Login

Tesla Reports Biggest-Ever Quarterly Loss

Tesla posted a net loss of $619.4 million, or $3.70 per share, for the third quarter ended September 30 compared to a profit of $21.9 million, or 14 cents per share, a year earlier.
Calendar-icon

By Reuters

clock-icon

1 mins read

Calendar-icon

Published on November 2, 2017

Follow us on

google-news-iconWhatsapp-icon
Story

Highlights

    Tesla Inc racked up a $619 million loss in the third quarter, its biggest-ever, driving its shares sharply lower as the electric-car maker spends to speed up production of its more affordable Model 3 sedan. The company, led by Silicon Valley star Elon Musk, also confirmed it had missed its Model 3 production goal for the third quarter, producing only 260 vehicles compared to an earlier estimate of 1,500. Its shares fell 5.4 percent in afterhours trading. The company said it had $3.53 billion in cash and cash-equivalents as of Sept. 30, compared to $3.04 billion at the end of the second quarter.

    Also Read: Tesla To Build Manufacturing Plant In China

    Tesla said last month it delivered 26,150 vehicles in the third quarter, a 4.5 percent rise on the same period of 2016, but added that "production bottlenecks" had left the company behind its planned ramp-up for the $35,000 Model 3.

    On Wednesday it said it now hoped to achieve a production rate of 5,000 per week by the end of the first quarter of next year, pushed back from the end of this year.

    Also Read: Tesla To Recall 11,000 Model X SUVs Due To Seat Issue

    It said automotive gross margin, which excludes the sale of zero emission vehicle (ZEV) credits, fell to 18.7 percent from 25 percent last year. Analysts on average had expected margins of 18.4 percent, according to FactSet.

    Tesla posted a net loss of $619.4 million, or $3.70 per share, for the third quarter ended Sept. 30 compared to 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.

    (Reporting by Arjun Panchadar in Bengaluru; Editing by Patrick Graham)

    © Thomson Reuters 2017

    (This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

    Stay updated with automotive news and reviews right at your fingertips through carandbike.com's WhatsApp Channel.

    Great Deals on Used Cars

    View All Used Cars

    Explore More