Tesla Loss Widens, But Shares Gain 5% On Outlook

(RTTNews) - Electric car maker Tesla Motors Inc. (TSLA), Wednesday reported a first-quarter loss that widened from last year, hurt largely by higher operating costs which offset an increase in revenues. Loss for the quarter were narrower than what Wall Street expected, while revenues came in line with estimates.

Shares of the company gained over 5 percent in extended hours after the company reaffirmed its delivery target for 2016.

Palo Alto, California-based Tesla reported first-quarter loss of $282.3 million or $2.13 per share, wider than last year's loss of $154.2 million or $1.22 per share.

Excluding items, adjusted loss for the quarter was $0.57 per share, compared to $0.36 per share last year. On average, 16 analysts polled by Thomson Reuters expected loss of $0.58 per share for the quarter.

Tesla's revenues for the quarter improved to $1.15 billion from $939.9 million last year. Adjusted revenues for the quarter rose to $1.60 billion from $1.10 billion. Analysts had a consensus revenue estimate of $1.60 billion.

Tesla said it delivered 14,810 vehicles in the first quarter. Tesla manufactures two all-electric cars-- the Model S sedan and the Model X, which was released last September. The company has also unveiled its low-cost electric variant Model 3 early this year, which is planned to ship in 2017.

Tesla said Model 3 received a "overwhelming demand," with first week reservations reaching over 325,000 implying about $14 billion in future sales. "We are on track to achieve volume Model 3 production and deliveries in late 2017," CEO Elon Musk said.

Moving ahead, Tesla affirmed its plans to deliver 80,000 to 90,000 new vehicles in 2016. Tesla expects to produce 20,000 vehicles during the second quarter.

Tesla also said it will start manufacturing 500,000 vehicles in 2018, two years earlier than previously planned, helped by the demand for Model 3.

TSLA closed Wednesday's trading at $222.56, down $9.76 or 4.20%, on the Nasdaq. The stock, however, gained $11.69 or 5.25% in the after-hours trade.