Tesla's losses doubled in the second quarter, and the funds for building a factory in Shanghai will be raised in China

Tesla released its second-quarter financial report on August 1, local time. In the second quarter of this year, Tesla lost $717.5 million, more than double the loss of $336.4 million in the same period last year; the net loss per share was $3.06.

On the same day, Tesla CEO Elon Musk said that Tesla does not currently need financing, and the new factory in China is likely to obtain loans from local banks.

Tesla has been burning money to support the Model, and investors have been skeptical about how Tesla can replenish funds for daily operations. Tesla said that by improving profit margins and reducing costs, the company will become profitable. Musk said, "We will not raise capital at any time. I don't want to do so and I don't plan to do so."

As for the new factory to be built in China, Musk said that the plan will be supported by local Chinese capital. Bloomberg quoted people familiar with the matter as saying that it would cost $5 billion to build a factory in Shanghai, part of which would be obtained from local Chinese partners.

Musk said the company will be cash flow positive in the third quarter. Tesla's overall operating income rose to $4 billion from $2.79 billion in the same period last year, higher than analysts' expectations of $3.92 billion. After revenue exceeded analysts' expectations, the stock rose 9% in after-hours trading.

Tesla will need to add more debt as manufacturing challenges leave the company cash-strapped. Analysts said they believe Musk will turn to Asia because he is unlikely to get better terms from U.S. bond investors, as he did with $1.8 billion of junk bonds he sold in 2017.

Tesla pointed out that by late August, Tesla Model 3 weekly production will reach 6,000 vehicles, and will achieve profitability and positive cash flow in the last two quarters of this year. In the third quarter of this year, Tesla expects the cumulative production of Model 3 to reach 55,000 vehicles, with an average weekly production capacity of 4,230 vehicles. From April to June this year, Tesla produced a total of 53,339 new vehicles and delivered 18,449 Model 3s.

According to Tesla, the gross profit margin of Tesla Model 3 will be around 15% in the third quarter of this year and will rise to 20% in the fourth quarter. "We hope to achieve the goal of 10,000 vehicles per week as soon as possible.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.