Automaker, energy storage company and solar panel manufacturer, Tesla, has continued to disappoint investors as expected losses widened and manufacturing of its Model 3 sedan, its first mass market electric sedan, slowed due to process complications.
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In 3Q 2017, Tesla delivered revenue of US$2.98 billion slightly outperforming consensus analysts’ forecasts of US$2.95 billion but its loss per share came in at US$2.92, higher than the US$2.29 expected by Wall Street. In a letter to shareholders, Tesla warned that it expects to achieve a production rate of 5,000 Model 3 cars per week late in the first quarter of 2018. The company previously said it hoped to achieve that number by the end of this year.
Tesla stated that the high degree of automation on the Model 3 production line has proven challenging, but they’ve made progress in resolving early bottlenecks and there remain no fundamental problems with the supply chain or the production processes. Industry analysts do not believe that the delays will dampen demand for the vehicle. Tesla also said that the Model S and Model X are on pace for around 100,000 delivers in 2017, an increase of 30% on last year. Tesla stated that it would produce 10% less of both models in 4Q 2017 as more resources shift toward the Model 3.
Tesla CEO, Elon Musk also sprung a surprise on the world, using the launch of a new electric semi-truck to announce the world’s fastest production car, a new Tesla Roadster. Musk showed off a prototype of the new sportscar, a convertible he said will go from zero to 60 mph in 1.9 seconds. The car will be available in 2020 for US$200,000.