Tesla posts £468m loss as Model 3 production woes deepen

Tesla lost $619m (£468m) in Q3 of 2017 and built only 260 of its 1500 Model 3 production target

Tesla’s ambitions to crack the mass market with its Model 3 hatch are running low on energy as production delays have resulted in Elon Musk’s car company posting record losses for Q3 of 2017, racking up $619m (£468m) in the three months to the end of September.

The electric car firm confirmed it had produced just 260 examples of Model 3 during the third quarter, less than 20 per of the 1500 examples it said it would build. Tesla has also said it will now push back its target of producing 5,000 cars a week from December 2017 to ‘early 2018.’

Subscribe to evo magazine

evo is 21 and to celebrate, we're returning to 1998 prices! Subscribe now to SAVE 39% on the shop price and get evo for its original cover price of £3.00 an issue, plus get a FREE gift worth £25!

> Tesla Model 3 - full details on the new EV

In a statement, the company said that it was continuing to make significant progress each week in the Model 3’s production bottlenecks. But it did also say “the nature of manufacturing challenges during a ramp (up) such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear.”

Advertisement
Advertisement - Article continues below

One of the main reasons given for the Model 3’s production constraints was the slow down in progress on its Nevada Gigafactory and the need for the battery production process to be redesigned. 

> Tesla Model S review

Naturally Elon Musk is upbeat and “optimistic, because it’s clear what changes need to be made”, but Model 3 production is not Telsa’s only concern. While revenues rose in the region of 30 per cent during the last 12 months to around $3bn, the company’s cash burn continues to make Formula 1 look like a pocket money sport.

With a further $1bn of investment expected to be needed during the last quarter alone, 2017’s total investment will be at least $2bn. With delays in revenues due to the Model 3’s delay Tesla’s cash demands heading into 2018 could be greater still. 

Advertisement

Recommended

Visit/tesla/201982/tesla-cybertruck-unveiled-no-it-really-does-look-like-that
Tesla

Tesla Cybertruck unveiled – no, it really does look like that

22 Nov 2019
Visit/tesla/17581/tesla-model-3-specs-prices-and-full-details-on-the-all-electric-compact-exec
Tesla

Tesla Model 3: specs, prices and full detail

1 May 2019
Visit/tesla/16777/tesla-unveils-model-y-mid-sized-suv-to-rival-mercedes-eqc
Tesla

Tesla unveils Model Y mid-sized SUV to rival Mercedes EQC

15 Mar 2019
Advertisement

Most Popular

Visit/audi/202047/audi-rs-25th-anniversary-package-pays-homage-to-the-rs2-avant
Audi

Audi RS 25th Anniversary package pays homage to the RS2 Avant 

Special features for RS range mark a quarter century of Audi’s performance division
13 Dec 2019
Visit/mclaren/201626/2020-mclaren-elva-further-details-of-next-ultimate-series-supercar
McLaren

2020 McLaren Elva – further details of next Ultimate Series supercar

No roof? No worries… The McLaren Elva will be the ultimate sun-seeking supercar
12 Dec 2019
Visit/evo-car-of-the-year/202042/ecoty-2019-evo-car-of-the-year-preview
evo Car of the Year

eCoty 2019: evo Car of the Year preview

Our annual evo Car of the Year test is coming, in print and online
13 Dec 2019
Visit/hyundai/i30-n-hatchback/201775/hyundai-i30-n-versus-hyundai-i30-tcr
Hyundai i30 N hatchback

Hyundai i30 N versus Hyundai i30 TCR

Can Dickie Meaden beat Steve Sutcliffe in a straight(ish) race? We sent them to the Circuit Nuvolari with a pair of Hyundai i30 Ns to find out.
20 Sep 2019