Tesla Losing $4,000 For Every Vehicle Sold

Electric car firm Tesla is losing more than $4,000 (£2,590) on every car it sells, according to its latest financial results.

It lost $47m (£30m) in the last quarter on sales of 11,532 vehicles, and has cut its production targets for this year and next year.

The cars are expensive, with the Model S line-up starting at $70,000 (£45,000) before taxes and ranging in price up to $106,000 (£68,000).

The company was taken public in 2010, and Mr Musk has promised that by the first quarter of 2016 Tesla will be making enough money to switch from producing one expensive low-volume car to mass producing multiple models.

A single new car model can cost up to $1bn (£600m) to engineer and bring to the market, as a result of purchasing assembly line equipment, and rigorous testing.

Tesla has cash reserves of just $1.1bn (£700m), compared to General Motors (NYSE: GM - news) ' $20bn (£12.9bn) cash pile.

Chief executive Elon Musk said various options are being considered to raise more money, and has not ruled out selling off more stock.

The company wants to sell between 50,000 and 55,000 cars in the current full year.

The company's stock is currently 70% higher than it was two years ago, and 8% ahead of its level at the start of the year.

It has a market capitalisation of $31bn (£20bn) meaning it is worth more than Fiat Chrysler Automobiles which makes Jeep vehicles.