Elon Musk's Tesla records its worst quarterly loss ever

Courtney Goldsmith
Follow Courtney
Tesla's Model 3 is about half the price of its Model S (Source: Getty)

Tesla posted its worst-ever quarterly loss today along with a warning that it would increase its spending slightly in the year.

The luxury electric carmaker, which is owned by billionaire Elon Musk, reported a loss of $675.4m (£486.8m) in the three months to the end of December compared with a loss of $121m the previous year, but the loss was smaller than analysts had expected.

Total revenue rose to $3.29bn from $2.28bn.

Read more: Elon Musk has been challenged to make Tesla a $650bn company in 10 years

Tesla has been grappling with production targets for its lower cost Model 3 electric sedan. The company plans to build about 2,500 Model 3s per week by the end of the first quarter and hit its target of 5,000 per week by the end of the second quarter.

In the fourth quarter, the firm produced 2,425 Model 3s along with more than 100,000 Model S sedans and Model X SUVs, which beat its targets and was a 33 per cent rise on the previous year.

Read more: Elon Musk's SpaceX is sending a rocket to Mars