Tesla posts wider losses due to higher development costs
Despite growth and doubling revenues, California-based startup Tesla Motors’ net loss widened by $19.4 million this year, to a total of $48.9 million.
The company recently entered into supply agreements with Daimler AG and Toyota Motor Corp., to provide battery-packs. It is also readying a former Toyota joint-venture factory in California for production of the Model S electric sedan, which carries an MSRP of $57,400.
Tesla has also been building and marketing the $109,000 Roadster sports car.
“The continued performance of our Roadster business and growing contributions from our component supply and development programs for the Daimler Smart fortwo, Daimler A-Class and Toyota RAV4 EV, produced quarterly revenue more than double of that achieved in the same quarter of last year,” Tesla head Elon Musk said in a statement.
Tesla is expecting not to post an annual profit for several years, due to continued outlays capital tied to the rollout of the Model S.
– By: Stephen Calogera
Source: Automotive News