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Elon Musk's Tesla Loses $19,810 Per Electric Car

Elon Musk's Tesla Loses $19,810 Per Electric Car
Elon Musk, co-founder and CEO of American electric vehicle manufacturer Tesla Motors, poses with a Tesla during a visit to Amsterdam on January 31, 2014. (JERRY LAMPEN/AFP/Getty Images)

By    |   Tuesday, 03 November 2015 11:27 PM

Tesla Motors has set a dubious new record as it managed to lose more money per car sold than in any of the quarters in the last year.

The loss per car was an astounding $19,810, up from $15,975 in the prior quarter, SeekingAlpha reported.

The negative free cash flow worsened to $51,344 per car sold in the September 2015 quarter, up from $48,966 in the prior quarter.

Meanwhile, Tesla's net loss more than tripled in the third quarter as expenses and research costs rose, but investors cheered news that the company expects to meet or exceed its production targets this year, the Associated Press reported.

The Palo Alto, California-based electric car maker said it expects to produce between 50,000 and 52,000 vehicles this year. That's lower than the target of 55,000 it set earlier this year, but meets an updated forecast the company provided in August.

Tesla's loss of $229.9 million, or $1.78 per share, compares to a loss of $74.7 million, or 60 cents per share, in the July-September period a year ago.

Tesla says unadjusted figures do not reflect its true performance because accounting rules limit how it records revenue for leases. On an adjusted basis, the company lost 58 cents per share. That fell short of analysts surveyed by Zacks Investment Research, who forecast a loss of 53 cents.

Tesla's adjusted revenue of $1.24 billion beat analysts' forecast of $1.21 billion.
Tesla promised to speed up production of its electric cars after a strong rollout of its Model X SUV even as it posted its biggest loss in 10 quarters, Reuters reported.

Orders are accelerating for both the luxury crossover Model X and the 3-year-old Model S sedan, the company said. It estimated shipping 17,000 to 19,000 vehicles in the current quarter, up from 11,603 in the third quarter.

"We don't see any fundamental obstacle to achieving the production rate of several hundred (vehicles) per week sometime next month," Tesla Chief Executive Elon Musk said.

Investors were relieved that orders of the X were not cutting into those of the S, said analyst Ivan Feinseth, chief investment officer of Tigress Financial Partners.

"The X is selling well. It's not a cannibalizing car," he said. "This year the stock still has a cult following, people who love the man and the cars and the company."

The stock rose to $227.40 in extended trading, after ending 2.5 percent lower at $208.35. As of the close, it was down 26 percent from a 12-month peak of $282.26 on July 20.

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Tesla Motors broke a new record as it managed to lose more money per car sold than in any of the quarters in the last year, according to SeekingAlpha.com.
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Tuesday, 03 November 2015 11:27 PM
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