Tesla Motors 2nd-quarter loss widens to $38.5 million, but stands by goal of 2012 Model S

Wednesday, August 4, 2010

Tesla Motors 2Q net loss widens on higher costs

PALO ALTO, Calif. — Electric car maker Tesla Motors Inc., which went public in June, said Wednesday that its second-quarter net loss tripled from a year earlier, but the company stood by its goal to introduce its next-generation electric sedan by 2012.

Tesla, which has never made a quarterly profit, has said it expects to lose money until that car, the Model S, is produced in large numbers. The company currently makes only the $109,000 Roadster, a two-seater.

Tesla reported a net loss of $38.5 million, or $5.04 per share, for the three months that ended June 30. That compares with a loss of $10.9 million, of $1.56 per share, during the same period last year.

Revenue rose to $28.4 million from $26.9 million, lifted by development services revenue.

Tesla raise $2226.1 million in its high-profile initial public offering June 29, selling 13.3 million shares at $17 each.

The stock has since traded in a wide range. The share fell 69 cents, or 3.1 percent, Wednesday to close at $21.26. In aftermarket trading, they lost another 66 cents, or 3.1 percent, falling to $20.60.

The company announced last month that it was partnering with Toyota Motor Corp. to develop an electric version of Toyota’s RAV4 small crossover vehicle, that it plans to begin selling in the U.S. in 2012.

Tesla has bought a former Toyota factory in Fremont, Calif., and accepted a $50 million investment from the Japanese automotive giant. Tesla hopes to use the sprawling plant, which operated as a joint venture between Toyota and General Motors Co., to build the Model S.

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