Tesla shares down after electric car maker posts losses as Elon Musk says more cash needed

Shares of Tesla Motors fell about 6 per cent on Wednesday after the electric car maker posted a wider quarterly loss and said it may raise more cash to offset heavy spending on expanded production.

A recently negotiated credit line can be extended from US$500 million to US$750 million and should be enough to cover planned investments in California and Nevada factories, Chief Financial Officer Deepak Ahuja told analysts on a conference call.

But "there may be some value" in raising additional funds for "risk reduction," Chief Executive Elon Musk added. He declined to elaborate. Tesla may not be cash-flow positive until early 2016, Ahuja said. Musk’s previous estimate was the end of this year.

Tesla’s new storage battery business could generate revenue of $400 million to $500 million in 2016, and "a few billion dollars" in 2017, Musk said on Wednesday.

Tesla lowered its full-year sales forecast to a range of 50,000 to 55,000 cars. Last year, Musk had forecast sales of 60,000 cars in 2015, but cut that earlier this year to 55,000. He forecast vehicle sales next year of 83,000 to 93,000.

Tesla’s stock fell to $254 in extended trading, after closing up 1.4 per cent at $270.13. It has swung widely over the past 12 months, from a low of $181.40 to a high of $291.42.