UPDATE 2-A123 posts loss, revenue beats Wall St; shares up

* Q3 loss/share $1.78 vs $2.06/share loss a year ago

* Q3 revenue $23.6 mln vs $19.2 mln Wall Street estimate

* Shares rise nearly 3 pct after-hours (Recasts first paragraph, adds analyst comment, background; updates shares)

LOS ANGELES, Nov 10 (Reuters) - Battery maker A123 Systems Inc (AONE.O) posted revenue that beat Wall Street estimates as the company reported on Tuesday its first quarterly results since going public, sending its shares up nearly 3 percent.

A123, which develops batteries for electric cars and plug-in hybrids and works with Chrysler and General Motors Co [GM.UL], reported third-quarter revenue of $23.6 million, up from $22.9 a year ago, topping analysts' average view of $19.2 million, according to Thomson Reuters I/B/E/S.

The company's net loss in the quarter was $22.9 million, or $1.78 per share, compared with $18.9 million, or $2.06 per share, a year ago.

"I don't think people are expecting any profit from this company for some time. Investors will be pretty forgiving in terms of expense control," Pacific Crest Securities analyst Ben Schuman said, adding that the better-than-expected revenue lifted the shares.

The company won a $249.1 million grant in August from U.S. stimulus funds for companies that make advanced automotive batteries and is in talks with the U.S. Department of Energy for $250 million in loans to support battery manufacturing in the United States.

A123 shares rose nearly 3 percent to $18.50 in after-hours trading after closing up at $17.98 on the Nasdaq. (Reporting by Laura Isensee; Editing by Andre Grenon, Bernard Orr)