The company has previously projected that it would be producing 20,000 Model 3 cars a month by the end of the year, so it will be interesting to see whether the company sticks by that guidance when it releases its third quarter results after the bell on Wednesday.
The company said it would cut production of its Model S and Model X vehicles to redeploy resources towards the Model 3.
MetLife Inc. reported third-quarter adjusted profit and sales that beat expectations, announced a new $2 billion stock repurchase program and said it would divest its remaining Brighthouse Financial Inc. stake, but the stock still fell 1.7% in after-hours trade as it swung to a net loss. Tesla's other vehicles, the Model S and Model X, will be given less attention as the company shifts focus to getting the Model 3 up to speed.
Tesla's CEO Elon Musk had to deliver more bad news today: the company lost more money than expected last quarter. But investors' eyes were on the Model 3, the $35,000 auto that's meant to move Tesla from a luxury niche automaker into the mainstream.More news: Several dead, huge fireball part of Highway 400 pileup
Tesla said its primary production constraint has been at the battery module assembly line at its Gigafactory in Sparks, Nevada.
The company said it has a cash balance of $3.5 billion entering the fourth quarter. Tesla, Inc. (TSLA) has made its way to a 12-month gain of 67.67%. It also spent $325 million to repay a credit facility in the quarter. The stock sank -2.93% last month and is up 55.15 this year. That, industry experts say, is among the reasons Tesla is nowhere close to its aggressive goal of building 500,000 vehicles annually by next year, majority Model 3s.
Tesla posted a net loss of $619.4 million, or $3.70 per share, for the third quarter ended September 30 compared with a profit of $21.9 million, or 14 cents per share, a year earlier. (NASDAQ:TSLA) by 2.4% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission.
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.