By Agence France-Presse
The company has faced multiple controversies in recent months, many of them stemming from comments made by enigmatic CEO Elon Musk.
The $717.5 million loss was more than twice the $336.4 million loss reported in the same quarter a year ago. Revenues meanwhile jumped 43.5 percent to $4.0 billion.
Tesla said its closely-watched ramp-up of production of the Model 3 has hit its stride after earlier missing a series of targets.
Output of the Model 3, the company's first targeting the middle market and a major gamble for Musk, met a 5,000 per week benchmark in June and repeated that pace "multiple times" in July.
Tesla said it is on track to hit 6,000 vehicles per week by late August and expects to reach 10,000 per week "sometime next year."
Shares rose 4.4 percent in after-hours trading to $313.99.