Tesla Motors reported loss of about $50M during the 1st quarter as it accelerates the production of its all new crossover vehicle and improvements made to its sedan, Model S.
The loss of about 40 cent each share was experienced by Tesla compared to the profit of 10 cents for each share during the period January-March last year. The profit for the first quarter during the last year was the first0ever profit quarter recorded by the company.
The revenues rose by 10% to a good $620.5 mln in the recent quarter. Tesla stated that it developed a record-high 7,535 sedans, Model S during the span and delivered about 6,457 to the customers.
The cost of the Research and Development grew by 49 percent to $81.5 mln as Tesla gears up to launch the new Model X crossover in the next year and remodels Model S for the fast growing international markets. Tesla is expected to launch the new Model S with right hand drive version in the UK during the month of June and in Hong Kong and Japan later in summer.
The California-based firm, Palo Alto is also midway laying the groundwork for a huge battery factory, which is expected to be completed in the year 2020. Few sites that Tesla is keeping under consideration are Arizona, New Mexico and also Nevada and will probably choose two sites so as to minimize the delays. However, in a letter to the shareholders, Tesla did not mention the states that got a positive nod.
Tesla also incurred huge costs to install few additional safety equipments on its latest and existing cars post the investigation of two Model S batteries fired by the government. In both these cases, the road debris ruptured an aluminum shield and also the battery. However, the drivers were successful to pull off safely at the road escaping injuries but the cars were certainly destroyed.
As per recent reports, Tesla is expecting to deliver around 7,500 Model S sedans in this year’s second quarter and it also reiterated its whole plan to sell over 35,000 cars in 2014. The company is also expecting to raise production by thirteen percent to a good 19% in second quarter, which would translate to around 8,500 to 9,000 cars.