Electric car brand’s performance exceeded analysts’ predictions, giving confidence to shareholders amid production issues

Tesla posted a loss of £487,221,750 in the fourth quarter of 2017, its biggest loss yet and almost £400 million more than what it posted in the same period of 2016.

However, the brand’s performance exceeded analysts' forecasts, giving confidence to shareholders and backing Tesla's claims that it is on track to resolve recent production issues.

Tesla said it would meet its goal of producing 5000 Model 3s per week by the end of the second quarter. If it reaches this output, CEO Elon Musk said in an earnings call that he expects Tesla’s operating income to be in the black.

Musk said he is “cautiously optimistic” that the company will be profitable before the end of 2018, revealing that Tesla is still expecting to produce one million vehicles per year by 2020.

Last year, Model 3 production hit a roadblock due to supply issues relating to its batteries. Just 1,550 deliveries were made in the final three months of 2017 – far below the 4100 vehicles predicted by analysts.

Tesla has received more than 400,000 orders for the Model 3 so far, making it the company’s most popular vehicle by a big margin. However, both the Model S and Model X have seen growth in demand, achieving 15,200 and 13,120 deliveries respectively in the final quarter of last year.

Total fourth-quarter deliveries represented a 28% increase compared with the same period in 2016 and edged Tesla’s total for the period to 29,870 cars. This was broadly in line with industry expectations of 30,000 deliveries.

This year, the brand expects to substantially boost output and deliver 100,000 Model S and Model X cars. It will also announce its production plans for the Model Y within six months. Tesla predicts a threefold increase in sales for its energy company SolarCity, which offers the Powerwall battery pack to store energy in homes.

Last year, Tesla expanded its reach with 12 new stores, bringing the global tally up to 330 locations. It said that 338 new Superchargers were installed across the 12 months, leading to a total of 1128 stations so far.

Tesla has been back in the news this week, thanks to the rocket launch of Musk’s other company, SpaceX. The Falcon Heavy rocket was sent into space carrying Musk’s own Roadster as its payload. The launch was broadly a success, with the rocket and car entering a low Earth orbit before heading further out into the solar system. However, one of the three rocket segments, all of which are designed to return to Earth, crashed into the ocean on its descent.

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Comments
11

8 February 2018

Not sure that's right. In the last 3 months they've gone 350, 1100, 1900 so you'd expect 5,000 a month for March/April.

 5,000 a week by end of second quarter sounds a bit high but either way they're going to  double their previous year's car output.

Sounds a bit ambitious but necessary as Jaguar and Audi will chomping at their ankles, get that Model Y ready!

typos1 - Just can’t respect opinion

8 February 2018

You are correct - it's per week. Good spot!

8 February 2018

Yes Elon, release another teaser for all electric Tesla Helicopter and a Tesla motor bike coming out of it which does 0-62 in 0.5 sec and all is good. I'll believe you when I see it. 

If you don't look back at your car after you parked it, you own the wrong car.

8 February 2018
The company has an extraordinarily poor record of hitting production forecasts, or any forecasts for that matter.

Why does anyone believe it now?

I'm a little perplexed as to what or who is funding these relentless losses?

8 February 2018

Bloody typical.  xxxx points out an error and it gets acknowledged by the writer. I point out the photo of the wrong 250 GTO in the article about the 12 most expensive cars auctioned, they change the photo but don’t acknowledge or even remove my comment, so I look stupid.

8 February 2018
This is a laughably terrible website, very poorly operated.

I think most of us only gnash our teeth because we care more than we should, and only wish Autocar well, but it is relentlessly unrewarding.

8 February 2018
275not599 wrote:

Bloody typical.  xxxx points out an error and it gets acknowledged by the writer. I point out the photo of the wrong 250 GTO in the article about the 12 most expensive cars auctioned, they change the photo but don’t acknowledge or even remove my comment, so I look stupid.

Same thing happened to me with a Peugeot electrification article. I cut and pasted an erroneous sentence, they corrected the article, then another poster called me a smart arse for reading it wrong and questioning it.

8 February 2018

2019. At earnest is my prediction.

 

 

/EX

8 February 2018

Looks like Autocar's Hilton Holloway will be chocking on humble pie with these results. Mega growth. Smaller than expected losses.  Slower cash burn.  Competitive product roadmap. 

Lotus Evora 400

9 February 2018

If you can afford to send a Rocket into space with a Car I side as a stunt, that would cost.....?,about the same as your quarterly loss Mr Musk.....?

Peter Cavellini.

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