Tesla reports big first quarter loss

Enlarge / Elon Musk. (credit: DAVID MCNEW/AFP/Getty Images)

After two back-to-back quarters of profits, Tesla lost $702 million in the first quarter of 2019, the company announced on Wednesday.

Tesla has been expected to post a loss for the quarter ever since the company admitted earlier his month that it had suffered a big drop in Model S and Model X deliveries. But the quarter’s losses were larger than many Wall Street analysts expected.

Markets weren’t fazed by the negative earnings news. After initially falling about 2 percent, Tesla’s stock price bounced back and is now about where it was when the earnings numbers were released.