Tesla beats expectations, but shares drop
The electric car company shipped more vehicles than it expected to during the first quarter.
Tesla shareholders were a difficult bunch to please, as Tesla reported earnings that beat expectations Wednesday.
It earned $17 million during the first quarter, or 12 cents per share. Analysts polled by Thomson Reuters were looking for the electric car maker to report 10 cents a share. Revenue was up 27% compared to a year ago, a higher jump than what analysts expected.
Shares of Tesla dropped more than 6% in after hours trading.
Tesla produced and delivered more vehicles than it expected to during the first quarter, which ended March 31. Still, it delivered fewer cars than it produced in the quarter, citing time consuming delivery logistics to Europe and Asia where it is expanding its business.
Related: Tesla's U.S. sales may be cooling off
Despite the logistical issue, Tesla said it still expects to meet its goal of delivering 35,000 vehicles worldwide this year. That's a 55% jump over the number of vehicles delivered the year before.
The company has high expectations for expanding its customer base in Europe and as it enters the Chinese market. The first Tesla cars were delivered to China last month, the company said in its release.
Although CEO Elon Musk is anticipating rapid growth, the company is still a tiny niche player compared to other more established automakers. It has only one model, the Model S, which starts at $69,000. 
First Published: May 7, 2014: 5:05 PM ET
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