Tesla Motors Inc (NASDAQ:TSLA)’s revenue for the fourth quarter of 2012 increased by 500%. Tesla Motors Inc (NASDAQ:TSLA)’s revenue increased from $50.1 million in the prior quarter to $306 million in Q4. The result beats the $300 million consensus revenue estimates. However, on an adjusted basis EPS came in at (0.65), which disappointed investors who expected ($0.58). Shares are down over 7% in after hours trading on the results.

Tesla Motors

Tesla Motors Inc (NASDAQ:TSLA) said it delivered approximately 2,400 models of S vehicles during the quarter. According to the company, the increase of its revenue for the quarter was due in part to the completion of various milestones under its Mercedes-Benz B-Class EV program.

Tesla Motors stated that it continued to deliver full electric power trains for Toyota Motor Corporation (NYSE:TM)’s RAV4 EV program at a steady pace.

For the full year 2012, Tesla Motors Inc (NASDAQ:TSLA) said its revenue was $413.25 million compared with $204.24 million in revenue a year earlier.

According to the car manufacturer, its net loss improved from $110.8 million (-$1.05 per share) in the third quarter to the current $89.93 million (-$0.79 per share). Analysts expected the company to deliver a net loss of -$0.52 per share. Tesla Motors Inc (NASDAQ:TSLA) had a total of $254.4 million in losses for FY2011 compared with its $396.2 million losses for FY2012.

Tesla Motors said that the company is experiencing early-state cost inefficiencies caused by several factors including lower fixed cost absorption, higher logistics costs and manufacturing inefficiencies during initial production ramps. The company said, “Elevated costs during the initial ramp phase of a new factory and a new vehicle, as well as subsequent efficiency improvements, are typical in the automotive industry and consistent with our own past experience with the Roadster.”

During the quarter, the company said its total gross margin increased from -17 percent to nearly 8 percent, due in part to higher production of the Model S vehicles. According to Tesla Motors Inc (NASDAQ:TSLA), the company will now focus on cost reduction. Tesla Motors expects it gross margin to continue to grow and achieve a 25% target by the end of the year.

Tesla Motors Inc (NASDAQ:TSLA) expects to deliver 20,000 model S vehicles this year. The company also expects to deliver 4,500 units during the first quarter. The company said it would start to deliver model S vehicles in Europe and Asia this summer and by the end of the year, respectively.

The conference call for Tesla will being shortly. Investors are expecting some comments about the recent spat between Tesla CEO Elon Musk and the New York Times.