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Tesla Reports Increased Revenue But Still Manages a Loss for Second Quarter

Tesla Motors has been selling its high-priced Roadster electric vehicle for well over two years, but has yet to turn a profit. The automaker reported strong revenues for the second quarter, but managed a significant loss.

Although revenue was strong at $28.4 million – a 5.4-percent increase over the same period last year – the automaker managed a $38.4 million net loss. The deficit is attributed to the continued research and development costs for Tesla’s next project, the forthcoming Model S sedan. The Silicon Valley-based automaker insists the development of the Model S is on track, and will debut in 2012 with a price tag of around $57,400 – nearly half the amount of the Roadster’s $109,000. With a more affordable offering, Tesla is expecting a dramatic increase in sales. As of July, the entire run of Tesla Roadsters has accounted for just 1200 sales.

In June, Tesla launched an initial public offering that generated $226 million. Tesla was the first U.S. automaker to go public since Ford’s IPO in 1956. The instant cash infusion should help keep Tesla on its feet until the Model S sees the light of day. Tesla expects its losses to continue, however, until the Model S debuts.

Can Tesla hold out until a second product arrives? Let us know what you think in the comments section.

Source: Automotive News (Subscription required)

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