The EV automaker adds that it now expects to achieve a production rate of 5K Model 3 vehicles per week by late in the first quarter of 2018.
Tesla stock closed at $321.08 Wednesday, down 3.15%, and was falling further in after-hours trading.
One reason for the weak numbers was the trouble Tesla has been having with the launch of its Model 3, the company's first mainstream battery-electric vehicle.
Electric-car maker Tesla Inc. swung to a $671 million loss in the third quarter as it struggled to ramp up production of its new Model 3 small vehicle.
The main production constraint Tesla had faced was at the battery module assembly line, where it said it had redesigned some of the automated processes and was now hoping throughput could increase.
Shares of Tesla have fallen almost 17 percent from a 12-month high of $385 in September, but are still up 50 percent from January fueled by belief in the long-term prospects of the company.
Tesla's CEO Elon Musk had to deliver more bad news today: the company lost more money than expected last quarter.
The company said it has a cash balance of $3.5 billion entering the fourth quarter. It also spent $325 million to repay a credit facility in the quarter. "Many Model 3 customers put deposits down on the vehicle more than a year ago before they even saw the vehicle, so it's clear Tesla buyers don't follow the usual logic-driven auto buying process".
"Model 3 reservation holders may not be thrilled about the fact that they have to wait longer than they thought for their vehicle, but it likely won't cause them to cancel their orders en masse", Caldwell said. Its revenue totaled $2.51 billion down -6.84% from the previous quarter.
Tesla posted a net loss of $619.4 million, or $3.70 per share, for the third quarter ended September 30 compared with a profit of $21.9 million, or 14 cents per share, a year earlier. Finally, Vetr upgraded shares of Tesla from a strong sell rating to a sell rating and set a $320.97 price objective for the company in a research note on Friday, October 13th. Tesla expects Model 3 non-GAAP gross margin to reach breakeven by end of Q4 as capacity utilization kicks in at higher volume.
Panasonic sees batteries as central to its plan to almost double automotive business revenue to 2.5 trillion yen by the year through March 2022.