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Recently, Tesla reported a net loss of $408 million in the second quarter of 2019, bringing Tesla's net loss in the first half to $1.11 billion, but the company remains confident that it will return to profit in the second half of this year. In this regard, industry insiders said that Tesla is facing tremendous pressure to make a profit this year.

According to Tesla's second-quarter results, the company had revenue of $6.35 billion in the second quarter, up 58.67% from a year earlier. In terms of profit, Tesla posted a net loss of $408 million in the second quarter, down 43.18% from a year earlier. At the same time, Tesla's operating income in the first half of this year was 10.891 billion US dollars, an increase of 46.97 percent over the same period last year, while the net profit loss was 1.11 billion US dollars, a decrease of 22.2 percent over the same period last year.

It is worth noting that Tesla's increase in operating income in the second quarter was largely due to the best delivery performance in the second quarter. Although sales of Tesla's high-end models, Model S and Model X, dropped sharply this year, sales of its main model, Model 3, soared by 321% in the first half of the year, providing Tesla with a lot of business income.

In fact, if Tesla wants to turn losses into profits in the second half of this year, he still has to rely on the increase in the delivery volume of his main model Model 3 in the market. However, industry insiders point out that Tesla's Model 3 sales increase is due to the reduction in prices, which has also affected high-profit models such as Model S and Model X. it is undoubtedly very difficult for Tesla to turn losses into profits in the second half of the year by relying solely on a Model 3.

Elon Musk believes that to increase sales and lower prices is the most direct way to stimulate, while for Tesla, he is reducing the production costs of models to increase profitability. Cutting prices to attract more consumers is not harmful to enterprises at all, but can bring more revenue for the company. He said that in the second half of this year, Tesla will be able to turn losses into profits in the following quarters of the second half of this year by reducing costs and increasing gross margins and lowering prices to increase sales.

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