Electric car maker Tesla Motors Inc brushed off a big first-quarter loss and cheered investors with news that it plans to accelerate its production plans.
Tesla’s loss rose 84 percent to US$282 million in the first quarter as it struggled with parts delays for its new Model X sport utility vehicle. The company’s stock-based compensation costs also more than doubled during the quarter to nearly US$90 million.
The loss of US$2.13 per share far exceeded Wall Street’s forecasts. Analysts polled by FactSet expected a loss of US$0.87 per share.
However, Tesla shares jumped 3 percent to US$229.48 in after-hours trading after the company said it is pushing ahead its plan to make 500,000 vehicles per year to 2018, two years earlier than scheduled. That would be up from 50,000 vehicles last year.
Tesla said it remains on track to deliver 80,000 to 90,000 vehicles this year after resolving the Model X production issues.
It also reaffirmed that production of the lower-cost Model 3 car is to start next year.
Tesla has set July 1 next year to start production of the Model 3 and wants to make 100,000 to 200,000 cars in the second half of the year.
Tesla chief executive officer Elon Musk said he celebrated the first flawless production of a Model X at 3am on Friday last week — eight months after the company started deliveries to customers.
He said that the Model X — with its gull-wing doors and free-standing rear seats — is much more complicated than the Model 3, so industry watchers should not assume the company would have similar production problems.
Tesla would also be tougher on suppliers who cannot meet its deadlines, he said.
“No element of Model 3 can be approved unless manufacturing says it’s easy to manufacture,” Musk told analysts during a conference call on Wednesday evening.
Tesla unveiled the Model 3 on March 31. With a starting price of about US$35,000, it is to be the most affordable car in the company’s 13-year history.
Tesla said more than 325,000 people put down a US$1,000 deposit to reserve the car in the first week after the unveiling.
Musk said customers should order now if they want to receive their car in 2018.
Tesla delivered 14,810 Model S sedans and Model X sport utility vehicles in the first quarter. That was lower than expected, largely due to the Model X delays. However, it was still a 48 percent increase in deliveries over the same period last year.
The firm’s first-quarter revenue rose 22 percent to US$1.1 billion.
The company said Model X prices — which start at about US$80,000 — were about 30 percent higher than for the Model S.
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