Tesla posted a record loss of £523 million in the first three months of 2018 – but company chief Elon Musk insists the firm is on course to become profitable by the end of the year.
The American firm’s first quarter loss was more than double the £243m the firm lost in the same period a year ago. Tesla generated £2.5bn in revenue between January and March – a year-on-year rise of 26% – but continued to fall below its own production targets for the Model 3.
Tesla produced 2270 Model 3s per week in April, below its revised target of 2500. The firm had initially planned to produce 5000 cars a week by the end of 2017, but has hit trouble scaling up production, and has suspended work in its California factory on several occasions in a bid to cure “production bottlenecks".
In an email to staff, Musk said Tesla was ready to be profitable, if it reduced capital expenditure and hit its target of producing 5000 models a week by the end of June.
Shares in Tesla Inc remained stable following the announcement of the results, but then fell around five per cent, according to Reuters - wiping around £1.47bn from the value of the company – during a media conference call given by Musk.
When asked what percentage of customers who had reserved a Model 3 had configured options for their cars – a signal of how much profit the firm could make on each vehicle – Musk responded: “These questions are so dry. They’re killing me.”