Tesla sticks by Model 3 target, warns spending could rise in 2018

San Francisco

TESLA Inc said on Wednesday it was sticking with chief executive Elon Musk's revised production targets for its Model 3 sedan, cheering investors who have put up with two delays, but the electric carmaker's plans to raise spending this year underscored its growing need for cash.

Reflecting the mixed fourth-quarter report, shares of the Palo Alto, California-based company, which are up 10 per cent since the start of the year, were barely changed in extended trading. Money-losing Tesla's long-term viability depends on annually selling billions of dollars of Model 3s, the new sedan that starts at US$35,000, about half the price of its flagship Model S.