Tesla reports big losses again

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By Euronews
Tesla reports big losses again

Electric car maker Tesla has reported a steeper than expected quarterly loss.

We were in production hell for the first six months of the year

Elon Musk Tesla's chief executive officer

It said that was due to higher spending at its vehicle and battery factories.

This was the 13th consecutive quarterly loss for the Silicon Valley firm.

Its net quarterly loss widened to $293.2 million (263.32 million euros) from $184.2 million a year earlier. Total revenue rose 33 percent to $1.27 billion (1.14 billion euros).

The numbers underscore the financial hurdles it faces while taking on increasingly ambitious goals.

They include a massive increase in annual vehicle production over the next three years – from 50,000 to 500,000 – and the planned purchase of solar panel installer SolarCity.

Tesla said cash flow has improved and insists it is on track for future deliveries and profitability.

Tesla, led by entrepreneur Elon Musk, said it was still on track to deliver about 50,000 new Model S and Model X vehicles during the second half of 2016, and reiterated that it would spend $2.25 billion (2.02 billion euros) in capital expenditures in 2016 to prepare for its upcoming Model 3 sedan.

On its missed vehicle delivery targets Musk said: “We were in production hell for the first six months of the year. Man, it was hell. And we managed to climb out of hell partway through June and now the production line is humming and our suppliers mostly have their shit together.”

The company said it planned to open a new store every four days on average for the rest of the year, including in Taipei, Seoul and Mexico City, but did not disclose the cost