Despite delivering a record number of Electric Vehicles (EVs) (95,356 vehicles) in the second quarter of 2019, the world’s leading EV maker Tesla, Inc. (Tesla) found its losses piling up, as it reported a second successive quarterly loss of US$408.3 million. Investors’ concerns over the company’s future and its ability to turn a profit sent Tesla’s stock plummeting. Its share prices dropped 11% in after-hours trading after the announcement of the Q2 earnings, on course to knock more than US$5 billion off its market value. As shareholders continued to question the company’s long-term finances, cash flow, and profitability, Tesla’s CEO Elon Musk (Musk) said, “From a profitability standpoint we expect to be probably around break-even this quarter and profitable next quarter. I feel pretty confident about that.” ...

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