Tesla Motors Announces Profit Loss Up To $200 M;Find Out The Reason Why

Aug 05, 2016 06:10 AM EDT | Eve C.

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Telsa Motors CEO Elon Musk faces a whopping $200 M profit loss for the second quarter of this year. This is just one of the challenges that the car company needs to overcome- not to mention the car accident that involved its Model S.

The company announced the deficit on Wednesday, reported LA Times. According to the source, the series of quarterly losses are much worse than expected.

Case in point, Tesla is gearing up for the production of the latest car, the Model X and is planning to "mass-market" the Model 3 sedan. So far, as per the website, the company's mainstay model is the Model S.

Amidst the loss, the CEO still believes that the company is still in a good place. He further explained that the deficit was due to the fewer vehicles delivered than the projected target.

"Basically, we were in production hell for the first six months of this year," Musk said. "Now the production line is humming. Things are really quite stable with the S and X." 

So far, the company focuses on pushing the Tesla Model S, which already has a tag price of $35,000. Musk also ensured the public that they will be back on track right before the year ends.

Aside from this, Tesla is facing as well the effects of the fatal car crash which happened last May. The controversial accident involves the Autopilot system, which was made by the company's then-partner, Mobileye.

However, a previous report revealed that it was Tesla's brake system that caused the crash. The investigation is still ongoing, reports New York Times

Notably, the 45-year old Joshua Brown was driving his Tesla Model S car when the 18-wheeler truck collided on his way which took his life. In the meantime, the public is looking forward to more updates and reports about Tesla and their plans for the future.

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