The launch of the Model 3 is dragging Tesla down.Tesla's net income took a deeper dive into the red during the third quarter of 2017 as the company struggled to get production of its all-new Model 3 sedan up and running.In its third quarter report Tesla revealed that it lost more than $619 million during the period, representing the company's largest quarterly loss ever. In comparison, Tesla lost $336 million during Q2 of 2017 and posted a $21.8 million profit during the third quarter of 2016.
That extreme drop off in income is believed to be tied to the launch of the new Model 3 sedan. Tesla originally stated that it expected to build 1,500 units of the Model 3 in September alone, but the company delivered just 222 units of the electric sedan during the entire third quarter. Despite those meager delivery numbers, Tesla says it's still on track to build 5,000 units of the Model 3 per week by "late Q1 2018."
The news wasn't all bad for Tesla, however. Combined Model S and Model X sales totaled 26,137 units during the quarter, marking an 18 percent increase compared to the previous quarter. Tesla now projects to sell around 100,000 Model S and Model X electric vehicles this year.
Tesla enters Q4 with $3.5 billion on hand.