Tesla expects to boost 2015 output to more than 60,000

Thu Jul 31, 2014 7:19pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Paul Lienert and Bernie Woodall

DETROIT (Reuters) - Tesla Motors Inc, the California-based maker of luxury electric cars, said it expects to build more than 60,000 cars in 2015, after spending heavily this year to update and expand its Fremont assembly plant.

Chief Executive Officer Elon Musk also said the company will fund 40 percent to 50 percent of the estimated $4 billion to $5 billion cost of building a new "gigafactory" to produce cheaper and more efficient battery packs for its future electric cars, including the $35,000 Model 3 range that is due in 2017.

After the market closed on Thursday, the company said it lost $61.9 million, or 50 cents a share, in the second quarter, as revenue nearly doubled to $769.3 million. (Graphic: link.reuters.com/bes52w)

The automaker has accelerated the expansion of the Fremont plant, which builds the $70,000-plus Model S sedan and will add a companion crossover, the Model X, next spring. Musk said the plant now can build up to 1,000 cars a week, and will double that by the end of next year.

Tesla expects to deliver about 35,000 Model S sedans this year.

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, with shares rising, falling, then climbing again after Musk's call with analysts. They closed at $223.30, down 2.5 percent, in regular trading.   Continued...

 
The dashboard of a Tesla Model S is shown at a Tesla Motors dealership at Corte Madera Village, an outdoor retail mall, in Corte Madera, California May 8, 2014.  REUTERS/Robert Galbraith