Tesla today reported the company’s largest quarterly loss ever of $619.4 million. The larger-than-expected earnings loss comes with news that the electric automaker is pushing back its production forecast for the Model 3 sedan by nearly three months.
Within the third quarter Tesla says it sold 26,150 vehicles, which generated revenues of $2.98 billion, an increase of 30 percent over the same period in 2016. Vehicle sales for the company were up 4.5 percent over 2016, buy Tesla noted that “production bottlenecks” delayed scheduled deliveries of its new Model 3 during the reporting period.
Adding to the delay problem with the Model 3, Tesla also disclosed that it plans to produce 5,000 Model 3 units per week by “the end of the first quarter” of next year. Originally, Tesla CEO Elon Musk planned to produce that many per week by December of this year.
Tesla added that it has been difficult to project how long it will take to resolve some of the production bottlenecks the company faces. According to the company, one of the primary production problems has been associated with the battery module assembly line, which the company has had to completely redesign parts of this particular production process since the car’s launch.
By the end of Sept. Tesla had produced only 260 Model 3 sedans. The company’s original production forecast called for at least 1,500 to be produced by that date.
Tesla is now forecasting it will produce 500,000 vehicles in 2018.
Today’s earning results and news of further delays in Model 3 production have led the company’s stock to slide.