Still working toward indisputably increased earnings while growing the business, Tesla reported a record 7,579 sales and net income of $16 million by non-GAAP accounting last quarter, while losing $62 million according to customary accounting.
The discrepancy comes from Tesla’s practice of reporting by non-generally accepted accounting principles (GAAP). These leave out financials affected by stock-based compensation and non-cash interest expenses and add in deferred revenue and related costs for the Model S sold with a residual value guarantee or buy-back terms.
On the upside – in addition to the fact that the innovator exists at all and is globally expanding – the company increased year-over-year revenues by 90 percent and posted records with 7,579 deliveries and 8,763 vehicles produced.
Second quarter losses under GAAP accounting of $61.9 million compares with $30.4 million lost a year prior. Revenue of $769.3 million was up 90 percent compared to $405.1 million.
Revenue was affected by $107.7 million spent on research and development, up from $52.3 million.
Plans for Q3 are to build about 9,000 cars, and for the year, Tesla aims to invest between $750 million and $900 million while selling 35,000 cars.
Tesla’s factory has been getting upgrades to accommodate Model X crossover production due to start imminently. The company also is working toward officially announcing where its gigafactory battery plant will be located aimed to set the stage for economies of scale, and better profitability.
“Our [capital expenditures] and r&d numbers are better than they appear because we’re working on stuff you don’t know about,” Musk said.
Demand for the Model X is strong, he said, and “alpha” prototypes should be ready by next week for production design validation. “Beta” prototypes for late pre-sales testing should be up and running by the first quarter of the new year.
For more details, see Tesla’s shareholder letter.