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Tesla shares fall on $50 million 1Q loss as research and development costs rise

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FILE - In this March 17, 2014 file photo, Tesla representative John Van Cleave, right, shows customers Sarah and Robert Reynolds, left, and Vince Giardina, a new Tesla all electric car, at a Tesla showroom inside the Kenwood Towne Centre in Cincinnati. Tesla reports quarterly earnings on Wednesday, May 7, 2014. (AP Photo/Al Behrman, File)

DETROIT – Electric car maker Tesla Motors lost $49.8 million in the first quarter as development costs grew compared with a year ago.

Tesla’s loss of 40 cents per share compared with a profit of 10 cents per share in the January-March period last year.

Revenue grew 10 per cent to $620.5 million. Tesla produced a record 7,535 Model S sedans and delivered 6,457 to customers.

Analysts polled by FactSet had forecast a profit of 8 cents per share on revenue of $683.5 million.

Research and development costs jumped 49 per cent to $81.5 million as Tesla prepares to launch the Model X crossover next year and lays the groundwork for a battery factory that is expected to be complete in 2020.

Tesla’s shares fell 6 per cent to $11.98 in after-hours trading.

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