Tesla CEO Elon Musk said the electric-car company is on the road to profitability despite posting a bigger-than-expected loss in the latest quarter.
“We have high confidence we will have a profitable first quarter,” Musk said in a conference call yesterday with analysts and investors. “We’re halfway through the first quarter, and we can say we’re confident.”
His reassuring remarks came after Tesla posted a wider loss in the fourth quarter as high production costs continued to outpace demand.
The loss hit $89.9 million, compared with $81.5 million a year ago.
Excluding some costs, the loss was 65 cents a share, more than the 53-cent loss analysts had forecast.
Tesla shares dropped nearly 6 percent in after-hours trading, to $36.27, on the earnings report. Earlier, the stock closed at $38.54.
The Palo Alto, Calif., carmaker missed bottom-line expectations despite revenue gains that beat estimates. Revenue rose to $306.3 million, topping expectations for $298 million and well above $39 million a year ago.
The earnings report caps a rather rough ride for Musk, who got into a dust-up with the New York Times over a scathing review of Tesla’s Model S sedan that cast doubt on its ability to perform in colder climates.
Earlier this week, the newspaper’s public editor, Margaret Sullivan, appeased Musk by finding that the reporter exercised poor judgment and took sloppy notes during his test drive.
Yesterday, Tesla said it plans to deliver about 20,000 of its high-profile Model S units in 2013, or roughly 10 times its deliveries in all of 2012. The Model S is Tesla’s affordable electric sedan and sells for between $52,400 and $87,400.
In a letter to shareholders, Musk said the company plans to start the year with about 4,500 Model S deliveries in the first quarter after giving the manufacturing team the first week of the year off “to celebrate their accomplishments during 2012.”
Tesla expects to be “slightly profitable” in the first quarter, excluding non-cash option and warrant-related expenses, due to “operational and manufacturing efficiencies” as well as lower research and development expenses.
During the phone call, Musk also said that he is “highly confident” Tesla will also be profitable in the second quarter “and subsequent quarters, too.”