Tesla says its new mass-market car remains on track as it reports narrowing losses

 
Mark Sands
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Musk's Tesla plans to put the Model 3 into production by September (Source: Getty)

Tesla posted a smaller loss for the quarter to 31 December, as it declared that its new mass-market saloon was on track to enter production by September.

Elon Musk's electric car maker reported net loss attributable to common shareholders of $121.3m (£97m) for the three months period, down from $320m in the same quarter of 2015.

Revenues rose 88 per cent to $2.28bn, while total operating costs rose to $702m.

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The firm said it planned to invest up to $2.5bn in capital expenditures ahead of the sart of Model 3 production later this year.

The Model 3 represents a substantial part of Tesla's goal of selling 500,00 cars annually in 2018.

Responding to the news, the car marker's shares climbed 1.6 per cent to $277.89 in after hours trading.

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