Revenues, Net Loss Both Climb for Tesla

PALO ALTO, CA  – Tesla Motors Inc. released preliminary financial results for 2011’s first quarter, highlighting revenues of $49 million -- a 35-percent increase from the $36.3 million reported in the prior quarter. However, net loss for the quarter was $48.9 million, as compared to $51.4 million in the previous quarter.

The quarter's net loss excluding charges related to stock-based compensation and the change in fair value of outstanding warrants was $41.6 million, Tesla reported.

The rise in revenue was tied to the company’s delivery of battery packs and chargers for Daimler and Toyota, while the increase in net loss was related to Tesla’s production costs in preparation for its rollout of the Model S electric-powered sedan.

Tesla delivered a record number of production battery packs and chargers for both Daimler’s Smart fortwo and A-Class vehicles for the fourth quarter in a row. Daimler increased its total orders for the Smart fortwo electric drive components from 1,800 to 2,100 sets. All of these will be delivered in 2011.

Tesla said it completed the initial milestones for the development of the powertrain system for the Toyota RAV4 EV and remains on schedule for the completion of the development portion of the program. The powertrain system includes a battery, power electronics components, motor, gearbox and proprietary software.

“The continued performance of our Roadster business and growing contributions from our component supply and development programs for the Daimler Smart fortwo, Daimler A-Class and Toyota RAV4 EV produced quarterly revenue more than double of that achieved in the same quarter of last year,” said Elon Musk, CEO of Tesla Motors. “In addition, our Model S alpha build proceeded as scheduled during the quarter. In fact, our engineering and manufacturing teams have now completed the construction of all of our Model S alpha vehicles, having finished the final alpha in April. These vehicles are successfully undergoing the planned cold weather brakes testing, ride and handling evaluation, safety validation, electrical integration, and noise, vibration and harshness evaluation.”

Tesla will continue testing the Model S this quarter, Musk said, with a particular focus on durability and systems integration as the company prepares for beta build later this year.

“Overall, we remain on track for first customer deliveries of the Model S in mid-2012,” Musk added.

Meanwhile, Tesla’s facility in Fremont, Calif., remains busy. The company has started equipment testing in carefully controlled manual modes of operation in both stamping and plastics shops, with robots and other automation equipment scheduled for installation later this year. Installation of the hydraulic press line remains on schedule for manual operation in the second quarter.

Tesla has now received over 4,600 reservations for the Model S. The 300-mile version of the Model S will be the first version to be delivered to customers in mid-2012, the automaker said.

In addition, Tesla has now delivered more than 1,650 Roadsters around the world. Roadster owners have driven almost 11 million miles. In April, Tesla opened its first interactive store in the Santana Row retail center in San Jose, Calif.

Tesla Motors will kick off its Drive Change Electric Roadster Tour on May 14 in Colorado Springs. Special test drive events will be offered from Seattle, Wash., to Naples, Fla. For more details, visit http://www.teslamotors.com/events.