Tesla posts $619 million loss amid Model 3 production issues

Thursday, November 02, 2017 12:50PM
If you put in an order for the new Tesla Model 3 you're going to have to wait even longer. The company just announced a big delay in deliveries and that's not the only bad news for the Palo Alto-based company.


FREMONT, Calif. - If you put in an order for the new Tesla Model 3 you're going to have to wait even longer. The company just announced a big delay in deliveries and that's not the only bad news for the company.

A lot of people are shocked by Tesla's earnings report, not only did the company lose more money than expected, it is making less cars.

The Model 3 is supposed to be the car of the masses, but production issues are making it more of the car of the few at least for now.

Tesla reported a $619 million loss in the third quarter mostly due to heavy spending on Model 3 production.

Elon Musk promised 1,500 in the third quarter, but only 220 were produced. Blame it on the battery, because of delays at its facility in Nevada. Tesla said it now expects to make 20,000 Model 3's per month by the end of March.

CEO Elon Musk originally promised that by December. The Model 3 has been in high demand. it's about half the price of the model S at $35,000 and that's not including federal tax credits.

More than 500,000 potential buyers are on its waiting list having put down a $1,000 deposit. The only people who might be more upset than them might be Tesla stock holders -- it was down more than 5 percent in afterhours trading.

Click here for more stories about Tesla.
(Copyright ©2017 KGO-TV. All Rights Reserved.)
Outbrain