Tesla Loses $35 Million and Shares Rally 19 Percent
Stock prices for Electric vehicle manufacturer Tesla Motors rose 19 percent today on heavy trading. Interestingly, this increase is in response to Tesla’s reported third quarter earnings, which marked a loss of $34.9 million. Wall Street analysts had been predicting a larger loss and were encouraged by the announcement.
Much of Tesla’s costs last quarter were used in the development of its new electric vehicle, the Model S. The Model S will be an electric sedan with a more affordable sticker price than the Tesla Roadster, which is priced at $101,500.
Meanwhile, sales of Tesla’s iconic Roadster fell by about half last quarter to 151 units.
Tesla is aiming for a mid-2012 launch of the Model S, which is being assembled at a newly upgraded plant in Fremont, CA.
Despite Tesla’s losses, the stock price of the company continues to remain strong. Much of this is due to recent collaborations Tesla has pursued with major car manufacturers, such as Toyota, as well as market confidence in the company founder, Elon Musk.