Tesla Motors Reports Q2 Loss of $38.5 million

In its first quarterly earnings report since going public in late June, Tesla Motors posted late Wednesday a second-quarter loss of $38.5 million, compared with a year-ago loss of $10.9 million.

Shares of the Palo Alto, Calif.-based electric car maker fell as much as 3% to $20.60 in after hours-trade. The stock debuted at $17 a share on June 29.

CEO Elon Musk says losses will continue until at 2012 when the company can start producing its mass-market $57,000 Model S.

Losses were attributed to higher research and development costs, especially those associated with the engineering of the Model S.

Tesla makes the $109,000 electric Roadster and is planning to build its new Model S sedan at the former NUMMI auto plant in Fremont.

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