Tesla Motors, the California-based luxury electric automaker, has reported recently it incurred a first quarter loss that is larger than during the same period last year, but kept its goal of hitting another delivery record for the full year.
Investors seemed satisfied with the prospects of the youngest publicly traded US carmaker, with the share son the rise following the first quarter financial earnings announcement that saw the losses pressuring the prospective earnings margins of the company. Tesla announced its adjusted net loss was 36 cents a share for the first three months of the year, without certain costs, down from earning 14 cents a share during the first quarter of 2014. The company’s cash reserves have shrunk from almost two billion dollars at the end of last year to $1.5 billion after the quarter ended. Billionaire entrepreneur and co-founder Elon Musk, the firm’s chief executive officer said in a letter to shareholders the company will seek to spend $1.5 billion to boost production capacity, acquire the necessary production tools for the upcoming Model X crossover and finish the build of its battery Gigafactory, along with other facilities.
Tesla also reiterated its plans to start the sale of the long-awaited Model X sport utility vehicle sometimes late during the third quarter – a model seen crucial for Tesla to achieve its proposed sales threshold of 55,000 units for the year. The first quarter deliveries of the Model S luxury electric sedan reached 10,300 units – jumping 55 percent from the same period last year and the forecast for second quarter sales ranges between 10 and 11,000 units.