Tesla Says Model 3 On Track For Volume Production By September
Tesla Inc. posted a smaller quarterly loss and said its mass-market Model 3 sedan was on track for volume production by September.
The electric car maker said it expected to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017.
The company said it planned to invest between $2 billion and $2.5 billion in capital expenditures ahead of the start of Model 3 production.
Tesla’s shares rose 1.6% to $277.89 after the bell on Wednesday.
The company has been investing heavily on production of its latest models and in its $5 billion gigafactory, which makes lithium-ion battery cells in Nevada.
Given Tesla’s elevated stock price, many analysts believe Tesla will seek a capital raise in coming months.
The company, led by billionaire entrepreneur Elon Musk, is betting big on Model 3 to help meet its goal of producing 500,000 cars annually in 2018.
Total operating costs rose 46.6% to $702 million in the latest quarter.
The company’s results include those of SolarCity, which was acquired last year. Uncertainty by analysts on how Tesla would model SolarCity into its results resulted in a wide range of estimates.
Tesla’s net loss attributable to common shareholders narrowed to $121.3 million, or 78 cents per share, for the fourth quarter ended Dec. 31 from $320.4 million, or $2.44 per share, a year earlier.
Revenue rose 88% to $2.28 billion.
Up to Wednesday’s close, Tesla’s stock had risen 53.9% in the last twelve months.