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…
Comments
Without its gonna take Elon-g time….
They need to sort out their production lines asap
Its unacceptable for such a big company to have such long lead times for new models like the Model 3
Tesla is a relatively small company compared to most auto manufacturers
Considering the amount of time and money you need to dump in order to make a car start production, it makes sense Tesla is facing some struggles. Compared to other manufacturers they have low margin for error, hopefully the model 3 will spike up sales and help Tesla grow
These guys have yet to actually make a profit…
Tesla has been a huge success. The Model 3 got more orders in about a month of its release than the 3 Series got in a full year. A startup car company will never turn a profit to begin with, give it time and they will.
Thanks but I don’t support tesla.
Fanboys downvoted your comment
Since Elon Musk actually give the man that’s destroyed his Tesla a free repair i do support them. Look it this way you use your Tesla for daily commute and use your weekends warriors race car on track.
Tesla may be in the red now, but all their initiatives point to them dominating car sales within 10 years. They’ll be just fine
If they want next year to be profitable, they will need to fix the quality control issues asap. With many current Tesla cars suffering from electrical glitches, and inconsistent panel gap sizes. If these aren’t fixed, the Model 3 may end up being one of those cars with so much potential but in the end fail.
I can’t stand electric cars anyway so I don’t really care
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