TESLA Posts Monster Third Quarter Loss


 
 
06:59 11/01/2017

Tesla, Inc. TSLA  on Wednesday reported the largest quarterly loss in its history and said it was cutting production on two of its vehicle models. In its third-quarter earnings report, the company said it would cut production of its Model S and Model X vehicles to redeploy resources toward the Model 3. In October, CEO Elon Musk described the newest vehicle as being "deep in production hell."

The company said it planned to produce "about 10% fewer" units of its Model S and Model X models in the fourth quarter and reallocate resources to the Model 3, its newest. Tesla expects to hit a Model 3 production rate of 5,000 vehicles a week by late in the first quarter of 2018.



Last month, Tesla reported it delivered 26,150 vehicles in the third quarter, a 4.5 percent rise on the same period of 2016. TSLA  pushed back its target for volume production on its new Model 3 sedan by about three months, saying that while progress fixing bottlenecks was made, it was difficult to predict how long it would take for all production issues to be fixed.



Tesla posted a net loss of $619.4 million, or $3.70 per share, for the third quarter ended Sept. 30 compared with a profit of $21.9 million, or 14 cents per share, a year earlier. Revenue rose 30 percent to $2.98 billion. Excluding items, the company lost $2.92 per share.

The company said it had $3.53 billion in cash and cash-equivalents as of Sept. 30, compared with $3.04 billion at the end of the second quarter.



Tesla's long-term viability depends on the Model 3, its new sedan that starts at $35,000, about half the price of its flagship Model S.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read