Elon Musk may have sent a car into space just a few days ago, but Tesla isn’t exactly flying high on cloud nine. The company posted its biggest quarterly loss ever, losing US$675.4 million in the three months ending December 31, 2017.

The figure is more than five times the amount of losses the company suffered in the same period last year, which stood at US$121 million. For the entire 2017, Tesla ended the year with losses amounting to almost US$2 billion.

Capital expenditure in Q4 2017 alone was US$787 million, largely attributed to increasing the production capacity for the Model 3 and the company’s Gigafactory. Across 2017, the company’s capex stood at just over US$3.4 billion, significantly more than the US$1.28 billion recorded in 2016. Moving forward, capital needs include the Tesla Semi, Model Y and a factory in China.

While the losses may make Tesla look like it is in trouble, the company still entered the first quarter of 2018 with a cash balance of almost US$3.4 billion. Additionally, the company’s revenue was almost US$3.3 billion for the Q4 2017 period, while it earned almost US$12 billion for the whole of 2017.

Vehicle deliveries stood at 29,967 cars in Q4 2017, with the majority being Model S and Model X vehicles (28,425 units), as production issues continue to plague the Model 3 (1,542 units). In spite of this, those figures represent a 10% growth from Q3 2017 and a 28% growth from the same period in 2016. For the whole of 2017, 101,312 units of the Model S and Model X were delivered – an increase of 33% over the previous year.

Tesla reaffirmed its forecast for Model 3 production at 2,500 units weekly by the end of Q1 2018, with the figure going up to 5,000 units by the end of Q2 2018. Following that, it plans to increase capacity to accommodate 10,000 units weekly. The company has already limited production of the Model S and Model X to just 22,137 units in order to shift resources to Model 3 production.

For the coming year, Tesla expects to “begin generating positive quarterly operating income on a sustained basis.” With more focus on cranking up Model 3 production and its energy storage products, revenue growth this year is poised to significantly exceed last year’s growth rate.