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Back to Earth: Tesla's losses grow on Model 3 delays

Back to Earth: Tesla's losses grow on Model 3 delays
From CBC - February 7, 2018

The day after Tesla and SpaceX CEO Elon Musk blasted his Tesla Roadster into space, his electric car company's mounting losses brought him back to Earth again.

Tesla Inc. posted a record quarterly net loss of $675 million US in the fourth quarter, up from a net loss of $121 US million in the same period a year ago. The Palo Alto, California-based automaker is struggling to meet production targets for its first mass-market car, the Model 3 sedan. It's also spending heavily on future vehicles, including a semi that's supposed to go into production next year.

Tesla lost $1.96 billion US for the full year, a record for the company and nearly three times its loss of $675 million US in 2016. Tesla has never made a full-year profit since it went public in 2010.

Tesla's adjusted fourth-quarter loss of $3.04 US per share was ahead of Wall Street's estimated loss of $3.15 US per share, according to analysts polled by FactSet. The adjusted loss eliminates one-time expenses, including stock-based compensation. Revenue for the quarter was $3.3 billion US, which was in line with analysts' forecasts.

Tesla's total revenue for 2017 was $11.8 billion US, which was also in line with analysts' forecasts.

Musk is a masterful marketer, and the red ink may not stem investors' excitement. The company's shares jumped threeper cent to close at $345 US after SpaceX successfully launched its Falcon Heavy rocket on Tuesday with Musk's cherry red Roadster as its cargo. The convertible, with a dummy in a space suit at its wheel, is now heading toward an asteroid belt between Mars and Jupiter. Tesla's shares are also in the stratosphere, up eightper cent from the start of this year.

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