Tesla posted a net loss of $34.9 million in the third quarter

Article by Christian Andrei, on November 10, 2010

In the third quarter, Tesla Motors Inc. posted a net loss of $34.9 million, which is wider than last year’s $4.6 million loss. This is being attributed to higher engineering costs.

Tesla spent $26.7 million in the third quarter for research and development compared to $15.4 million in the second quarter. Nonetheless, the electric carmaker remains upbeat that the development of its new Model S sedan was on schedule.

Revenue has dropped by 31.4 percent to $31.2 million. Tesla anticipates that it will post losses until at least 2012, which is when it will launch the Model S.

It should be mentioned that in the third quarter of 2009, Tesla had only spent $1.3 million on R&D. The reason for the sharp increase in R&D costs is because Tesla is aiming to complete development work on the Model S sedan in time for its planned 2012 launch date.

Tesla is targeting to complete a working prototype of the sedan, which is priced at about $57,400, by the end of the year.

In a conference call, Tesla CEO Elon Musk said that the near term quarterly profitability is “not a particularly meaningful goal” since it aims to spend half a billion dollars over the next nine quarters.

He said that the significant rise in expenses is expected since Tesla will go from producing about 600 units a year to about 20,000 units annually.

Topics: tesla, sales

If you liked the article, share on:


Login or Create new account to add a comment!


Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016
Say hello to the fastest accelerating production car in the world: the new 2017 Tesla Model S P100D. Powered by a 100 kWh battery, this new model basically outruns almost...
by - October 25, 2016
Ever heard of the “Lynk & Co” automotive brand? Well, it is highly likely people haven’t. This is practically because this is new brand created by the joint venture between...
by - October 25, 2016
Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016