Tesla third-quarter loss doubles to $75 million, shares jump

Wed Nov 5, 2014 6:53pm EST
 
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By Bernie Woodall and Paul Lienert

DETROIT (Reuters) - Tesla Motors Inc (TSLA.O: Quote) shares rose more than 7 percent in after-hours trading on Wednesday after the electric-car maker beat analysts' expectations for third-quarter results.

The automaker said its quarterly loss nearly doubled from a year ago to $75 million, as manufacturing, sales and development expenses increased to meet rising demand for its Model S sedan.

The company also said production of its next vehicle, the Model X crossover, will be delayed again by several months until the autumn of 2015, "to get all of the details right," according to Chief Executive Elon Musk.

Tesla shares rose after-hours, however, as non-GAAP income of 2 cents a share beat Wall Street's consensus view of a loss of 1 cent per share.

Tesla said its net loss was 60 cents a share, compared with a net loss of 32 cents a year ago.

"Tesla needs to grow dramatically if it wants to remain a high flyer on the stock market," said Matt DeLorenzo, managing editor of Kelley Blue Book. "The bigger challenge is next year's launch of the Model X, which will boost sales and revenue."

Tesla's third-quarter revenue doubled to $852 million, while operating expenses climbed to $291 million.

The company delivered a record 7,785 Model S sedans in the quarter, most of them in North America.   Continued...

 
Tesla Motors Inc Chief Executive Elon Musk poses with a Tesla Model S electric car in Tokyo September 8, 2014.   REUTERS/Toru Hanai