After months of delays and production issues, it seems that Tesla is finally on track for its new Model 3’s production schedule. That said, the company also recently posted its worst-ever quarterly losses.
Tesla posted a loss of $709.6 million for the first quarter of 2018. That equates to $4.19 per share, according to Reuters. The publication went on to note that Elon Musk’s car company had $3.2 billion in cash and spent $655.7 million at the end of the quarter. This loss comes at a time when the company would like to show it can be profitable.
Tesla Model 3 Production Should Meet Company Goals Soon
While the large quarterly loss doesn’t seem to bode well, Tesla appears to be on track to hit its production goals for the Model 3. Tesla reported that the company produced 2,270 Model 3s in the last week of April. That is an increase of 20 models from the second week of April. This also marks the third straight week of weekly production of over 2,000 model. That’s still a ways away from the company’s weekly goal, but an improvement nonetheless.
"“Steady, a word not often used in describing Tesla, is becoming more of a reality as management continues to chip away at its 5,000 units per week Model 3 production goal,” wrote Consumer Edge analyst Jamie Albertine, quoted in Reuters."
Tesla Model 3 Production Not the Only Concern for Tesla
The continued ramp-up of the Model 3 production should alleviate some investor and analyst concerns. However, the Model 3 isn’t the only hurdle Tesla has to overcome. It has multiple new models in the works, including the Model Y crossover. The Autopilot system on the cars has also come under fire after a Tesla driver died while using the imperfect system.
Tesla CEO Elon Musk tweeted in April that his car company would turn things around by quarter three and four of 2018. He also said Tesla wouldn’t need to raise money, which many publications, like The Economist, suggested.
With all of the issues surrounding the company, it will be interesting to see if and how Musk manages to achieve his goals of becoming profitable.