The base price for a new Tesla Model S with all-wheel-drive will run you about $70,000. While that price tag isn’t for the faint of heart, its doesn’t quite represent how much the electric vehicle maker is putting into its products, as a new report shows the company is losing more than $4,000 on each car it sells.

Reuters reports that the Silicon Valley automaker has burned $359 million in cash in just the last quarter – mostly due to operating losses – leading the company to cut its production targets for the next two years.

CEO Elon Musk said last week that he’s considering options to raise more capital, and didn’t rule out selling more stock, while continuing to promise that the first quarter of 2016 will see the company making enough money to mass produce a number of model vehicles.

Tesla says that its operating costs and research and development spending rose during the second quarter of this year, while the average prices for its Model S vehicle dropped slightly – a combination that led to the losses.

The funds being lost by Tesla likely stem from the production of its upcoming Model X SUV, as Reuters notes that engineering, assembly line equipment, testing and meeting safety and emission standards related to a bringing a new vehicle to market can cost more than $1 billion.

And the company estimates it will spend even more this year – about $1.5 billion – than in the past, as it works to launch its new vehicle.

Despite the $4,000 loss on each vehicle, Tesla has a valuation of $31 billion, more than many major automakers like Fiat Chrysler, Reuters reports.

Of course, the losses aren’t necessarily a sticking point for the electric car company, as it’s faced downturns in the past.

Back in 2012, the company recovered from a cash crunch by selling shares and renegotiating the terms of a federal loan, Reuters reports.

Tesla burns cash, loses more than $4,000 on every car sold [Reuters]

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