Electric car manufacturer, Tesla Inc, reported a $675.4 million loss in its fourth quarter, or $4.01 a share, on revenue of $3.29 billion. The drop marks the company’s biggest quarterly loss to date.
According to the company, the poor results are largely attributed to high production costs of its long-awaited Model 3 electric sedan.
On Wednesday, Tesla Inc revealed a 36 percent increase in revenue over the same period in 2016. This was linked to high delivery numbers of the luxury electric Model S sedan and Model X crossover.
As for automotive products, revenue increased to $2.7 billion for the final quarter of last year, topping its $1.99 billion mark in the 2016 quarter.
Tesla also saw a 6 percent increase in capital from its energy storage products, including batteries and storage systems.
The Palo Alto-based company’s stock has risen over the last year’s $257 a share to $345 on Wednesday.
Tesla claims it’s still on track for a 2.500-vehicle weekly production rate of the Model 3 by the end of the first quarter, and a 5 thousand-vehicle rate by the end of Q2. The announcement was reiterated a couple of weeks ago, apparently maintaining a firm goal for 2018. Tesla Inc had at one time planned to roll out 5 thousand units per week by the end of the fourth quarter, however, those estimates were trimmed due to several production challenges for the Model 3 electric sedan. A notable production issue involves the car’s battery.
Tesla CEO, Elon Musk, said on an earnings call that the company has made considerable progress towards fixing its battery module output issues. According to Musk, an automated system for two of its module production zones was nearing completion.
The company claims that its operating income will “turn sustainably positive at some point in 2018” with Musk expressing optimism for Tesla’s profitability on a GAAP( generally accepted accounting principles) basis.
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