Tesla’s Losses Nearly Triple

Tesla Inc. reports that its consolidated revenue in 2017 jumped by two-thirds to $11.8 billion. But the electric car maker’s net loss ballooned to $2 billion from $675 million in 2016.

Operating expenses surged by two-thirds to $1.4 billion last year, mostly because of costs associated with the troublesome launch of its Model 3 electric sedan. The company’s operating loss deepened to $2.2 billion from $746 million in 2016.

Tesla’s consolidated revenue in October-December jumped 44% to $3.3 billion. But its operating loss for the quarter deepened to $2.2 billion—its worst quarterly result ever—from $746 million in 2016. Adjusted net loss increased 10% to a record $675 million.

The company describes 2018 as a “transformative year,” in which it will raise weekly output of Model 3s to 2,500 cars by the end of March and 5,000 units by the end of June. Tesla says doing so will enable it to begin generating sustained positive operating income “at some point” this year.

Tesla predicts that its production costs for the Model 3 will shrink enough to equal those of a comparable piston-powered car by mid-year. The company says constraints on battery cell supplies will limit its output of Model S luxury sedans and Model X crossovers to 100,000 units this year.