Tesla announced Q3 losses per share of $0.58 on revenue of $1.24 billion. Analysts expected losses of $0.50 a share and revenue of $1.26 billion. This is Tesla’s sixth quarter of successive losses.
The losses this quarter are due in part to Tesla ramping up production of its electric SUV, the Model X, in order to meet its own guidance for cars shipped in 2015. The company also listed the construction of its battery facility, the Gigafactory, as a major expenditure.
Last quarter, Tesla delivered better than expected revenue and earnings, but lowered expectations on its car shipments for the year. The company now expects to convey somewhere between 50,000-55,000 cars in 2015, down from its earlier estimate of 55,000.
Earlier this quarter, the company gave investors some insight into whether Tesla is going to meet that annual goal. In the first two quarters of the year the company delivered 21,577 vehicles. In the third quarter it ferried an additional 11,603 to consumers.
The onus is now on Tesla to ship at least 16,820 vehicles before the end of the year. To address these concerns, Tesla managed investor expectations for the quarter to come in its earnings statement: “In Q4, we plan to build 15,000 to 17,000 vehicles, and deliver 17,000 to 19,000 vehicles, which will result in 50,000 to 52,000 total deliveries for the year.”
But costs will also rise next quarter, the company says its plans to invest $500 million during the fourth quarter, bringing total spending for this year to about $1.7 billion.
Despite the miss on earnings and revenue, Tesla’s stock initially went up a little more than 9 percent in after-hours trading. It has since trickled back down.