Manufacturing Woes Deepen Tesla Loss

Electric car maker Tesla Motors Inc. posted a net loss of $90 million for the fourth quarter of last year compared with an $82 million loss in the same period of 2011.

The Palo Alto, Calif.-based company's revenue soared to $306 million in the October-December period from $39 million a year earlier. Tesla sold 2,400 vehicles, nearly all of them the new Model S electric sedans.

Quarterly operating expenses jumped 20% year over year to $115 million. The company attributes the increase to higher manufacturing costs and supply-chain inefficiencies.

For the full year, Tesla's net loss deepened to $396 million from $254 million in 2011. The company cites higher R&D expenses and expansion of its dealer network and charging infrastructure.

Revenue doubled to $413 million in 2012, and sales grew to 2,650 vehicles. Tesla says Model S volume was curtailed by supplier problems that hampered production after the car's launch in June.

The company expects to report a small operating profit in the current quarter and hopes to post a net profit in April-June period at least a quarter sooner than it previously forecast.

Tesla aims to sell 20,000 Model S cars this year, including 4,500 units in the January-March period. The company had 15,000 reservations for the car at year-end. Tesla plans to begin leasing in the second half.

The Model S is scheduled to go on sale this summer in Europe and later this year in Asia. Tesla intends to boost its global dealer network from 32 outlets to 52 this year.