* Q2 loss widens to $1/share from 60 cents/share
* Tesla says it can boost production, repay debt
* Production boost "won't require significant capital" -CEO
By Paul Lienert
July 25 Tesla Motors said on Wednesday
it plans to begin repaying by December more than $400 million in
low-interest loans from the U.S. Department of Energy.
The California-based electric-car maker also said it could
boost annual production of its recently introduced Model S sedan
to 30,000 cars or more to meet higher-than-anticipated demand.
Tesla posted a net loss in the second quarter widened as it
wound down sales of its first model, the $110,900 Roadster, and
began ramping up deliveries of the new Model S.
Revenue of $26.7 million was down 54 percent from $58.2
million a year earlier.
Tesla's loss was $105.6 million, or $1.00 per share,
compared with a net loss of $58.9 million or $0.60 per share a
Analysts had expected a per-share loss of $0.94 and revenue
of $30.9 million.
The fledgling car maker, based in Palo Alto, California, in
June began selling premium versions of the four-door Model S, at
prices ranging up to $105,400.
CEO Elon Musk, in a conference call with analysts late
Wednesday, said Tesla delivered 10 Model S sedans to customers
in the quarter. The top-of-the-line Model S Signature Series, he
said, has been "sold out for months," and there is a waiting
list of 10-11 months for other variations of the car.
A lower-priced version of the Model S, starting at $57,400,
will be added this fall.
Musk said the company still expects to sell 5,000 Model S
sedans by year-end and at least 20,000 next year, with
provisions to add a second shift and increase annual production
capacity to 30,000 to meet demand.
"That won't require a significant capital investment" to
increase the production rate, Musk said.
However, the company is considering raising "a small amount
of money" to use as a cash cushion and to help fund development
of new models, including the Model X crossover utility vehicle
in 2014 and a smaller sedan code-named Gen III in 2015.
In the meantime, Tesla continues to phase out the older
Roadster, which now is only offered outside the United States.
The company said it sold 89 Roadsters in the second quarter,
with about unsold 140 cars left in inventory, and expects to
close out sales by the end of the year.
Tesla said automotive sales in the second quarter totaled
$22 million, with another $5 million in revenue from development
services, primarily for Daimler AG. Tesla is
supplying batteries for Daimler's Smart Elecric Drive, and
helped develop Toyota Motor Corp's RAV4 EV.
Tesla, which was backed initially by a group of Silicon
Valley venture capital firms, raised $226.1 million in an
initial public offering two years ago. Its stock closed
Wednesday at $28.95, down 2.98 percent.
In addition, Tesla qualified three years ago for $465
million in low-interest loans from the U.S. Department of
Energy. On Wednesday, the company said it drew down $71 million
from the DOE loan facility in the second quarter and intends to
draw the remaining $33 million "in the next few months."
Tesla on Wednesday maintained its full-year revenue guidance
of $560 million to $600 million, well above analysts' consensus
estimates of $480 million.