Electric car maker Tesla, who was basking in the glory of Model 3’s pre-launch success, has posted bigger quarterly losses. The company also lost two key executives even as it reiterated enhancing supply volumes.
In the Q1 March results, the electric automaker reported a loss of 57 cents per share on $1.6 billion revenue. It was alarmingly higher than the 36 cents per share of 2015, though its sales climbed 45 percent from the previous year, CNBC reported.
Outlining a solid outlook, Chief Executive Elon Musk told a conference call on Wednesday: “Tesla is going to be hell-bent on becoming the best manufacturer on earth. Thus far, I think we’ve done a good job on design and technology on our products.”
Analysts had forecast Tesla a loss of 58 cents per share, according to a Thomson Reuters consensus estimate. However, positive outlook pushed up Tesla shares as much as 8 percent in after-hours trading before scaling down slightly.
The CEO told the conference call that it will start churning out Model 3 cars in the second half of 2017. The goal will be to build 100,000 to 200,000 pieces by year end, reports The Wall Street Journal.
It was a setback for Tesla as two of its top manufacturing executives quit the company. Most prominent one was the global head of production Greg Reichow, who was the captain of Model X release and was to oversee the mass car– Model 3.
The other guy is Tesla’s vice president of production, Josh Ensign. The resignations were confirmed by Tesla spokesperson but added that Reichow will still have to stay until his replacement is found, Bloomberg reported.
The latest departures bring the total number of Tesla VPs who left the company in 2016 to five. Among the lot, Reichow is the most priced executive. As the head of the car production, he was the highest paid Tesla’s employee, making $6.4 million in cash, stock, and options.
Commenting on the departures, CEO Elon Musk, told Bloomberg: “Greg and the team deserve a lot of credit for building an all-new manufacturing organization from the ground up and for making Model S and Model X a reality.”
For Tesla, which is bracing up for the biggest manufacturing challenge of Model 3, the loss of its car production head will be a big blow.