Production of the new Model 3 has run into some snags, according to Tesla.

Tesla reported its revenues rose in the final quarter of 2017 to $3.3 billion, which was better than last year’s Q4 result of 2.3 billion. However, the increased revenue also brought a bigger loss of $675 million, or 4.01 a share, compared with $619 million, or $3.70 a share.

For the full year, revenue rose 55.7% to $11.7 billion due in large measure to achieving record sales results for its Model S and X electric vehicles; however, the company still lost money for the year and is well behind early production goals for the Model 3.

The company lost $1.96 billion, or $11.83 a share, this year compared with $694 million, or $4.68 a share, in 2016 as its operating expenses were nearly double from the year-ago figure.

“We also learned many lessons from the slower than planned production ramp of Model 3. All of this sets the stage for 2018 to be a transformative year for us,” the company said in the release.

(Tesla takes a tumble; earnings fall well below expectations. Click Here for the story.)

“At some point in 2018, we expect to begin generating positive quarterly operating income on a sustained basis. With the planned ramp of both Model 3 and our energy storage products, our rate of revenue growth this year is poised to significantly exceed last year’s growth rate.”

That transformation may need to come quick as who knows how long investors will hang in there with the company that as it continues to lose money and struggles with production of the mainstream model that is supposed to put it into the black.

Executives speculated that the company will produce 2,500 Model 3s a week during the first quarter of this year with production jumping to 5,000 weekly in Q2. This remains unchanged from its earlier predictions.

Conversely, it enjoys a banner year with the Model S and Model X. In Q4, Tesla delivered 28,425 Model S and Model X vehicles and 1,542 Model 3 vehicles, totaling 29,967 deliveries. Combined Model S and Model X deliveries in Q4 grew 10% globally compared to compared to the record third quarter, and they grew 28% compared to Q4 2016.

(To see why Tesla raised an additional $500M in cash, Click Here.)

The company limited production of the Model S and Model X to 22,137 vehicles due to reallocation of some of the manufacturing resources to Model 3 production, officials noted.