to increase volume, expand capacity and generate cash.

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Striving to improve margins and post a profit later this year, Tesla has laid off workers and pledged to close some stores to lower costs. It has also tinkered with its pricing and dropped some model variants in recent months..

The company also said it was looking to produce 10,000 vehicles of all models per week by the end of 2019.

Tesla made good on Chief Executive Officer Elon Musk’s promise of delivering record number of electric cars in the second quarter, citing improved logistics system, and temporarily quelling fears about demand for its cars.

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Total gross margins dipped to 14.5% from 15.5% a year earlier.

Net loss attributable to common shareholders was $408.3 million, or $2.31 per share, in the latest quarter, compared with $717.5 million, or $4.22 per share, a year earlier.

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