Tesla posts $408M net loss in Q2, $6.35B in revenue

The Shanghai Gigafactory is on track to launch by the end of the year, while the Model Y is expected to enter production by fall 2020.

Tesla has posted its Q2 financial results, reporting a $408 million net loss on $6.45 billion in revenue.

The company generated $614 million in free cash flow for Q2. Combined with a public offering of equity and convertible bonds worth $2.4 billion, the automaker is now sitting on $5.0 billion of cash and cash equivalents as it enters the third quarter.

"This level of liquidity puts us in a comfortable position as we prepare

to launch Model 3 production in China and Model Y production in the US," Tesla wrote in its letter to investors. "As a result of our strong deliveries and continued progress on cost efficiencies, our GAAP net loss declined significantly compared to Q1."

The Shanghai Gigafactory is said to be on track to launch by the end of the year, while the Model Y is on target to begin production by fall 2020.