Shares of Tesla Motors (TSLA) fell to $223.30 at the close yesterday in New York and have declined nearly 8% in pre-market trading Friday after the electric car maker reported a wider loss in the second quarter, as it continues to invest in production capacity and new models.
Tesla said Thursday it posted a 2Q’14 loss of $61.9 million, or $0.50/share, compared to $30.5 million, or $0.26/share, in the year-ago period. On a non-GAAP basis, EPS fell to $0.11 from $0.20. While Tesla blew past Wall Street estimates, earning $0.07 per share more than the consensus forecast of $0.04, on a GAAP basis the co.’s loss nearly doubled the year-ago number.
Tesla also announced that it “broke ground” for its large-scale battery manufacturing plant outside Reno in June. But despite the work, it said it continues to evaluate sites for the so-called “Gigafactory” beyond the one in Nevada in California, Texas, New Mexico and Arizona.
“In June, we broke ground just outside Reno, Nevada on a site that could potentially be the location for the Gigafactory,” CEO Elon Musk wrote in a statement on the company’s website. “Consistent with our strategy to identify and break ground on multiple sites, we continue to evaluate other locations.”
Musk also said that the final site for the first Gigafactory “will be determined in the next few months, once we have full visibility and agreement on the relevant incentives and processes for enabling the [manufacturing battery plant] to be fully operational to meet the timing for Model 3.”
In the second quarter, Tesla built a record 8,763 Model S sedans and delivered a total of 7,579 vehicles compared to 6,457 in the first three months of the year. Tesla affirmed its target for 35,000 deliveries in fiscal 2014 but noted it has been “unable to keep pace with increased demand” in North America and Europe. The company said it plans to deliver about 7,800 cars in the third quarter.
Tesla shares dropped to $215.82 in pre-market hours, losing more than 7.50% of their value. The stock however, has been on a tear since fiscal 2013 spiking about 350%. Ticker has continued its ascent this year, gaining 72.58% in the last 52 weeks, and more than 48% year-to-date.