Tesla results for the third quarter 2017 showed revenue of about $2.9 billion and a loss of about $3.70 per share. Analysts expected a loss of $2.45 per share, but necessary capital expenditure related to Model 3 production woes impacted Tesla’s losses.
The results compare to revenue of $2.8 billion and a loss of $2.04 per share in Q2. Revenue increased 30 percent year-over-year.
While the carmaker experienced the largest quarterly loss in its history, the company also set a record for delivery of the Model S and Model X:
In Q3, we delivered 25,915 Model S and Model X vehicles and 222 Model 3 vehicles, for a total of 26,137 deliveries. Combined Model S and Model X deliveries in Q3 grew 18% globally compared to Q2 and 4.5% versus the same quarter one year ago. Consequently, both Model S and Model X gained further market share in the US luxury vehicle market. In addition, our used vehicle sales more than doubled from the prior quarter.
Margins, however, slumped to 18.3 percent from 27.9 percent the previous quarter due to Model 3’s high production cost and few deliveries to date. The company said it plans to produce “about 10% fewer” units of the Model S and Model X in the fourth quarter to devote more resources to the Model 3.
With a cash balance of $3.5 billion entering the fourth quarter, Tesla expects capital expenditures to be about $1 billion. Initiatives demanding capital include Model 3 production equipment, factory improvements, and Tesla’s expansion of stores, service centers, delivery hubs and the Supercharger network.