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Tesla Posts $61.9 Million Loss as Second-Quarter Sales Climb

Thursday, 31 Jul 2014 04:56 PM


Tesla Motors Inc., the California-based maker of luxury electric cars, said Thursday it lost $61.9 million, or 50 cents a share, in the second quarter, as revenue nearly doubled to $769.3 million.

The automaker has been spending heavily to update and expand its Fremont assembly plant, which builds the $70,000-plus Model S sedan, and eliminate production bottlenecks. It said the plant now can build up to 1,000 cars a week.

On a non-GAAP basis, Tesla said it earned 11 cents a share, topping analysts' expectations of 4 cents. The company expects non-GAAP earnings to be about the same in the third quarter.

In the year-ago quarter, Tesla lost $30.5 million, or 26 cents a share, on revenue of $405.1 million.

The initial response from investors was mixed. Tesla shares rose briefly above $227 after it reported its results after the market closed, then quickly plunged below $216. They closed at $223.30, down 2.5 percent, in regular trading.

Earlier on Thursday, the automaker announced a partnership with Japanese electronics giant Panasonic Corp. to build a $5 billion battery "gigafactory" in the United States.

In its earnings release, Tesla confirmed that it broke ground in June at a site near Reno, Nevada, that could be used for the factory, which is expected to open in 2017.

Tesla built a record 8,763 Model S sedans in the quarter, and delivered a record 7,579 cars to customers, while being "unable to keep pace with increased demand" in North America and Europe.

Tesla said it remains "on track" to deliver more than 35,000 Model S sedans this year, including an estimated 7,800 in the third quarter. With the plant expansion, it projects fourth-quarter deliveries will nearly double to more than 13,000.

The Fremont expansion will give Tesla the ability to build 100,000 cars a year by the end of 2015. The company plans to launch its third vehicle, the Model X crossover, in spring 2015.

The Fremont updates include a new final assembly line and more body-shop automation, which will boost overall production capacity. The new line will be able to build both the Model S and the Model X.

Tesla said it expects to invest up to $950 million this year as it "slightly" accelerates spending on more production capacity and the battery factory. That's about $100 million than previously announced.

© 2017 Thomson/Reuters. All rights reserved.

   
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Tesla Motors Inc, the California-based maker of luxury electric cars, said it lost $61.9 million, or 50 cents a share, in the second quarter, as revenue nearly doubled to $769.3 million.
Tesla, TSLA, earnings, car
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2014-56-31
Thursday, 31 Jul 2014 04:56 PM
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