Tesla announces third-quarter loss but the stock rises on future promises image

The California-based electric car company had an adjusted profit of 2 cents per share, but the company still posted a $75 million net loss and decided to trim down its full-year sales outlook to 33,000 units.

During the three-months period, the youngest publicly held US automaker had its best-ever quarterly sales – 7,785 Model S units. And, according to CEO Elon Musk the decision to decrease the full-year forecast had to do with the inability to produce enough cars, not with demand.

Tesla projected its Model S car would have surging orders for the years to come, adding it’s constantly increasing the production pace of the luxury plug-in electric sedan. Musk said that reaching 50,000 Model S sales in 2015 “will be no problem,” as the company would be able to manufacture at least 2,000 vehicles a week before 2016. The CEO said Tesla is “spending a lot to increase the production capability of the S,” and that “demand is not our issue, production is our issue, people don’t quite appreciate how hard it is to manufacture something – it is really hard.”

The fourth-quarter trimmed outlook has been influenced by the shutdown of the lone assembly plant in Fremont, California, which was closed for a month during the third-quarter to allow preparations for increased production and the introduction of the all-wheel drive variant of the Model S.

Via Bloomberg