Tesla Highlights Used-Car Sales Growth Amid Model 3 Production Delay

SpaceX's Falcon Heavy roars into space

SpaceX's Falcon Heavy roars into space

But an automotive gross margin below management's guidance was expected since Tesla delayed its Model 3 production targets after its third-quarter shareholder letter was published.

Yet even that, and an accompanying warning that spending on Tesla's electric vehicle production would rise this year, could not knock the company's fortunes for long.

A day after SpaceX successfully launched the most powerful rocket in the world, Tesla posted a $675.4 million net loss for the fourth quarter of 2017, compared with a net loss of $121.3 million a year ago.

But revenue also increased by $1 billion, from $2.284 billion in the fourth quarter of 2016 to $3.288 billion in the fourth quarter of 2017.

Tesla, Inc. suffered its biggest quarterly loss in company history, according to numbers released Wednesday.

It looks like Tesla is prioritising the more expensive versions of the vehicle over the loss-making base variants, but the report mentions that it was not an unexpected move. Of course, Musk brought up the launch of the Tesla Roadster by SpaceX as some measure of Tesla's ability to produce a vehicle in a timely fashion saying, "if we can send a Roadster to the asteroid belt, we can probably solve Model 3 production". What we can say with confidence is that we are taking many actions to systematically address bottlenecks and add capacity in places like the battery module line where we have experienced constraints, and these actions should result in our production rate significantly increasing during the rest of Q1 and through Q2.

The production and delivery of the Tesla Model 3, their "affordable" $35,000 (£25,227.30) auto seems to be hitting several roadblocks.

- Tesla expects to send one of its EVs on an autonomous coast-to-coast road trip in the United States in three to six months.

- He is reasonably confident the company can reach positive cash flow probably in Q3, four or five months from now.

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