Geelong Advertiser

Tesla hits bump in road after turnaround

-

UNABLE to string together profitable quarters, electric car and solar cell maker Tesla has reported a loss for the last three months of 2016. Tesla posted its first profit in 2016’s third quarter and had predicted net income in the fourth.

Instead, the company lost $US121.3 million ($A157.5 million).

Still, that was less than half the $US320.4 million loss from a year earlier.

Tesla’s shares rose 1.6 per cent in after-hours trading to $US277.90. They have jumped more than 50 per cent since early December.

The company said it expected to start making its Model 3 electric car in July, with higher-volume production by September.

Chief executive Elon Musk said the company would produce 5000 cars a week when Model 3 production was in full swing.

The Model 3 was a car that would be easier to make, Mr Musk said.

More of the Model 3’s production also will be automated.

“We also understand manufactur­ing a lot better than we did in the past,” he said on a conference call.

Fourth-quarter results included the acquisitio­n of solar panel maker SolarCity, Tesla said.

The company reported $US131.4 million in revenue during the quarter from its energy generation and storage businesses.

For the full year, Tesla reported a net loss of just less than $US675 million, or $US4.68 a share.

Full-year revenue rose 73 per cent to more than $US7 billion, surpassing initial estimates of $US6.9 billion.

 ?? Picture: REUTERS ?? NEXT PHASE: Tesla’s mass-market Model 3, due later this year.
Picture: REUTERS NEXT PHASE: Tesla’s mass-market Model 3, due later this year.

Newspapers in English

Newspapers from Australia