Tesla posts nearly $300 million loss in second quarter

PALO ALTO, Calif., Aug. 4 (UPI) -- Tesla Motors Inc. posted a nearly $300 million loss in the second quarter on Wednesday, the latest blow to the electric-car maker struggles with a government safety probe, a merger and deadline to get their latest model out on time.

The $293.2 million loss is the latest quarterly loss for the company and was far worse than analysts expected. Overall revenue did rise 33 percent to $1.27 billion from last year but operating costs also rose 34 percent to $512.8 million.

Tesla's continued backlog in production due to what CEO Elon Musk said was a parts shortage and what he acknowledged was "hubris in adding far too much new technology" to the Model X SUV.

The company is still trying to meet a 2018 release for its new Model 3 sedan, the first designed for the mass market.

Musk told analysts that problems with the Model X have mostly been fixed and "I feel we're in a good place at this point."

He also said Tesla is still on track to ship about 50,000 cars the remainder of this year and another 500,000 next year.

Tesla lost a $1.06 a share, the company said. On the news, stock fell less than 1 percent to $225.60.

"The key is that Tesla reiterated 500,000 vehicles in 2018," said Dougherty & Co. analyst Charlie Anderson. "They spent more money, which is why EPS was down. But the spending was on R&D. This is a company that is continuing to invest in the future."