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Tesla posts 2Q loss, prepares Nevada factory site

Published on NewsOK Modified: July 31, 2014 at 6:25 pm •  Published: July 31, 2014

PALO ALTO, Calif. (AP) — Electric car maker Tesla Motors widened its loss in the second quarter as it prepared for the launch of a new SUV and started work on a massive new battery plant.

Tesla said it started preparing a site for the factory outside Reno, Nevada, last month. But the company is still considering sites in California, New Mexico, Arizona and Texas, and won't make a final decision for several months.

"Before we go to the next stage of pouring a lot of concrete, we want incentives there that make sense and are fair to the state and Tesla," Musk said.

Palo Alto, California-based Tesla reported a loss of $61.9 million, or 50 cents per share, compared with a loss of $30.5 million, or 26 cents per share, in the same quarter a year ago.

Tesla said it spent more on engineering for its Model X SUV, which is scheduled to go into production early next year. Tesla is also building a new final assembly line and making other adjustments so it can build both its Model S sedan and the Model X at the same factory in Fremont, California. It plans to close the plant for two weeks in the third quarter, but says customer deliveries won't be affected.

Tesla CEO Elon Musk said the company expects to be able to build 100,000 vehicles annually by the end of next year, up from 35,000 this year. He said production will likely be evenly split between the Model S and the Model X.

Tesla could build up to 200,000 vehicles per year with its current battery supplies, Musk said. But to reach 300,000, the company needs the $5 billion battery plant it's planning to build over the next three years.

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