Tesla Inc. on Wednesday dragooned back its target for volume production on its new Model 3 sedan by about three months, speaking that while progress fixing bottlenecks was made, it was difficult to portend how long it would take for all production issues to be fixed.
The company also revealed its biggest quarterly loss ever, below analysts’ expectations, sending cuts down nearly 5 per cent after hours after falling 3 per cent in regular trade.
Tesla, led by Silicon Valley entrepreneur Elon Musk, rephrased it now expects to build 5,000 Model 3s per week by late in the first shelter of 2018 from its original target date of December.
Battery drama issue
Tesla said the main constraint it currently faced was within its battery module meeting line, where the company had to redesign part of the production process.
Money-losing Tesla’s long-term viability depends on the Pose in 3, its new sedan that starts at $35,000, about half the payment of its flagship Model S.
The niche carmaker has made inroads among grandeur car buyers with the advanced technology and innovative design in its Model S sedan and Form X SUV. Tesla plans to produce 500,000 vehicles in 2018, mostly Fashion 3s, a six-fold increase over 2016 levels.
But the Palo Alto, California-based company sorted just 260 Model 3 sedans in the third quarter due to «production bottlenecks,» it told. It had planned to build more than 1,500.
Model 3 production delays express postponed sales and exacerbate the company’s cash burn, made worse as Tesla get ones just deserts to fix current manufacturing issues. The problems could also worry the on the other side of 500,000 customers who have put down a refundable deposit on the car.
Tesla stationed a net loss of $619.4 million US, or $3.70 per share, for the third quarter limited Sept. 30 compared with a profit of $21.9 million US, or 14 cents per interest, a year earlier.
Revenue rose 30 per cent to $2.98 billion US. Excluding ingredients, the company lost $2.92 per share.
The company said it had $3.53 billion US in specie and cash-equivalents as of Sept. 30, compared with $3.04 billion US at the end of the alternate quarter.
Last month, Tesla reported it delivered 26,150 instruments in the third quarter, a 4.5 per cent rise on the same period of 2016, but annexed that «production bottlenecks» had left the company behind its planned ramp-up for the $35,000 US Fashion 3.