Tesla Loss Widens, But Model S Output Accelerates

Tesla Motors Inc. reported a $111 million net loss in July-September this year compared with $65 million in the same period of 2011.

Third-quarter sales fell 13% to $50 million in the quarter. Auto revenue grew 16% as the company sold the first 250 of its new $57,400 Model S electric sedans. But revenue from developing electric powertrain systems for other carmakers dwindled to $81,000 from $15.6 million a year earlier.

Palo Alto, Calif.-based Tesla began producing the Model S in late June. Within a month, the company expects to double weekly output to 400 units, thus achieving its goal of an annual production rate of 20,000 vehicles.

Tesla expects to deliver 2,500-3,000 Model S cars in the current quarter. The company had originally predicting it would sell 5,000 of the new EVs this year.

Tesla ended the quarter with $109 million in cash and has since raised an additional $222 million. The company expects to achieve positive cash flow by year-end.

Tesla confirms its 2012 revenue outlook of $400 million-$440 million. The company slashed its earlier forecast of $560 million-$600 million to that level in September because of the slow Model S production ramp-up.