Tesla slips back into red but revenue grows

SAN FRANCISCO: Tesla reported that it slipped back into the red in the recently ended quarter while revenue revved, with orders for some of electric car models hitting record highs.

The company forecast that demand for its cars would show strong growth in the first half of this year, and shares rose more than 1.5 per cent to $277.80 in after-market trades despite Tesla’s reporting it had slid back to a loss.

Tesla CVhief Executive Elon Musk remained confident in an earnings call that electric car production would climb to 500,000 next year.

Tesla’s mass-market targeted Model 3 was on track to begin production in July, with output gradually ramping up to 5,000 vehicles weekly by the end of this year, according to executives. The Model 3 was designed from the outset to be more efficient to make, a move intended to avoid production stumbles.

Tesla expects to deliver 47,000 to 50,000 Model S and Model X vehicles during the first half of this year.

Tesla last week announced the opening of a new Gulf headquarters in Dubai, aiming to conquer an oil-rich region better known for gas guzzlers than environmentally friendly motoring.

Musk, co-founder of the company out to revolutionize the electric car market, was in the affluent city state to oversee the launch of the Gulf sales push. — AFP