Tesla has reported its biggest ever quarterly loss, as it spent more to speed up production of the Model 3 - it's first mass market car. Jane Lanhee Lee reports.
Tesla reporting its biggest ever quarterly loss on Wednesday as it spent more to speed up production of the Model 3 - it's first mass market car. The electric carmaker posted a net loss of over 600 million dollars in the third quarter. In the same period last year it had a profit of about 22 million dollars. (SOUNDBITE) (English) REUTERS REPORTER ALEXANDRIA SAGE SAYING: "Tesla had promised it would be making about 5000 Model 3's sometime in December. Per week. Now they are saying it will only make that goal some time in the latter part of the first quarter of 2018." Last month CEO Elon Musk said Tesla only produced 260 Model 3s in the third quarter - missing by far a long stretch, a target of 1,500 and Musk said the car was QUOTE "deep in production hell". Despite the problem Tesla plans to produce half a million cars in 2018, mostly Model 3s, a six-fold increase over 2016 levels. (SOUNDBITE) (English) REUTERS REPORTER ALEXANDRIA SAGE SAYING: "The problems we are seeing today - Tesla says - are mostly due to problems at its giga-factory and a production line for the production of batteries that needed to be redone - redesigned. Elon said the was depressed three or four weeks ago over all these problems, but he feels like now they understand the root of the problems, they are getting them fixed and they're begging a little patience." Tesla's long-term viability really depends on the Model 3, the mass market car has a starting price of $35 grand, about half the price of its flagship Model S.