Tesla reported its worst-ever quarterly loss during its most recent round of financial results. However, the company forecasts that it will make money during the second half of this year.
The electric car giant reported a loss amounting to 709.6 million dollars (£522m), as compared to a loss of 330 million dollars (£243m) at this time in 2017.
However, the revenue of the company was up to 3.4 billion dollars (£2.5bn) as compared to 2.7 billion (£1.98bn) this time in 2017 – a figure that is above what analysts anticipated.
In a letter to its shareholders, the company also said that it expects to achieve the key production target of 5,000 of its Model 3 vehicles per week to start making money later in 2018.
Tesla disclosed that the production of the Model 3 is already starting to increase, with the company producing around 2,000 units of the Model 3 per week for three consecutive weeks in April, even reaching 2,270 during the last of those weeks.
Increasing the production of the cars is necessary to the growth plans of the firm. However, targets have been pushed previously back several times as the company has strived to overcome what it dubbed as production “bottlenecks.”
In its most recent results, Tesla said that it has now “largely overcome” such concerns and is forecasting figures close to a break-even for the next quarter, that will be followed by “highly positive” results for the two quarters after that.
In their letter to shareholders, chief financial officer Deepak Ahuja and chief executive Elon Musk said: “Model 3 is already on the cusp of becoming the best-selling mid-sized premium sedan in the US, and our deliveries continue to increase.
“Consumers have clearly shown that electric vehicles are simply more desirable when priced on par with their internal combustion engine competitors while offering better technology, performance and user experience.”