Tesla Motors Inc, the California-based electric carmaker that builds the Model S luxury electric sedan, has announced that it failed to achieve sales targets and incurred a loss of $107.6 million during the fourth quarter of 2014.
The luxury electric manufacturer, an investor sweetheart for years, has recently had to deal with numerous setbacks and struggled in terms of production and delivery rates in certain regions. For the quarter, Tesla said the company now loses 86 cents per share, compared with the same period of 2013 when the loss was smaller – at 13 cents per share, or $16.3 million. On the other hand, the company’s revenue during the same period soared from $615.2 million a year ago to $956.7 million during the fourth quarter of 2014. Tesla Chief Executive Elon Musk also announced that the carmaker failed to achieve its forecasted sales target – which himself set back in July 2014 at 13,000 Model S units – instead delivering 9,834 vehicles during the quarter.
Tesla’s operating expenses in the quarter climbed from $169.9 million in 2013 to $336.5 million last year, due to increased spending on setting up the global sales network and the development of the upcoming Model X crossover. North American sales were level, at around 17,400 units – around 55% of the total production of 35,000 autos for the year (though delays led to only 31,655 cars being delivered). European deliveries rose to 9,500 cars, or about 30 percent of the total production. The Asia Pacific region, including the troublesome China, took the rest of the sales – around 4,750 vehicles.