Tesla’s Losses Deepen by 17%

Tesla Inc.'s net loss grew to $330 million in the first quarter of 2017 from $282 million in the same period last year.

The electric carmaker blames the increase on the costs of acquiring German manufacturing machinery maker Grohmann Engineering GmbH, buying California-based solar panel company SolarCity Corp. and preparing for a July production launch of its $35,000 Model 3 EV.

Tesla’s automotive revenue for the reporting period jumped to $2.3 billion from $902 million in the first quarter of 2016. Deliveries of its electric cars climbed 64% to 25,100 vehicles.

The company reports $4 billion in cash after burning through $622 million in cash, roughly half what it raised in January-March through debt and equity offerings. Tesla estimates its capital spending will total about $2 billion by the time the Model 3 launches.

Tesla reiterates that it expects to deliver between 47,000 and 50,000 vehicles in the first half of 2017. The company will offer second-half guidance after Model 3 production begins. Tesla has bragged that the new mass-market model will enable it to reach annual sales to 500,000 units in 2019. The company sold 76,200 vehicles last year.

Separately, CEO Elon Musk confirms that Tesla will unveil a prototype semi-truck tractor in September that utilizes some components from the Model 3. He also says the company expects to add the Model Y—a crossover variant of the Model 3—by about the end of 2019.