Tesla Reports Record Loss In Last Quarter

Posted: Feb 8 2018, 7:45am CST | by , in News | Cars & Vehicles

 
Tesla Reports Record Loss in Last Quarter

Tesla Motors experiences Record Low in Quarterly Profits But it says Model 3 Production is on Target

Tesla Motors had its heads decide that the CEO, Elon Musk’s revised targets for manufacturing would be followed. Yet the quarterly revenues have been dismally low which is indeed quite a blow to the otherwise successful company’s reputation.

All this goes with the proviso that this year, spending would be greater than usual to cover this loss. The shares of the firm in the stock market had dipped by 0.3%.

Annually, billions of dollars worth of Tesla Model 3’s are sold. This car has a price tag of $35,000. That is almost half the cost price of the Model S.

During the fourth quarter, the overall reservations for the new model were pretty much on a par. There has of course been a procrastination in production.

About 1550 deliveries have been made. That is much below the target which was 4100 cars. The big loss was still absorbed by the company and all is not lost just yet.

There is hope for Tesla and Elon Musk. There could however be more delays in the future. Tesla had spent $787 million during the fourth quarter. Also this year the amount of capital invested in the new model would be a bit more than expected.

The as yet unveiled Tesla Semi was also slated to come out soon. As for the Model Y SUV, it too was a vehicle that was looked forward to by the clientele with eager anticipation.

With cash levels hitting rock bottom, Tesla definitely needs to lift itself up by its bootstraps. First comes finance and all the rest depends on cash flow after all.

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