Tesla Inc on Wednesday posted its worst-ever quarterly loss and said its Model 3 production target remains on track, expecting about 5,000 per week in about two months.
Tesla said it produced 2,270 Model 3s per week in the last week of April, up from 2,250 in the second week of the month.
In order to achieve this production rate, Tesla plans to take additional days of downtime during the second quarter.
Tesla reported a loss of US$709.6 million, or US$4.19 per share, for the first quarter ended March 31, compared with a loss of US$330.3 million, or US$2.04 per share, a year earlier.
Excluding items, Tesla had a loss of US$3.35 per share. Analysts had expected a loss of US$3.58 per share, according to Thomson Reuters I/B/E/S.
The company said it ended the quarter with US$3.2 billion in cash after spending US$655.7 million in quarterly capital expenses.
Shares of the Palo Alto, California-based company were up nearly 1 per cent at US$303 in extended trading.
The lack of Model 3 revenue has exacerbated Tesla’s cash burn as the company continues to spend on its assembly-line and prepares for new investments on multiple projects in the pipeline, such as the Model Y and its Gigafactory in Nevada.
Moody’s, which downgraded Tesla last month, has estimated that Tesla will burn about US$2 billion in cash this year.
© Thomson Reuters 2018