PALO ALTO, Calif. – Tesla losses grew in the first quarter, blunting momentum as the electric automaker moves to reach a broad, new market with a lower-cost sedan.
The company topped analyst expectations for revenues but posted higher-than-expected losses. Revenues grew to $2.7 billion, up from the $1.1 billion posted during the same period last year.
Tesla reported first-quarter losses of $330 million, an increase of 17 percent from the same quarter last year. Tesla posted a net loss of $397 million, or $2.04 per share. Analysts predicted a $292 million loss, or about $1.17 per share.
Tesla stock dropped about 2.5 percent in Wednesday trading.
Karl Brauer, executive publisher for Autotrader and Kelley Blue Book, said the company is entering a major transition. The automaker is expected to bring its lower-cost Model 3 to customers this year.