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Tesla Burns A Record $13 Million Per Day In Q2... And It's About To Get Worse

One month after Tesla (TSLA) stock tumbled when the electric car maker announced that it had missed Wall Street estimates for the second quarter, delivering only 22,000 vehicles instead of the 22,912 expected, moments ago Tesla reported adjusted, non-GAAP Q2 earnings which beat expectations, with an adjusted loss of $1.33, better than the -$1.88 expected, which curiously was identical to the -1.33 loss in Q1.

In the second quarter, Tesla generated revenue of $2.79 billion, also better than the $2.51 billion expected, and reported that Q2 Automotive gross margin was 25.0% non-GAAP, below the 25.48% expected.

Tesla continued to burn cash, and in the second quarter it outdid not only itself but Netflix too, with a record cash burn of -$1.16 billion - or roughly $13 million per day - almost double what it burned in Q1. In Q3, Tesla's CapEx was $959 million, a number which is set to surge as the Model 3 launch continued well into into Q3: Tesla expects it will burn another $2 billion in CapEx in the second half.

Understandably, the cash burning behemoth was proud to announce that it had more than $3 billion in cash on hand at the end of Q2. There is just one problem, and this wasn't announced in the letter: Tesla also $3.9 billion in accounts payable and accrued liabilities, as the company drains all net working capital sources of cash it can find. Meanwhile, accounts receivable actually declined. This was the first quarter in which paybales and accrued were nearly $1 billion more than cash and equivalents!

In terms of deliveries, there were no surprises: as the company already disclosed, it delivered 22,026 Model S and Model X vehicles in Q2, a total of 47,077 in the first half of the year. Model S and Model X combined. Ever optimistic, the...