Tesla Motors announced that the electric car company posted a first quarter loss, but believes the second quarter will see a slight uptick in profit.
Tesla reported a $49.8 million loss, but did note revenue was up 10 percent from a year before to $620.5 million, according to The Wall Street Journal. The loss stemmed from higher research and development costs, which rose from $54.9 million to $81.5 million.
The electric car company believes that those costs will climb another 30 percent in the second quarter. CEO Elon Musk said in a letter to shareholders Tesla will be building a "gigafactory," to increase production of batteries.
The Los Angeles Times reports Tesla also reported increased car production up to 7,535 Model S sedans, with 6,457 of those shipped to customers.
Unfortunately, Tesla also reported that they were delaying the launch of the Model X until likely next summer. Styling is said to be complete, the company now just needs to get the assembly tooling completed by suppliers.
Gartner Inc analyst Thilo Koslowski noted that Tesla is missing out with the delay. "Right now is a golden opportunity for Tesla to conquer the market, but they need more models. The ideal condition of not having competitors to worry about can't last forever."
Shares of the Silicon Valley company dipped 3 percent after the financial report was released.