Tesla’s mounting losses and Model 3 delays bring it back to Earth as Tesla Inc. displayed a record quarterly net loss of $675 million in the fourth quarter, up from a net loss of $121 million in the same period a year ago.
The Palo Alto, California-based automaker is grappling to achieve production targets for its premiere mass market car the Model 3 sedan. It is being extravagant on future vehicles involving a semi which is undergoing production next year.
Tesla lost $1.96 billion for the entire year an accomplishment for the company and three times its loss of $675 million in 2016. Tesla has not being able to make an annual profit since it has gone public in 2010. Tesla’s regulated fourth-quarter loss of $3.04 per share was leading of Wall Street’s estimated loss of $3.15 per share, according to analysts polled by FactSet. The regulated loss banishes one time disbursement involving stock based compensation. Proceed for the quarter was $3.3 billion, which was in line with analysts’ forecasts.
Tesla’s total revenue for 2017 was $11.8 billion, which was also in line with analysts’ forecasts. Musk is a crafty marketer and the red ink may not excite the investors. The company’s shares jumped 3 percent to close at $345 Wednesday after Space X productively instigated its Falcon Heavy rocket with Musk’s cherry red Roadster as its cargo. The convertible with a lookalike in the spacesuit at its steering is now progressing towards an asteroid belt between Mars and Jupiter. Tesla’s shares also are in stratosphere, up 8 percent from the beginning of this year.