Tesla Plunges Despite Earnings Beat

Updated from 4:33 p.m. to include information about currency gain in Q1.

NEW YORK (TheStreet) -- Tesla Motors (TSLA) shares plunged after the electric car manufacturer posted first-quarter results that were worse than expected.

For the first quarter, Tesla earned 12 cents a share on $713 million in revenue, as it delivered 6,457 Model S units. Tesla produced 7,535 Model S units during the quarter, but was only able to deliver 6,457 due to the number of cars in transit to both Europe and Asia. The company said non-GAAP gross margins were 25.4% for the quarter, slightly above the 25.2% it reported in the fourth quarter. Tesla generated $61 million in cash flow from operations during the quarter. 

Analysts surveyed by Thomson Reuters were expecting Tesla to earn 10 cents a share on $699.09 million in revenue.

Tesla did note that it received a $6.7 million net gain in a favorable foreign currency, aiding results.

"The average selling price of Model S remained strong," CEO Elon Musk said in the letter to shareholders. "Automotive revenue included $15 million of Toyota powertrain sales and almost $12 million of regulatory credit sales, but no zero emission vehicle (ZEV) credit sales as expected."

Shares of Tesla dropped in after-hours trading, falling 7.7% to $185.81.

The company ended the quarter with $2.6 billion in cash and marketable securities, due in large part to the $1.8 billion convertible bond offering done in February.

Tesla noted that research and development (R&D) expenses were $68 million on a non-GAAP basis and $82 million on a GAAP basis, due in part to Model X engineering work acceleration, and "efforts continued to adapt Model S for growing international markets."

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