Tesla will no longer reach its long-stated goal of producing 5,000 Model 3 cars per week in 2017, pushing that deadline back amid production hiccups and a massive $619 million quarterly loss. For the first quarter of fiscal 2018, the company plans on producing 5,000 Model 3 vehicles per week. A the time, Tesla wouldn't say much more beyond that i's "committed to the Chinese market" and interested in exploring manufacturing facilities around the world.
With the addition of Model 3 as a compelling, high-performance and long-range electric vehicle that is also affordable, the Tesla fleet should grow even faster in the years ahead.
The company also reported its biggest quarterly loss ever, sending shares down almost 5 percent after hours as the loss was bigger than analysts had expected.
Tesla's shares jumped slightly on Tuesday when Panasonic's CEO Kazuhiro Tsuga, a production partner, said the Model 3's delays came from problems in automating its battery production line and those problems have been addressed.
The company produced just 260 Model 3 cars in September, which was waaaaaaaaaay short of the 1,500 vehicles it had hoped to produce.
Tesla's negative free cash flow swelled to $1.4 billion, more than analysts had expected.
Thousands of Model 3s were supposed to have been sold by now. (NASDAQ:TSLA) by 2.4% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission.
Tesla's soaring stock has made the company the second-most valuable US automaker behind General Motors Co (GM.N), which had annual net profit of $9.4 billion in 2016.
The news wasn't entirely bad for Tesla, however, the carmaker reporting revenues for the third quarter of $2.98 billion, a record, and up from the consensus forecast of $2.95 billion.
Tesla warned that its adjusted gross margin would decline to about 15 percent due to a higher mix of lower-margin Model 3 deliveries in the fourth quarter, but then recover in the first quarter of 2018. However, investors didn't like what they saw and sent TSLA shares down almost 4% to $308 in after-hours trading Wednesday.
Panasonic sees batteries as central to its plan to almost double automotive business revenue to 2.5 trillion yen by the year through March 2022.