Abu Dhabi, UAEThursday 22 August 2019

Tesla trims losses as it prepares for UAE expansion

The US electric car maker, which is being backed by Dubai for growth across the country and wider region, has been investing heavily on its latest models.
A Tesla Model X at the  Last Exit, Sheikh Zayed Road, Jebel Ali. Dubai is to be a launchpad for the US car maker which has narrowed losses recently.

Victor Besa / The National
A Tesla Model X at the Last Exit, Sheikh Zayed Road, Jebel Ali. Dubai is to be a launchpad for the US car maker which has narrowed losses recently. Victor Besa / The National

Tesla posted a smaller quarterly loss and said its mass-market Model 3 saloon was on track for volume production by September.

The electric car maker said it expected to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017.

On Tuesday, Investment development agency Dubai FDI said it will help Tesla expand throughout the UAE and wider Middle East as the emirate bids to be the regional centre for the American car maker.

Dubai FDI, part of the Department of Economic Development, said it will collaborate with the electric vehicle (EV) company to catapult adoption throughout the region. Dubai will be a launchpad for Tesla across new markets while making the UAE its regional hub, said Fahad Al Gergawi, the chief executive of Dubai FDI.

“Dubai FDI will continue to assist Tesla to expand and grow in the region and its neighbourhood,” he said.

The company said it planned to invest between US$2 billion and $2.5bn in capital expenditures ahead of the start of Model 3 production.

Tesla’s shares rose 1.6 per cent to $277.89 after the bell in New York.

The company has been investing heavily on production of its latest models and in its $5bn “gigafactory”, which makes lithium-ion battery cells in Nevada.

Given Tesla’s elevated stock price, many analysts believe Tesla will seek a capital raise in coming months.

The company, led by the billionaire entrepreneur Elon Musk, is betting big on Model 3 to help meet its goal of producing 500,000 cars annually in 2018.

Total operating costs rose 46.6 per cent to $702 million in the latest quarter.

The company’s results include those of Solar City, which was acquired last year. Uncertainty by analysts on how Tesla would model SolarCity into its results resulted in a wide range of estimates.

Tesla’s net loss attributable to common shareholders narrowed to $121.3m, or 78 cents per share, for the fourth quarter ended December 31 from $320.4m, or $2.44 per share, a year earlier. http://bit.ly/2l9C0tI

Revenue rose 88 per cent to $2.28bn.

Up to Wednesday’s close, Tesla’s stock had risen 53.9 per cent in the past 12 months.

* Reuters

with The National

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Updated: February 23, 2017 04:00 AM

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