Tesla shares closed marginally higher in the US Wednesday but slumped in after-hours activity as the electric car maker reported a record quarterly loss in the first three months of the year.
The US business also stated that while it expects to make a profit in the second half of this year, that remains reliant on more than doubling the current output of its Model 3.
Tesla shares ended the US Wednesday trading session 0.41% higher at $301.115. However, the stock slid in after-hours activity when the company’s first-quarter earnings were published.
Tesla’s earnings report showed a number of important details. The innovative car manufacturer posted a loss of $709.6 million n the first quarter of 2018. That came as it burned through $745.3 million to ramp up production of its Model 3 among its other commitments.
The report also revealed Tesla had produced 2,270 Model 3’s in the April 3rd week. That’s still less than half the 5,000 per week output of the vehicle the company needs to achieve to move into profit.
“We made significant progress on the Model 3 ramp in the second half of Q1, and the momentum continued into early Q2,” the Tesla earnings update read.
“If we execute according to our plans, we will at least achieve positive net income excluding non-cash stock-based compensation in Q3 and Q4 and we expect to also achieve full GAAP profitability in each of these quarters,” Tesla said.
Model 3 production and demand
Tesla has experienced a number of problems with the increase in production of the Model 3. Those problems have been put down to introducing too much automation too quickly. But, while it has managed to raise the level of production, its ability to hit the magic 5,000 per week number is still in some doubt.
However, when asked about reservation numbers for the model 3 in the earnings call Wednesday, Tesla’s CEO Elon Musk refused to answer.
“We're gonna go to YouTube. Sorry. These questions are so dry. They're killing me,” Musk said on the call.