Tesla stock falls on Model 3 delays, biggest-ever quarterly loss

San Francisco

TESLA Inc on Wednesday pushed back its target for volume production on its new Model 3 sedan by about three months, saying it was difficult to predict how long it would take to fix all production bottlenecks.

The company also reported its biggest quarterly loss ever, sending shares down nearly 5 per cent after hours as the loss was bigger than analysts had expected.

Tesla, led by Silicon Valley entrepreneur Elon Musk, faces a crucial test in its growth strategy as it ramps up production of the Model 3, its new sedan that starts at US$35,000, about half the price of its flagship Model S.

Although Tesla has made inroads among luxury car buyers with the advanced technology and innovative design in its Model S sedan and Model X SUV, it is the Model 3 on which its long-term viability rests. The company contin…