Tesla shares ended higher in the US Wednesday, but are in the red in after-hours activity following its latest earnings results showed it posted its largest ever loss in the final three months of 2017. Despite that news, Tesla’s CEO said the company is on track to move into profit sometime in 2018.
Tesla shares closed 3.30% higher at $345.00 in the US, Wednesday. Post-market activity has the Tesla stock some 0.4% in the red.
Tesla profits slump
Tesla announced that revenues across 2017 rose 55% from 2016 to $11.8 billion. However, huge spending on its three new models in the final three months of 2017, among other investments, saw the company deliver a $675.4 million operating income loss in the fourth quarter.
That was the largest quarterly loss the electric car maker has recorded since it was founded in 2003.
“At some point in 2018, we expect to begin generating positive quarterly operating income on a sustained basis,” Tesla’s CEO Elon Musk said in the company’s earnings press release.
“With the planned ramp of both Model 3 and our energy storage products, our rate of revenue growth this year is poised to significantly exceed last year’s growth rate,” Musk added.
Planning for an electric car future
Tesla is continuing to plough money into the production of electric cars people can really on and want to buy.
The car maker opened 12 new electric store and service locations in the fourth quarter and now have 330 of these worldwide. The number of supercharger stations, meanwhile, rose to 1,128 after opening 338 new locations during 2017, Tesla said.
Production of Tesla’s Model 3, which has been slow and hit with some problems early on, is expected to hit 2,500 per week by the end of Q1, before rising to 5,000 per week in Q2.
“This year, we are starting a new chapter of our journey,” Musk said. “This is the year when we believe we can achieve true cost parity - producing a premium EV like the Model 3 will be no more expensive than producing an ICE vehicle.”