Tesla sees record quarterly loss

Tesla sees record quarterly loss

Tesla sees record quarterly loss

Tesla expects to hit a Model 3 production rate of 5,000 vehicles per week by late Q1 2018.

Musk predicted the company would reach 5,000 Model 3 vehicles per week near the end of the first quarter of 2018 - several months later than originally predicted. In addition to redirecting some of Tesla's best engineering talent to the factory, Musk said he is personally attacking the problem alongside his employees. The trick is to make the process more automated, which will allow the company to produce more vehicles at a lower cost than more traditional automakers.

Tesla, Inc. has a consensus hold rating from 23 Wall Street analysts, and the number of shares now sold short amount to at least 22.09% of shares outstanding.

"We believe the Model 3 ramp is one to two months behind schedule, but are not concerned as TSLA successfully ramped production of the Model S and Model X, which are more complicated vehicles, and we are confident TSLA will achieve its production targets over the intermediate term", declared Ben Kallo, an analyst at Baird.

The company also reported its biggest quarterly loss ever, sending shares down almost 5 percent after hours as the loss was bigger than analysts had expected.

"The Model 3 production process will be vastly more automated than the production process of Model S, Model X or nearly any other auto on the market today, and bringing this level of automation online is simply challenging in the early stages of the ramp", Tesla said. But as Model 3 production sputters, Tesla reported a loss bigger than many analysts projected.

"Model 3 reservation holders may not be thrilled about the fact that they have to wait longer than they thought for their vehicle, but it likely won't cause them to cancel their orders en masse", Caldwell said.

In Q3, we delivered the 250,000th Tesla. However, investors didn't like what they saw and sent TSLA shares down almost 4% to $308 in after-hours trading Wednesday. Following the completion of the sale, the vice president now owns 1,736 shares of the company's stock, valued at $589,354.64.

Revenue was a stronger point for the automotive company, coming in at $2.98 billion, ahead of the $2.39 billion that analysts called for.

On the ratings front, Tesla stock has been the subject of a number of recent research reports. Revenue was $2.98 billion for the three-month period, up from roughly $2.30 billion a year ago.

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