Tesla Loses $49.8 Million; Higher Costs Are Blamed
Via NYTimes
Tesla Motors reported Wednesday that it lost $49.8 million in the first quarter as the electric carmaker accelerated the development of its new crossover vehicle and made improvements to its Model S sedan. Tesla said it produced 7,535 Model S sedans during the quarter and delivered 6,457 to customers, but higher development costs led to the loss. The company also said California was now in the running for a $5 billion battery factory it plans to build. Previously, the company was considering only Arizona, New Mexico, Texas and Nevada for the factory, which is scheduled to begin producing lithium-ion batteries for Tesla’s Fremont, Calif., car factory in 2017. For the first quarter, Tesla posted a loss of 40 cents a share, compared with a profit of 10 cents a share a year earlier. Revenue grew 10 percent to $620.5 million in the latest period. Excluding stock-based compensation and accounting for leasing, Tesla posted a profit of 12 cents a share on revenue of $713 million. Analysts polled by FactSet had forecast a profit of 8 cents a share on revenue of $683.5 million. Tesla expects to deliver 7,500 Model S sedans in the second quarter, and reiterated its plan to sell more than 35,000 cars this year.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →