Technology

Posted on May 3, 2018 by staff

Record losses fail to dampen Tesla

Technology

Tesla has posted a record loss in the first quarter of the year and burned through $745.3m in cash – but the electric car giant says it will be profitable in the second half of 2018.

The company produced 2,270 cars in the last week of April and is currently striving to make 5,000 Model 3 cars every week to reach that goal.

Elon Musk’s firm posted a quarterly loss of almost $710m (£523m) for the three months to March and continued to burn through cash.

However, revenues increased by 26 per cent to $3.4bn.

Last month Tesla suspended production of its Model 3 in a planned shutdown and anticipates a total of 10 days of downtime during this quarter.

The company told investors on Wednesday that it “made a mistake by adding too much automation too quickly”.

On a call with financial analysts, Musk refused to answer questions about Tesla’s spending plans and the number of Model 3 reservations.

He said: “These questions are so dry. They’re killing me.”