Tesla reports record quarterly loss.

Tesla model 3

Tesla’s problems are bigger and bigger.

671 million dollars recorded a net loss of Tesla in the third quarter of 2017. During the nine months of this year, the American manufacturer of electric cars has already lost around $ 1.5 billion. It’s almost three times more than in the same period in 2016.

To reduce losses, Tesla has announced a 10 percent manufacturing cuts of Model S and Model X, and redirect resources to the production of the Model 3 in the fourth quarter of 2017. CEO Elon Musk said that by the end of the year rate of the company will bring “thousands” of cars, and by March 2018 production of the Model 3 will reach 5 thousand cars in a week.

The Tesla Model 3 can be bought for half the price the previous company cars. This series is key for the company’s transition from maker of luxury vehicles for the group, offering their products to a wider range of customers who applied for 500 thousand orders. Until the end of the third quarter, the company produced, however, only 260 Models 3 (compared with more than 1.5 million announced for this period). Not disclosed how many cars were created in October. Tesla kept the same time, the forecast is in line with that before the end of December the total number granted in the same-year-old cars of the series S and X will reach 100 thousand.

Earlier during the year, the optimistic announcements of the company contributed to the increase in prices by 53%, but since mid-September course Tesla falls. On Friday 27 November the quotations of the company fell by 2.5 per cent., when Evercore ISI downgraded its shares in respect of concerns regarding the possibility of a production Model 3, which followed from the reports of Reuters on the reduction by 40 percent. orders for parts from the Taiwanese company HOTA Industrial.

After the publication of the quarterly report, which shows record loss of course Tesla has reached the lowest level since mid-July 2017. In early October, analyst Goldman Sachs David Tamberrino predicted that next year Tesla will fall to 40 percent.

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