Elon Musk’s ‘leccy car firm Tesla has boosted its revenues and deepened its losses, according to its latest quarterly results.
Total revenues for the first quarter of fiscal year 2017 were $2.96bn, more than double the $1.15bn figure for Q1 last year. Net profits were negative, being a loss of $397m. Last year the company made a loss of $282m in its first quarter.
“We have made a solid start to what should be an exciting 2017,” said Tesla in a letter to shareholders.
The firm’s car unit – it also has business lines in solar panels and electricity storage – made a loss of $214m, against $192m in Q1 2016. Cars generated $2.03bn of Tesla’s total Q1 income.
The company said its Model 3 vehicle’s development was “nearly complete”, adding that it plans to expand its operations into Dubai and South Korea. Chief exec Musk said on the earnings call that the company is worried its customers are confusing the new Model 3 and its flagship Model S.
Increased revenues can be explained by Tesla boosting car production by what it said was a 64 per cent increase year-on-year. Its letter offered no explanation as to why the company’s net losses have deepened but did highlight how “significantly higher gross profit more than offset higher operating expenses.” ®