Tesla misses first major Model 3 goal in worst financial quarter ever

The Polestar 1´s upper body is made of carbon fibre for stiffness torsional rigidity and weight savings     Volvo

The Polestar 1´s upper body is made of carbon fibre for stiffness torsional rigidity and weight savings Volvo

Similar problems ramping up production also plagued the company's first two auto models - the Model S sedan and the Model X SUV.

"While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it hard to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear", Tesla said in the letter.

Tesla is still sorting out its production issues for the Model 3.

Tesla said there are no issues with its supply chain.

The company has been having trouble keeping up with the demand for its electric vehicles, prompting it to cut production of two vehicles.

Model 3 production delays mean postponed sales could exacerbate the company's cash burn, which Tesla estimated at $1 billion in the upcoming quarter.

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The company said it plans to make 5,000 Model 3 vehicles per week by about March 2018 (a quarter later than initially predicted) and then 10,000 units per week sometime after that. Can increased its holdings in shares of Tesla by 2.7% in the 2nd quarter.

Tesla reported that cash and cash equivalents rose to $3.53 billion on September 30 from $3.04 billion at the end of the second quarter, but Tesla in August raised $1.8 billion by selling debt.

Tesla saw capital expenditures of about $1 billion in the fourth quarter and said it was "well capitalized" for the delayed Model 3 production schedule.

Tesla's continued need for cash is exacerbated by Musk's insistence on vertical integration, such as making its own batteries and selling cars directly to customers. Tesla said installations for its energy storage business more than doubled from a year ago.

Even worse for Tesla's fans: The automaker has pushed back its Model 3 manufacturing goals, now estimating that it won't ramp up production to the projected 5,000 vehicles per week until late in the first quarter in 2018, a full cycle later than originally planned.

The company released the official results today delivering on revenue of ~$2.9 billion and missed on earnings with a loss of $3.70 per share (GAAP). Excluding non-recurring items, such as a $1.1 billion in Brighthouse separation-related charges, adjusted earnings per share came to $1.09, above the FactSet consensus of 89 cents. The company says it's on track to deliver 100,000 Model S and Model X vehicles in 2017, up 30 percent from 2016.

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