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/seat/leon-cupra/202143/seat-leon-cupra-r-st-abt-review-spicy-spanish-dish-gets-even-more-sizzle
SEAT Leon Cupra

SEAT Leon Cupra R ST Abt review

50 horsepower boost puts extra pep in the Leon Cupra’s already athletic step
23 Jan 2020
Visit/dodge/202135/police-spec-dodge-charger-given-1500bhp-widebody-kit-and-awd
Dodge

Dodge Charger given 1500bhp, widebody kit and AWD 

US-based Speedkore Performance works its magic for one-off creation
22 Jan 2020
Visit/volkswagen/golf-gti/22866/new-volkswagen-golf-gti-to-be-revealed-at-geneva-motor-show-plus-new
Volkswagen Golf GTI hatchback

New Volkswagen Golf GTI to be revealed at Geneva motor show – plus new insight on the next Golf R

2020 VW Golf GTI returns in eighth-generation form at this year’s Geneva motor show
20 Jan 2020
Visit/features/22907/hyundai-i30-fastback-n-versus-the-col-de-turini
Hyundai i30 N hatchback

Hyundai i30 Fastback N versus the Col de Turini

We take the Hyundai i30 Fastback N up the Col de Turini, a 31km stage of the Monte Carlo World Rally Championship
19 Jul 2019