Tesla's Latest Quarterly Loss Won't Derail Model 3, Says Elon Musk, But More Money Would Be Good, Thanks

Tesla has posted another big quarterly loss, but 2017 could be the year it all turns around, with income actually well up.

The company is looking for investment to help it meet its deadlines on Model 3 production, which is due to start in July. Tesla, says Elon Musk, doesn’t need the money but as things stand it comes “very close to the edge.”

“We’re considering a number of options but I think it probably makes sense to raise capital to reduce risk.”

Tesla’s cash reserves are up $300 million to $3.4 billion. Big numbers, but it’s a big business. An increase in sales of Model S and Model X is to thank, but the loss of 69 cents per share was around 50 per cent worse than had been forecast. Huge investment in the Gigafactory side of things, plus the purchases of several complementary businesses like SolarCity, are to blame.

The Model 3 is still on track for July production, though, with the £30,000 Tesla set to help the company raise its global sales from about 95,000 this year to 500,000 in 2018.

First-year allocations of the car have reportedly sold out, with advance reservations eventually reaching 373,000. Surely Tesla has to turn a profit in the next 12 months…