Tesla Losing More Than $4,000 For Every Car Sold

While other luxury car makers were enjoying good sales that translates into profits for the company, it was the opposite for Elon Musk's Tesla Motors. It reported a $359 million operating loss for the second quarter.

That translates into a loss of more than $4,000 for every Model S electric sedan the company sold, reports Venturebeat. To cut further losses, Musk, the CEO, said on Wednesday that Tesla would cut its production target for 2015 and 2016.

Musk is also looking into other options to raise capital, including through a public offering. His target is for Tesla to register profits by Q1 201 to fund the production of mass-produced multiple models of electric cars as well as expand the manufacture of electric power storage systems.

The losses caused Tesla's cash on hand to decrease to $1.15 billion as of June 30 from $2.67 billion 12 months earlier. News of Musk's plan to further expand production caused shareprices of Tesla to drop almost 9 percent on Thursday and another 2 percent on Friday.

To launch Model X, a battery-powered SUV with vertical opening falcon wings, Tesla plans to spend $1.5 billion in 2015. It includes the manufacture of 50,000 to 55,000 of its standard models for the whole of 2015.

Meanwhile, Tesla would open in a couple of weeks a charging station near a petrol station at Kennewick Fred Meyer, 2811 W. 10^th Avenue. It links I-84 and I-90 routes. The station could accommodate eight vehicles at a time and would allow Tesla car owners to power up while passing through the Tri-Cities, reports Tri-city Herald.

"Tesla is very focused on providing free long-distance travel across the country ... We place Superchargers along major corridors that our customers often travel and that often connect city centers," says Tesla spokeswoman Alexis Georgeson.

Tesla has existing charging stations in Wildhorse casino in Pendleton, Best Western Plus in Ritzville and Holiday Inn Express in Ellensburg.