Tesla has released its financial results for the first quarter of 2018, where the company recorded its highest ever quarterly loss ever at US$784.6 million, which exceeds the US$675.4 million loss experienced in Q4 2017.

However, the company managed to register a record revenue of US$3.4 billion in the first three months of the year. The company now enters Q2 2018 with a cash balance of about US$2.7 billion, a figure that is about 20.8% less than what it had at the end of 2017 (about US$3.4 billion).

Meanwhile, the company’s capital expenditure in Q1 2018 stood at about US$656 million, which is lower than the almost US$787 million spent in Q4 2017. Elon Musk, CEO of Tesla, also revealed that total capex for 2018 to be slightly below US$3 billion – lower than the US$3.4 billion spent across 2017.

Focusing on vehicle production, Tesla stated that prior to a planned shutdown in mid-April, more than 2,000 units of the Model 3 were produced weekly, with the figure going as high as 2,270 units in the last of those weeks. Even so, these numbers do not meet the target set during its previous announcement, which was 2,500 units weekly by the end of Q1 2018.

It hopes to increase this volume to 5,000 units per week in about two months when it installs a new automated line designed and built by Tesla in Germany. This will assist in growing the Model 3’s gross margin from negative in Q1 to 2018 to breakeven in Q2, and positive in Q3 and Q4. The company adds that only when it hits the 5,000-unit weekly production target will additional options for the Model 3 like all-wheel-drive and a base model with a standard-sized battery pack be offered.

Including other models, 24,728 Model S and X and 9,766 Model 3 vehicles were produced in Q1 2018, with 21,815 Model S and Model X vehicles and 8,182 Model 3 vehicles being delivered to customers.

In Q2 2018, Tesla will shut down production for about 10 days as it tries to address bottlenecks across its production lines to increase production. Along with the above-mentioned items, the company expects to generate positive cash in Q3 and Q4.