Tesla Motors Inc. (TSLA) reported a net loss of $31 million in
the second quarter, but the Palo Alto, Calif., electric-car maker
improved gross margins, increased production and beat most Wall
Street analysts' expectations.
Tesla shares, which had closed Wednesday down 5.6% at $134.23,
jumped 11.5% to $149.85 in after-hours trading.
Tesla said it lost $11.79 million from operations, before
interest and taxes, during the quarter. Revenue declined by more
than $150 million, mainly because the company had to defer some
revenue associated with cars delivered under a new financing
program for Model S sedans designed to mimic a lease. The hybrid
purchase/lease financing accounted for 30% of the auto maker's
sales volume in the April-to-June period.
Revenue for the quarter was $405 million, down from $561 million
in the first quarter. Deliveries increased by 5% from the first
quarter to 5,150 cars.
Investors focused on other numbers in Tesla's report. Tesla
Chief Executive Elon Musk, in a letter to shareholders, affirmed
that the company can deliver about 21,000 cars this year and said
it is on track to achieve 25% gross margins for the year.
In the second quarter, it cost Tesla about 22% less to build a
car than it received in revenue. That gross margin was up from 17%
in the first quarter.
Tesla has been among the hottest stocks in the U.S. since
posting an $11 million net profit in the first quarter of 2013.
Investors have gobbled up shares in the company as the reception to
its first full-line vehicle has been strong, and some believe the
company could revolutionize the car industry.
Write to Mike Ramsey at michael.ramsey@wsj.com
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