The company has yet to turn a profit but this quarter's loss is more than twice as high as in the second quarter a year ago.
During the same quarter a year-ago, Tesla saw its Q2 revenue hit $2.79 billion while posting a loss of $1.33 per share.
The electric auto maker said it will continue to ramp up production of the Model 3, forecasting a weekly rate of 6,000 vehicles by late August.
In its eight years as a public company Tesla has turned a profit in only two quarters.
Several analysts had predicted a widening loss for Tesla.
"I'd like to apologize for being impolite on the prior call".
During the second quarter, Tesla laid off 9 percent of its workforce as it worked toward Musk's promise of making money. And yet Tesla's stock is up 5% in after-hours trades. With low cash reserves, investors have anxious that Tesla would need to borrow more money to keep the company afloat.
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Bloomberg News reported earlier Wednesday that the company would look to China to at least partially fund the US$5 billion cost, citing a person familiar with the plans, who asked not to be identified as the matter is private.
Musk also stated that Tesla was hiring video game developers to build games which integrate with the Tesla's touchscreen, the driver's smartphone, and the vehicle itself.
Tesla ended the second quarter with $2.78 billion in cash after spending $610 million in quarterly capital expenses. He also said he wants to link "Pole Position" to an actual auto steering wheel so players can use it as a controller - while stationary, of course.
That's less of a burn than analysts expected, and it means Tesla is under less pressure to seek more financing. Tesla projected total 2018 capital spending at just below $US2.5 billion.
Revenue jumped 44% to $4 billion, beating analysts' forecast of $3.92 billion.
Tesla also said it was working on a new version of its Autopilot semi-autonomous software that would have greater safety features.