Tesla’s First-Quarter Losses Nearly Doubles

Tesla Inc.’s net loss in the first quarter of 2018 surged to $785 million from $397 million in the same period last year.

The maker of electric cars and solar panels saw revenue in January-March grow 26% to $3.4 billion. Income from automotive operations rose 19% to $2.7 billion.

CEO Elon Musk predicts the company will achieve a positive net income, excluding stock-based compensation, in the third and fourth quarters—if it can push weekly output of its Model 3 electric sedan to 5,000 units by July.

Tesla once hoped to reach that production rate by the end of March. But it was able to reach only 2,200 units in the final week of the month. The company says its throughput in April averaged less than 2,300 units per week.

Second-quarter output of Model S sedans and Model X crossovers will no more than equal first-quarter volume, according to the company. It predicts output of those models will rise “significantly” in the second half of the year, thereby enabling the company to reach a full-year retail delivery target of 100,000 vehicles.

Impatient analysts note that Tesla is running out of time to capitalize on its early lead in the market for upscale, long-range EVs. Over the next few years, the segment will be joined by electrics from such companies as Audi, BMW, Jaguar, Mercedes-Benz, Porsche and Volvo—all with more cash and greater manufacturing expertise.