Tesla outlook disappoints, shares drop 7%

Tesla's net revenue in Q1 rose 10% from last year to almost US$621mil, while operating revenue was up 27% at US$713mil.But on a net basis, the company lost US$49.8mil, or 40 cents a share, compared with a profit last year of US$11.25mil - AFP Photo.

DETROIT: Tesla Motors Inc, led by billionaire Elon Musk, on Wednesday offered an outlook for the second quarter that disappointed some investors, sending shares of the electric carmaker down more than 7% in after-hours trading.

Tesla posted a higher-than-expected Q1 operating profit and said its operating automotive gross margins in the current quarter would increase slightly. S&P Capital IQ analyst Efraim Levy called the outlook a disappointment, saying investors had hoped for something better.