Tesla announces record £523m loss

EV company reveals record losses, but claims the business will be profitable later this year

Tesla Model 3 - front static

Tesla has reported a record $710m (£523m) net loss in the three months to March, with the company blaming on-going Model 3 production issues.

However, Tesla CEO Elon Musk has insisted the company can turn its woes around and post profits later this year – possibly as soon Q3 2018.

Best electric cars on sale 2018

“It’s high time we became profitable,” said Musk. “The truth is you’re not a real company until you are [profitable]. That’s our focus right now.”

In 2016, the company built a total of 101,312 vehicles. But in recent months it has fallen short on production of its ‘mass market’ Model 3 – a BMW i3-rivalling small electric car with a range of more than 300 miles.

In April the company was forced to suspend Model 3 production completely, which impacted heavily on the 500,000-strong order bank. Just 9,800 Model 3s were assembled between January and March 2018.

The company has said it wants to build 5,000 Model 3s per week within the next two months, however, which Musk insists would put the company back in the black. The Tesla boss claimed the business will be profitable by the second half of this year.

Musk realised Tesla’s mistakes and said: “We made the mistake of adding too much automation too quickly”.

The CEO’s associated SpaceX company recently sent a Cherry Red Tesla Roadster into space, while also conducting a successful test of the Falcon Heavy Rocket. In response to this, Musk said: “If we can send a Roadster to the Asteroid Belt we can probably solve Model 3 production.”

Despite the current turmoil, Tesla plans to also introduce a smaller Model Y SUV from 2020.

Read our review of the Tesla Model 3

Recommended

Tesla applies for UK electricity provider licence
Electric cars

Tesla applies for UK electricity provider licence

The American EV manufacturer is preparing to build a new UK energy company, based on the battery technology used in its electric vehicles
4 May 2020
Tesla is the most valuable US car maker of all time
Tesla Model 3 - Front Tracking
Tesla

Tesla is the most valuable US car maker of all time

Tesla's market capitalisation of $81.39bn sees it surpass Ford’s record from 1999, now worth nearly as much as Ford and GM combined
8 Jan 2020
“Tesla is now the hunted instead of the hunter”
Tesla

“Tesla is now the hunted instead of the hunter”

Chief reviewer Sean Carson thinks Tesla can’t afford to rest on its laurels at the top of the electric car tree with the likes of Audi, BMW and Merced…
6 Aug 2020
Tesla Autopilot slammed as “especially misleading” by UK safety experts
Tesla

Tesla Autopilot slammed as “especially misleading” by UK safety experts

Following a criticism by a German court that Tesla’s driver assistance systems are marketed incorrectly, UK safety experts express similar concerns
15 Jul 2020

Most Popular

New 2021 BMW M3 launched with huge grille and 503bhp
BMW 3 Series M3 Coupe

New 2021 BMW M3 launched with huge grille and 503bhp

The new sixth-generation BMW M3 Competition saloon gets a 503bhp straight-six engine and four-wheel-drive
22 Sep 2020
New 2020 Volkswagen ID.4 electric SUV revealed with up to 323 miles of range
Volkswagen ID.4

New 2020 Volkswagen ID.4 electric SUV revealed with up to 323 miles of range

The new Tiguan-sized Volkswagen ID.4 electric SUV becomes VW’s second ID. model, rivalling the Tesla Model Y
23 Sep 2020
New Range Rover Velar PHEV launched with 33-mile electric range
Land Rover Range Rover Velar

New Range Rover Velar PHEV launched with 33-mile electric range

Land Rover has given the Range Rover Velar an update, with a new plug-in hybrid powertrain and an improved infotainment system
23 Sep 2020