After reporting record-high deliveries a few weeks ago, Tesla (Nasdaq: TSLA) Wednesday posted a narrower net loss for the second quarter, helped by an increase in revenues. However, the results missed analysts’ forecast, sending the stock down during the extended trading session.

Tesla (TSLA) stock plunges after Q2 results miss estimates

During the quarter, revenues surged 59% annually to $6.35 billion, helped mainly by a 60% rise in automotive sales. The top line, however, missed the market’s expectations.

The Silicon Valley-based electric carmaker reported an adjusted loss of $1.12 per share for the June-quarter, which marked a significant improvement from the year-ago quarter when it registered a $3.06 per share loss. Analysts had forecast a narrower loss for the most recent quarter. On an unadjusted basis, net loss eased to $408.3 million or $2.31 per share from $717.5 million or $4.22 per share in the second quarter of 2018.

During the quarter, revenues surged 59% annually to $6.35 billion, helped mainly by a 60% rise in automotive sales

Total operating expenses declined 12 to $1.1 billion, despite the increase in vehicle deliveries and inclusion of $117 million in restructuring and other charges.

Meanwhile, the management said it is on track to launch the Gigafactory in Shanghai, China, by the end of 2019 and roll out Model Y by the fall of 2020. Production in China is expected to start by year-end.

While the average selling price remained stable at around $50,000 during the quarter, manufacturing costs continued to decline. There was a further improvement in the production rate of Model 3.

Tesla Q2 deliveries hit record high of 95,200 units

Reaffirming its earlier outlook, Tesla said it targets to produce 10,000 vehicles of all models, per week, by the end of 2019. In the 12-month period ending June 30, 2020, it aims to produce over 500,000 vehicles globally. The company continues to expect to deliver 360,000 to 400,000 vehicles this year, and report profit in the third quarter and beyond.

A recent statement from the company showed that deliveries of Model 3 nearly tripled in the second quarter, lifting total deliveries to a record high of 95,200 units. The strong performance comes on the heels of the company expanding the market for Model 3 to Europe and China.

Related: Tesla Q1 2019 Earnings Conference Call Transcript

Tesla’s shares last month slipped to the lowest level in two-and-half years, after losing consistently since the beginning of the year. They gained 47% since then and are currently on the recovery path. The stock, which lost 12% in the past twelve months, closed Wednesday’s regular session higher.

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