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)