Tesla has announced second quarter 2014 revenue of $769.3 million, compared to $405.1 million in the second quarter of 2013. That’s nearly a 90% increase. and much of the credit for the higher income goes to the more than 1,000 Model S cars delivered to Chinese customers during April, May and June.
Tesla still reported a net loss of $62.9 million for the second quarter, due to capital spending on its proposed Gigafactory and conversion of its assembly line for production of the Model X SUV. However, the electric automaker also delivered 7,579 Model S sedans during the second quarter while building 8,763 vehicles, putting it on track for over 35,000 deliveries this year.
Tesla has also significantly increased research and development spending from $52.3 million last year to $107.7 million in the second quarter of 2014. Much of that increase is due to development of the newly announced mid-level sedan, the Tesla Model III, due out sometime in 2017.
What does all that mean for investors? Simply that sales are going well and the company is plowing its earnings back into future products and development. A firm in financial trouble usually responds by slashing R&D spending, so the fact that Tesla is increasing funding for R&D should be reassuring news for investors. There are still plenty of potential pitfalls ahead, but so far so good for Tesla.
Source: Gas2
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