- Tesla shares are down 6% on Thursday after the company reported a bigger loss than analysts expected.
- Production bottlenecks still plague the Model 3, but a fix could be coming soon.
- Watch Tesla’s stock move in real time here…
Tesla’s stock is getting clobbered after the company reported its largest-ever quarterly loss on Wednesday.
The shares are down 5.98% to $US301.89 in early trading Thursday.
Tesla reported an adjusted loss of $US2.92 per share compared to the $US2.23 Wall Street expected. It reported revenues of $US2.98 billion, which was higher than the $US2.39 billion expected. Tesla burned through $US1.4 billion in cash in the quarter, compared to expectations of $US1.2 billion, according to data from Bloomberg.
The company has been way behind in its Model 3 production goals due to bottlenecks at the company’s Gigafactory in Nevada. Its previous production goal of 5,000 Model 3 vehicles a week in December of this year is now the company’s goal for late in the first quarter of next year.
The carmaker has faced troubles in the battery production area of its factory, which resulted in the production of just 260 Model 3s in the third quarter. Tesla said it has recently figured out the problem and is working on a fix which should speed up production.
Tesla said it delivered its 250,000th car in the third-quarter and said it expects to deliver 100,000 Model S and Model X cars in 2017. If hit, it would be an increase of 30% compared to 2016 for Tesla’s two higher-priced models.
The stock is up 40.51% this year.