Tesla posts narrower than expected loss, says it’s on track to meet Model 3 production goals

FAN Editor

Tesla reported quarterly earnings and revenue that beat analysts’ expectations on Wednesday. The c

The company reported a net loss of $675.4 million. Tesla reported negative free cash flow of $276.7 million.

Here’s how the company did compared with what Wall Street expected:

  • Adjusted loss per share: $3.04 vs. $3.12 expected according to Thomson Reuters
  • Revenue: $3.29 billion vs. $3.28 billion expected according to Thomson Reuters

Tesla said it is on track to meet its goal of producing 5,000 Model 3 cars a week, executives said Wednesday. Tesla had originally planned to reach the target by the end of 2017, but has since moved the deadline twice.

“We continue to target weekly Model 3 production rates of 2,500 by the end of Q1,” the company said.

Producing the car on a mass market scale is widely considered crucial to Tesla’s ambition of becoming a major automaker. It is also considered one of the primary factors that have pushed Tesla’s share price far above those of its much larger and profitable U.S. competitors, Ford and GM.

As CNBC has reported, current and former employees say the company may have further trouble ramping up production, due in part to problems at Tesla’s Gigafactory near Reno, Nevada.

Tesla may also have to raise more capital in the near future. The company has gone to markets several times since its initial public offering in 2010. There are concerns over how Tesla returning to markets yet again would affect investor sentiment.

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