Tesla Inc has taken a big hit, as it pushes back the release of its new Model 3 sedan, due to production delays.
Reports say that the company is uncertain about how long it will take to fix all “the production bottlenecks.”
If that wasn’t bad enough news, Tesla also reported its biggest quarterly loss ever… with a net loss of $619.4 million. This sent shares down nearly 5 percent, as the loss was bigger than analysts had expected.
In a statement (via Rueters), company founder Elon Musk took responsibility for the delays, blaming it on its battery module assembly line at the Gigafactory. “I was really depressed about three or four weeks ago. We are on it, we’ve got it covered,” he said encouragingly.
Although Tesla has made leaps in the luxury car biz, via its advanced technology and innovative design, everything is riding on its Model 3.
The report says the company continues burn through cash, as it scrambles to produce its new vehicle. In the third quarter alone, it spent $1.1 billion in capital expenditures.
During the third quarter, it produced just 260 Model 3 sedans, but it says they expect to be up to 5,000 units per week by late in the first quarter of 2018.