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Markets Live: ASX follows US into the red

8 February 2018 12:25 AM
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Markets Live: ASX follows US into the red

Tesla said on Wednesday it was sticking with Chief Executive Elon Musk's revised production targets for its Model 3 electric sedan, but posted its worst-ever quarterly loss, and warned that spending would increase slightly this year.

Shares of the Palo Alto, California-based company were barely changed in extended trading.

Money-losing Tesla's long-term viability depends on annually selling billions of dollars of Model 3s, the new sedan that starts at $35,000, about half the price of its flagship Model S. . Tesla said that net reservations for the new model were stable during the fourth quarter.

Production delays have curtailed deliveries of the vehicle to customers - only 1,550 deliveries in the fourth quarter, far below the 4,100 vehicles expected by analysts - meaning revenue from the highly anticipated vehicle has yet to hit Tesla's bottom line.

Tesla's biggest-ever quarterly loss, however, was not as wide as analysts were expecting, and revenue also just topped targets.

Net loss widened to $675.4 million, or $4.01 per share, for the fourth quarter ended Dec. 31 from $121.3 million, or 78 cents per share, a year earlier.

Total revenue rose to $3.29 billion from $2.28 billion, just above the $3.28 billion expected by analysts, according to Thomson Reuters I/B/E/S.


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