May 04--Tesla Motors Inc. reported a larger first-quarter loss compared with a year ago Wednesday but the report nearly was overshadowed by news of the planned departure of two of the company's key manufacturing executives.
The electric car maker also said it has ramped up production of its new Model X sport utility vehicle, whose prior delays contributed to the financial losses.
Tesla's first-quarter loss using standard generally accepted accounting practices was $282.3 million, compared with a loss of $154.2 million a year earlier.
Sales rose 22% to $1.15 billion from $940 million.
Tesla prefers to focus on its non-GAAP financial results, which are adjusted for employee stock compensation, leasing factors and other items, and those results were slightly better than analysts expected.
The automaker's non-GAAP loss in the quarter ended March 31 was $75.3 million, or 57 cents a share. Analysts polled by FactSet Research Systems Inc. had forecast a loss of 60 cents a share.
Earlier in the day, Palo Alto-based Tesla confirmed that Greg Reichow, vice president of production, and Josh Ensign, vice president of manufacturing, were leaving the automaker.
Those departures, coming just as Tesla is gearing up production of the Model X and planning manufacturing for its upcoming Model 3, unsettled investors and drove Tesla's stock price down sharply.
The stock lost $9.76 a share, or 4.2%, Wednesday to close at $222.56, and it's now tumbled 16% since reaching $265.42 on April 6.
In addition to the Model X, Tesla builds its mainstay Model S sedan and a month ago it unveiled the Model 3, a lower-cost sedan that's expected to arrive in late 2017 with a base price of $35,000.
Reichow and his team "deserve a lot of credit for building an all-new manufacturing organization from the ground up and for making Model S and Model X a reality," Tesla Chief Executive Elon Musk said in a statement.
"We're confident that with the strength of the team, high-quality manufacturing at Tesla will continue," Musk said.
Tesla said Reichow was taking a leave of absence "so that he can have a well-earned break" and would remain at Tesla "as long as necessary until his successor is on board." Tesla didn't comment on the circumstances around Ensign's departure.
Tesla said its first-quarter production totaled 15,510 vehicles, which trailed expectations due to parts shortages and other production glitches with the Model X. The shipments include 12,851 Model S vehicles and 2,659 Model X vehicles.
"We are making significant progress in increasing production," Tesla said, adding that "continuing to ramp high-quality production is the top priority at Tesla right now."
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