Electric car maker Tesla’s cash stockpile has risen to $7.5 billion after its third-quarter earnings report on Thursday, despite reports of the company spiraling toward bankruptcy.
Tesla posted a net loss of $10.89 per share on $3.76 billion in revenue for the third quarter. But the electric car company’s loss was less than the $22.59-per-share loss on $3.57 billion in revenue that Wall Street expected, according to data compiled by FactSet.
Investors have piled into Tesla — which has three times as many shares as Starbucks — as they anticipate its electric vehicle offerings to have broader appeal. Just yesterday, the company raised $1.6 billion in a debt offering that was much lower than previously expected. Shares were up 4.6% in premarket trading.
“Tesla received several hundred thousand Model 3 reservations since its October 3rd announcement,” said CEO Elon Musk, on the earnings call. “This would imply that at the end of Q3 we had approximately 300,000 Model 3 reservations and we estimate that we will end the year with about 700,000 vehicles in our backlog, which will be about two-thirds of our total vehicle order backlog.”
Tesla also said that it delivered 43,350 cars during the third quarter, up from the 36,500 the company delivered during the second quarter. The company said that deliveries of its Model 3 were slightly above forecast, at about 3,600 units. It delivered just 260 Model 3s during the second quarter.
Tesla has been hit with a string of production issues in recent months as it seeks to ramp up its car production. The company said Thursday that it will ramp up production of its Model 3 car, but its outlook for fourth-quarter production was not as bullish as some had hoped.
The company said it expects to build about 260 Model 3 vehicles during the fourth quarter, which is below Wall Street’s projection of about 741 vehicles. But the company did not specify whether this figure would be directly related to the company’s production process, or related to other factors, like the average selling price.
Citing people familiar with its planning, The Wall Street Journal reported on Monday that the company was seriously considering shutting down its main assembly line and moving production to a different site at one of its Fremont, California, factories.
The company said Wednesday on the earnings call that it would make an announcement “relating to the Company’s long-term manufacturing strategy,” but it didn’t disclose what that announcement would be.