Tesla Inc (TSLA) Slashes Production of Two Cars, Misses Q3 Estimates

Tesla Inc (NASDAQ:TSLA) unveiled its quarterly results Wednesday, posting a loss that was wider than any previous quarter in the company’s history.

Tesla Inc (TSLA)
Source: Tesla

The company has been having trouble keeping up with the demand for its electric vehicles, prompting it to cut production of two vehicles. One such car is the Model X and the other is the Model S.

All in all, Tesla will reduce the production of these cars by 10% in the fourth quarter in order to reallocate these resources into improving its Model 3. For the first quarter of fiscal 2018, the company plans on producing 5,000 Model 3 vehicles per week.

As far as the company’s earnings are concerned, Tesla posted an adjusted loss per share of $2.92 per share, significantly wider than the loss of $2.23 per share that Wall Street predicted.

Revenue was a stronger point for the automotive company, coming in at $2.98 billion, ahead of the $2.39 billion that analysts called for. Tesla’s free cash flow fell to -$1.4 billion versus the -$1.2 billion projected by analysts.

“While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear,” Tesla said in a statement.

TSLA shares fell 3.8% after the bell Wednesday.

Article printed from InvestorPlace Media, https://investorplace.com/2017/11/tesla-inc-tsla-2/.

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