Tesla Reports Huge Loss But Assures Everyone That Model 3 Is Coming

Tesla has successfully managed to send a roadster into space and it is headed to the asteroid belt right now. However, it is having problems closer to home with the production of the Model 3 cars. The higher-end cars were produced in record numbers in the fourth quarter of 2017 but the company has reported a huge loss due to the production of Model 3 lagging behind.

Tesla has posted a huge loss of $675.4 million in the fourth quarter of 2017. This is more than five times of the $121.4 million it lost in the same quarter of 2016. Tesla has had a very busy year. It revelled Tesla Semi truck to revolutionize trucking along the next-generation Roadster. It began rolling out solar tiles for the customers and completed the world’s biggest battery well before schedule.

(Source: New Atlas)

There has also been an increase in the production of Model S and Model X cars. 28,425 vehicles were shipped in the fourth quarter which is a 28 % increase on the same period in 2016. Overall the vehicle deliveries have grown by 35 % as compared to last year and has been the reason for 36% increase in automotive revenue according to Tesla.

However, all eyes are still on the Model 3, Tesla’s debut sedan for the mass market. Hundreds of thousands of people pre-ordered the vehicle which the company had planned to dispatch 20,000 per month by December but it was only able to ship 1,542 vehicles in the fourth quarter.

(Source: New Atlas)

The company is hopeful that it will be able to boost production from here and has targetted a weekly production of 2,500 by the end of first quarter and the number is expected to double by the end of the second quarter. “If we can send a Roadster to the asteroid belt, we can probably solve Model 3 production,” said CEO Elon Musk during an investors earnings call.

Let’s wait and see if the company manages to reach its target this time around.

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