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Tesla reports losses of $785 million, despite increased Model 3 Production and Revenue

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Tesla reports losses of $785 million, despite increased Model 3 Production and Revenue

Palo Alto, California-based Tesla on Wednesday posted that it lost less money than the market’s predictions. The company was increasing its progress to produce Model 3 electric cars.

The automaker unveiled that in the first 3 months of the current year, they have faced net losses of 784.6 million dollars on the revenue of 3.4 billion dollars.

The accustomed loss of the company per share was about $3.35 which is quite less than the expectations of $3.42 on a profit of 3.32 billion dollars.

The car-maker company’s shares were high less than a percent to 303 dollars in after-market trades that chased the announcement of the remunerations figures.

According to the California-based firm, they have made a significant progress in raising the production of their Model 3 cars reflected key to its accomplishment in the mass market.

Before a planned shutdown of the production to ease the system and make it more efficient, the car manufacturer managed to produce 2,270 cars a week. However, the rate is still somehow lower than the target that CEO of the Tesla, Elon Musk had set.

Elon Musk told to its shareholders via earnings letter that they continue to aim Model 3 production of around 5,000 a week in about 2 months, though their prior experience has confirmed the difficulty of precisely predicting specific production rates.

To reach the Model 3 production numbers, the company will close its line again in this quarter to make alterations, added Musk.

Elon told that if the progress goes according to their plan then certainly Tesla could see gaining profit in the second half of the present year.

Many Investors and analysts of the market have shown their anxiety about how rapidly Tesla has been losing the cash and discontinuing losses would be a foremost turn in the road for the electronic-automaker.