Tesla shares stall as jitters set in over future sales as car giant posts wider loss than expected

Rebecca Smith
Elon Musk said he sees a
Elon Musk said he sees a "clear path" to Tesla becoming more valuable than Apple one day (Source: Getty)

Shares in Elon Musk's electric car giant Tesla have fallen five per cent on concerns over future sales.

Despite speeding past Ford and General Motors to take the title of the most valuable US car maker last month, Tesla announced a seven per cent drop in customer deposits to $616.4m in its latest quarterly results.

Read more: Hit the brakes: Tesla's shares edge down as it recalls 53,000 cars

That has sparked some jitters over future sales and shares fell around five per cent to $295.46.

Tesla also reported that revenue doubled to $1.7bn, but its net loss widened to $330m, which was greater than expected.

While Musk said the firm remains on track to produce 5,000 of its mass market Model 3 vehicles a week, by the end of this year, and then 10,000 a week before the end of 2018, some have raised doubts over Tesla's ability to meet that goal.

Tesla is betting on the upcoming model to drive it to profit.

David Tamberrino at Goldman Sachs has maintained a "sell" rating for Tesla, off of a projected Model 3 launch curve, where he foresees Tesla missing its targeted production rates.

The company's Model X was launched with a two-year delay and in January, it reported fourth-quarter deliveries that fell short of its forecasts. In April though, it topped expectations to deliver just over 25,000 cars in the first three months of the year.

Tesla's market value surpassed Ford's at the beginning of last month, after shares in the electric car firm added over seven per cent, giving it a market value of $49bn to Ford's $46bn. It then edged up on GM, bumping the long-established car giant into second place a week later, despite having far fewer vehicles on the road.

Read more: Tesla drives past expectations to report a record 25,000 deliveries

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