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TESLA Q2 LOSSES GROW, DESPITE REVENUE INCREASE


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TESLA Q2 LOSSES GROW, DESPITE REVENUE INCREASE

By Mark Kleis

Tesla has released its earnings report for the second-quarter of 2010, showing a widening loss of $38.5 million compared to the same period last year.

The California-based electric carmaker says that its losses were expected and due to the fact that it has increased its investment into the development of the upcoming and highly crucial Model S sedan, according to Reuters. The losses amount to $5.04 per share, following Tesla’s recent and successful IPO which helped raise $226 million through the sale of 13.3 million shares.

Despite the increased losses, Tesla did have positive news to share as revenues jumped to $28.4 million for the quarter, up from $27 million during the same period last year.

Tesla still stands by the fact that it doesn’t intend to turn a profit until it is well into selling the Model S sedan, which the electric carmarker currently plans to begin selling in 2012.

link:

http://www.leftlanenews.com/tesla-q2-losses-grow-despite-revenue-increase.html

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Electric-car maker Tesla reports quarterly loss

02:41 AM

Investors in electric-car maker Tesla Motors had better get used to a long string of quarterly losses if the company's first earnings report as a public company is any indication.

Tesla reported a second-quarter loss yesterday of $38.5 million in its first earnings release as a publicly traded company, Bloomberg News reported. The net loss, which works out to $5.04 a share, compares to $10.9 million, or $1.56, for the same period last year.

The Palo Alto, Calif., based Tesla, which makes only a a $109,000 electric roadster, isn't promising to start turning a profit anytime soon:

CEO Elon Musk says losses will continue until at 2012 when the company can start producing its mass-market $57,000 Model S. That a prototype in the photo above. In the meantime, it is selling battery units to Daimler and just signed an agreement for cooperation with Toyota on an electric car project.

Tesla is "not the kind of stock I think you buy as a fundamental investor, unless you have a very long time horizon," Bloomberg quotes Michael Yoshikami, chief investment strategist at YCMNet Advisors in Walnut Creek, Calif., as saying. "If you're playing with this stock as a growth game, you're betting they're going to be the next Google."

His fund doesn't hold Tesla stock.

link:

http://content.usatoday.com/communities/driveon/post/2010/08/electric-car-maker-tesla-reports-quarterly-loss/1

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Tesla posts wider Q2 loss; revenue climbs

August 5, 2010 - 12:01 am ET

SAN FRANCISCO (Reuters) --Tesla Motors Inc. on Wednesday posted a wider second-quarter loss on higher research and development costs as the electric car maker races to launch a new model in 2012.

Tesla, known for its $109,000 Roadster, reported a second-quarter net loss of $38.5 million, compared with a loss of $10.8 million a year ago.

Revenue was $28.4 million, up 5.4 percent from a year ago.

Tesla, which went public in late June, does not expect to be profitable until it sells significant numbers of a planned Model S sedan that it expects to begin selling in 2012.

The company said the launch of the Model S remains on track with prototypes of the Model S battery and powertrain components being tested in house.

The automaker has had one of the few successful initial public offerings this year, raising about $226 million in its offering of 13.3 million shares, and becoming the first U.S. car company to go public since Ford Motor Co. in 1956.

The company has never generated a profit. It expects losses to widen as it devotes the next year to preparing to manufacture the Model S, a luxury electric sedan it plans to launch in 2012 and to sell starting from $57,400.

Read more: http://www.autonews.com/article/20100805/OEM/100809908/1424#ixzz0vlsf48j7

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