Tesla shares slip on second-quarter loss

A rise in R&D costs contributes to a net loss for the maker of electric cars, as revenue edges up 5 percent.

Tesla Motors on Wednesday posted a wider second-quarter loss on higher research and development costs as the electric-car maker races to launch a new model in 2012.

The Silicon Valley carmaker's shares slipped 5 percent in after-hours trading after closing down more than 3 percent on the Nasdaq stock market during regular trading.

Tesla Model S
The Tesla Model S on display at the Detroit auto show in January. Sarah Tew/CNET

Tesla, known for its $109,000 Roadster, reported a second-quarter net loss of $38.5 million, or $5.04 per share, compared to a loss of $10.8 million, or $1.56 per share, a year ago.

The company had 7.64 million common shares outstanding in the second quarter, compared with 6.96 million last year.

Revenue was $28.4 million, up 5.4 percent from a year ago.

Tesla, which debuted on the public market in late June, does not expect to be profitable until it sells significant numbers of a planned Model S sedan that it expects to begin selling in 2012.

Tesla shares were trading at $20.50 after hours. The shares closed at $21.26 on the Nasdaq.

 

Join the discussion

Conversation powered by Livefyre

Don't Miss
Hot Products
Trending on CNET

HOT ON CNET

Want affordable gadgets for your student?

Everyday finds that will make students' lives easier: chargers, cables, headphones, and even a bona fide gadget or two!