Tesla revenues boosted as electric car orders rise

Tesla cars Image copyright Getty Images
Image caption Tesla is aiming to deliver 55,000 of its Model S and Model X cars this year

Electric car maker Tesla has reported better-than-expected revenue growth as sales of the firm's cars continue to grow.

Tesla said it manufactured 11,600 cars in the first three months of 2015, 1,000 more than it had been projecting.

That led to revenues of $893m (£586m), a 52% increase from a year earlier.

However, losses widened to $154m from $49.8m a year earlier, reflecting continued investment in research and new manufacturing facilities.

Tesla said it planned to increase production by about 12% and manufacture 12,500 cars in the second quarter of 2015, but warned that a strengthening dollar would continue to hit its income.

The carmaker said it would increase its prices by 5% in Europe to try to offset that loss.

After admitting earlier this year that its sales in China had been less than expected, Tesla said that it had seen "encouraging signs" that orders would "return to growth" in that market.

Globally, the company said it was still aiming to deliver 55,000 of its Model S and Model X cars this year.

Tesla added that it was still on track for the launch of its battery factory - known as the Gigafactory - in the US state of Nevada in 2016.

Last week, Tesla announced it would manufacture batteries for home electricity use, in addition to those for its cars at the facility.

Shares in the firm fluctuated in trading after US markets had closed, rising by nearly 5% before declining.

Correction, 8 May 2015 : An earlier version of this story incorrectly stated that Tesla's losses had narrowed in the quarter.

Related Topics

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites