Tesla Loses $619m In Disappointing Financial Quarter

1y ago

52.7K

Tesla has spent the last couple weeks responding to their well-publicized production woes by simply citing "bottlenecks" with Model 3 production. The company is deep into what Elon Musk has repeatedly called "Model 3 production hell," and it's hitting the company pretty hard.

Tesla posted record losses of around $619 million in Q3 2017, the worst financial quarter since the company's inception in 2003. This news comes hot on the heels of reports that the company actively tried to quash unionization efforts among employees; the company also just got done firing hundreds of workers after performance reviews.

Tesla's financial future is riding entirely on the success of the Model 3, but the company's still struggling to produce the cars in any meaningful quantity. Tesla delivered 50 or so cars at the launch event over the summer, and they have been trickling out to customers since then, but they only managed to produce 260 total Model 3s over all of Q3; this is under a fifth of the company's Q3 production target of 1500.

If Tesla can get more Model 3s built and better stick to its infamous S-curve production scale, it will likely encourage more people to buy not only the cars, but also invest in Tesla's solar infrastructure and home batteries. As it stands, however, it's doubtful that Tesla will be able to meet many of their goals before next summer, when the highest quantity of Model 3s are projected to be delivered.

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