— Tesla Inc. is expected to report a net loss of $1.9 billion this quarter after a $1 billion profit last year, a Wall Street Journal analysis of company financial statements showed on Monday.
The company’s first full quarter after the Model S recall that caused the battery to blow out was a net gain of $974 million, a more than 60% jump from the $2.6 billion it posted in the year-ago quarter.
Tesla reported a net profit of $4.3 billion for the full fiscal year, which ended in September, up from a loss of about $2 billion a year ago.
Its loss was due in part to higher costs, but also to higher production costs, which the company attributed to an increase in the number of Model S vehicles it sells and the number it plans to sell.
In a filing with the Securities and Exchange Commission on Monday, Tesla said it had made more than 3,200 battery-related modifications to its battery technology since the recall.
Tesla is currently testing its battery-technology with its new electric vehicle (EV) Roadster.
Tesla said it will reduce the size of its battery pack from the original 150 millimeters to 50 millimeters, which it said would be “much less” than the size that the batteries were originally designed for.
The company also said it is increasing the energy density of its batteries, which is expected in 2018.
“The battery pack we are developing for our Model 3 will be more than twice the size it is today,” Tesla CEO Elon Musk said during the conference call.
“The new battery pack will deliver significant battery energy density increases.
We are also working to make battery packs that are far more efficient and will make them more widely available.”
Tesla said the new batteries will be made by TSMC Corp. of San Jose, California.
Investors have been buying up Tesla shares amid the Model 3 recall.
Shares of Tesla are up more than 2% so far this year, while the S&P 500 is up about 1% and the Nasdaq Composite Index is up 2.6%.
The latest earnings report from Tesla follows a report from a private analyst last week that the company was in danger of having to shutter its manufacturing facility in California if it can’t convince regulators to approve a $4 billion bailout of the company.
Tesla has already paid $5.2 billion in bond repayments to bondholders, and is now in the process of raising $10 billion in funding, which includes the $1-billion loan it took out from JPMorgan Chase & Co. in January.
Since the Model 2 recall, Tesla has been selling its battery packs in smaller and more affordable models at a steep discount.
Tesla said in October that it had already sold 20,000 of its smaller Model S battery packs.
Shares of Tesla closed up nearly 2% at $5,085 on Monday to $2,967.