Tag archives for Sales & Earnings

Tesla Loses $396.2 Million in 2012, Posts Net Loss In Q4 – Rumor Central

Tesla Loses $396.2 Million in 2012, Posts Net Loss In Q4

The 2012 loss grew some $141.8 million over the company’s 2011 losses, bringing the red ink to a total of $396.2 million. According to Automotive News, “manufacturing and supply chain inefficiencies” were behind the fourth-quarter loss of almost $90 million, which was up by $8.4 million over the same period in 2011.

Indeed, the automaker says much of its red ink stems directly from ramping up production of the Model S sedan, the company’s sole product at this point in time. The company says it is now churning out 400 units a day, and is allegedly on track to build roughly 20,000 copies by the end of 2013.

The negative numbers don’t seem to have placed a damper on Tesla’s outlook.  CEO Elon Musk stated during the company’s earnings call on Wednesday, “We really have a very high confidence that we will have a profitable first quarter, and this is the very first quarter that we have been at our target production rate.” It’s because Tesla has only just gotten up and running with its 400-unit-per-day rate that we don’t have full sales numbers yet; the company is still working through a backlog of orders on the Model S – unsurprising, given how impressed we were when we named the Model S our Automobile of the Year. That said, it still reported sales of 2400 cars in the fourth quarter of 2012 and has grown its international store total to 32. A total of 2650 Model S cars were sold in 2012.

Tesla is aiming to increase its global retail footprint to 52 stores by the end of this year, and also hopes to roll out a leasing program for the Model S and to continue expanding its Supercharger network. Musk stated that the expansion plans will only help to propel the company’s growth, as it currently has “over 15,000″ reservations for the Model S and expect to post a quarterly profit for Q1 of 2013. Ambitious goals, and we’ll have to wait and see how they shake out over the course of 2013.

Sources: Telsa, Automotive News (Subscription required)





By Donny Nordlicht

Tesla Plans on Early Repayment of DOE loans, Re-Files Annual Report – Rumor Central

Tesla Plans on Early Repayment of DOE loans, Re-Files Annual Report

In stark contrast to the woes faced by other upstart plugin auto brands Coda and Fisker, Tesla seems to be resolute and resilient in its business strategy. The company is so confident in its success, that it released a statement on the company blog that it intends to re-pay its Advanced Technology Vehicle Manufacturing loans five years ahead of schedule. This would put the final payment of the loan in 2017, as opposed to the original deadline of 2022.

In the heated political climate surrounding government-subsidized green energy initiatives, the company was quick to point out the that ATVM loans were initiated and approved under the Bush administration, and were completely separate from the federal bailout of General Motors and Chrysler, as well as being the smallest of the ATVM loans granted, the others being Ford at $5.9 billion, Nissan at $1.4 billion, and Fisker at $529 million. Tesla’s loan was for $465 million.

In the blog post, Tesla’s VP of Business Development, Diarmuid O’Connell, said the company expected to show a modest profit in the first quarter of 2013, excluding non-cash option and warrant-related expenses.

The company’s upcoming models were briefly mentioned in the post, including the Model X crossover, and the third-generation model, described as a high-volume, low-price model, sometimes referred to as the “Blue Star.” During its development, the Model S was coined the “White Star” by many automotive media outlets.

However, being a publicly-traded company, Tesla is under the scrutiny of investors and regulators, and announced that its annual report would be delayed due to errors in its filing, according to Bloomberg. Some unpaid capital expenditures from 2011 and 2012 will be re-classified as operating activities in the revised report.

Source: Bloomberg, Tesla




By Edward A. Sanchez

Tesla Model X Delayed Until "Late 2014" – Rumor Central

Tesla Model X Delayed Until “Late 2014″

The Tesla Model X electric crossover won’t start production until late 2014, a major delay as the car was slated to go into production this year. Tesla had initially promised the Model X would debut in late 2013 with “volume” production beginning in earnest by 2014, but now it appears the Tesla factory won’t even start building the crossover until the end of next year.

The Tesla Model X is a three-row crossover with upward-opening “Falcon Wing” doors that is based on the company’s Model S all-electric sedan. It was originally slated to go on sale in limited numbers by the end of 2013, with production ramping up significantly by 2014. In fact, the automaker’s website still indicates that, “Deliveries begin 2014.”

Tesla appears to have quietly delayed the introduction of the Model X by about a year. The company’s latest SEC Filing, which also revealed Tesla will repay government loans early, confirmed the new production date. “We currently plan to start production of Model X in late 2014,” the filing reads. “We currently intend to target an annual production rate of approximately 10,000-15,000 cars per year.”

That means the car probably wouldn’t reach more than a handful of customers until early 2015. The company previously reported it would have total production capacity of 20,000 units in 2013.

Tesla warned in its filing that development of the Model X hasn’t been completed, signaling that production couldn’t start for some time. “The Model X design is not yet finalized and we may be unable to use the adaptable Model S platform to the extent we currently intend,” the filing reads.”We may experience… delays, cost overruns and adverse publicity… We are in the initial design and development stages of Model X. Furthermore, we have not yet evaluated, qualified or selected all of our suppliers for the planned production of Model X.”

A Tesla representative told us, “Tesla has been intensely focused on Model S, its production and product enhancements and believe there is increased volume potential for Model S.  As a result, we are pushing back the development and timing of Model X to 2014. ”

Source: Tesla



By Jake Holmes

Tesla Faces Off Against Texas Dealer Association – Rumor Central

Tesla Faces Off Against Texas Dealer Association

After a contentious and ongoing battle with the Massachusetts dealer association, California-based electric carmaker Tesla is now facing off against the Texas Automobile Dealers Association in a bid to expand its presence in the Lone Star state. Tesla is facing regulatory battles with state dealer associations in several states, Automotive News reports.

Tesla VP of business development, Diarmuid O’Connell has among the highest barriers in the nation for the operation of a factory-owned store. Tesla currently operates two “galleries” in Austin and Houston, but in order to comply with current state franchise law, representatives cannot initiate or complete a sales transaction or deliver a vehicle on-site. Customers must contact a representative in California to complete the sales transaction, as well as arrange their own transport and delivery arrangements. Even in the area of service and warranty work, requests have to be routed through California, which then sub-contracts the work to the service centers in Texas.

To combat the contorted, Goldbergian work-arounds to sell and service vehicles in the state, Tesla is backing a bill in the Texas legislature that would change the states inflexible franchise laws to make it easier to operate factory-owned dealerships and service centers. But the state dealer association has been actively lobbying legislators and has participated in hearings, claiming that the traditional franchise dealer model is the best way to sell and service vehicles. The association is predicting failure of the Tesla-sponsored legislation that would allow them to operate, calling Tesla’s request for an exemption from existing franchise law “arrogant.”

Tesla continues to battle the Massachusetts dealer association with proposed legislation that would change the state’s dealer franchise law. The state’s dealer association is backing its own separate bill thwarting Tesla’s efforts. The one bright spot for Tesla lately has been Minnesota, where the state dealer association has temporarily suspended its pursuit of franchise law legislation that would have prevented Tesla from opening retail outlets in the state.

Source: Automotive News (Subscription Required)




By Edward A. Sanchez

Tesla Model S Sales Exceed Expectations, Low-Range Model Axed

Tesla Model S Sales Exceed Expectations, Low-Range Model Axed

Tesla Motors announced today that it will report profitability for the first quarter, after sales of the Model S electric sedan exceeded expectations. Tesla has sold 4750 units of the car thus far, up from the 4500 units previously planned.

The announcement is good news for Tesla after a disappointing year in 2012, when the company lost almost $400 million. Last year, Tesla sold just 2650 units of the Model S while it ramped up production of the car.

Tesla Model S interior 300x187 image“There have been many car startups over the past several decades, but profitability is what makes a company real. Tesla is here to stay and keep fighting for the electric car revolution,” Tesla CEO Elon Musk said in a statement.

The company also announced two changes to the model lineup. First, Tesla has killed the low-range, 40-kWh version of the Model S. Only four percent of customers asked for the smallest battery, making it financially difficult for Tesla to build that version. Customers will receive the next largest battery pack, with a capacity of 60 kWh, but the car’s software will keep range equivalent to that of the 40-kWh pack unless owners pay for an upgrade.

In addition, Tesla revealed what it calls an Easter egg in the new Model S. Although the hardware to use Tesla’s Supercharger fast-charging network was supposed to be optional, it has actually been included in all versions of the Model S. Customers can simply pay for a software update to “unlock” the function if they need to use the Supercharger network.

Source: Tesla Motors

By Jake Holmes

Tesla Reports First Quarterly Profit

Tesla Reports First-Ever Quarterly Profit

Tesla has reported its first-ever quarterly profit as Model S production hits full swing.

The company said it made about $11 million dollars in the first quarter of 2013. A huge chunk of that came from a bit of accounting magic: Tesla was able to eliminate from its balance sheet some $10.7 million in liabilities relating to its Department of Energy loans. It also benefited from the state of California’s cap-and-trade system, selling some $68 million in zero-emission-vehicle credits to other automakers.

Still, the profit marks a milestone for the start-up company given the enormous costs involved in introducing its first independently developed product. Even when Automobile Magazine named the Model S Automobile of the Year, we cautioned that we weren’t certain Tesla would survive to produce it in significant volumes. Tesla says it built more than 5000 copies of the Model S in the first quarter of 2013, putting it on target for its annual production goal of 20,000 vehicles.

Tesla says demand for the Model S has kept pace with the supply, thanks in part to its new financing deal. Later this year, it will start selling the car outside North America. CEO Elon Musk predicts Tesla can sell 10,000 vehicles per year in Europe and 5000 per year in Asia.

Tesla’s next challenge will be reducing how much it spends building the Model S. Its profit margin on the car is presently a slim five percent. Musk says production costs will continue to fall as Tesla gets better deals from suppliers—a result of higher-volume production—and improves the car’s design.

Tesla’s stock has risen to nearly thirteen percent, to nearly $70 per share, in afterhours trading.

By David Zenlea

Tesla Offers Additional 2.7 Million Shares, Plans to Repay DOE Loan Early

Tesla Offers Additional 2.7 Million Shares, Plans to Repay DOE Loan Early

Tesla has announced it will offer 2,703,027 shares of common stock along with $450 million worth of convertible senior notes that mature by 2018. The money raised from this public offering will primarily be used to pay off Tesla’s Department of Energy loan with interest.

Tesla Model S rear side view 300x187 imageTesla CEO and co-founder Elon Musk will purchase $100 million worth of the shares himself, with $45 million purchased from the common stock offering and $55 million bought directly from Tesla in a private sale. The underwriters will have a 30-day option to purchase up to 405,454 additional shares and $67.5 million worth of convertible notes, which can be converted into cash or shares of Tesla stock when they mature.

Tesla stock ended trading today at $84.84 a share, up significantly from last week’s price in the mid- to high $50 range. The surge in price is attributable to Tesla posting its first quarterly profit, with the company generating $11.2 million net income in the first quarter of 2013.

Though Tesla’s revised financing option may have lead to higher consideration among luxury buyers, the brand is still only selling variations of one vehicle. Whether Tesla can maintain its momentum remains to be seen.

Source: Tesla

By Alex Nishimoto

Tesla Reports 2012 Losses, Expects Positive Q1 2013

Tesla Reports 2012 Losses, Expects Positive Q1 2013

Starting a new car company is hard. Tesla has been finding that out, and it has reported larger losses in 2012 than it did in 2013. It’s not all bad, though – the company is now building 400 Model S cars per day and is on track to produce 20,000 of them this year.

Indeed, the automaker says much of its red ink stems directly from ramping up production of the Model S, the company’s sole product at this point in time. The company says it is now churning out 400 units a day, and is allegedly on track to build roughly 20,000 copies by the end of 2013.

2013 Tesla Model S rear three quarter 1 300x187 imageThe negative numbers don’t seem to have placed a damper on Tesla’s outlook.  CEO Elon Musk stated during the company’s earnings call on Wednesday, “We really have a very high confidence that we will have a profitable first quarter, and this is the very first quarter that we have been at our target production rate.” It’s because Tesla has only just got up and running with its 400-unit-per-day rate that we don’t have full sales numbers yet; the company is still working through a backlog of orders on the Model S – unsurprising, given how impressed we were when we named the Model S our Car of the Year. That said, it still reported sales of 2400 cars in the fourth quarter of 2012 and has grown its international store total to 32. A total of 2650 Model S cars were sold in 2012.

Tesla is aiming to increase its global retail footprint to 52 stores by the end of this year, and also hopes to roll out a leasing program for the Model S and to continue expanding its Supercharger network. Musk stated that the expansion plans will only help to propel the company’s growth, as it currently has “over 15,000″ reservations for the Model S and expect to post a quarterly profit for Q1 of 2013. Ambitious goals, and we’ll have to wait and see how they shake out over the course of 2013.

Sources: Telsa, Automotive News (Subscription required)

By Donny Nordlicht

One Week Later, Tesla Stock Price Falls Below IPO

One Week Later, Tesla Stock Price Falls Below IPO

Despite a number of challenges still to be overcome, electric car-maker Tesla celebrated a triumphant Initial Public Offering that raised $260 million for the fledgling company. Just a week later, though, things have taken a turn for the worse.

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Originally, Tesla had planned to sell 11.1 million shares at $14 to $16 each, but revised its strategy at the last minute and bumped its sale to 13.3 million shares at $17 each, which would earn the company $226 million rather than the $178 million it had originally anticipated. On the first day of trading, the company would actually sell 15.3 million shares and the price of the hot new stock briefly eclipsed $30 before closing at $23.83, still well above their initial offering price and netting the company $260 million in much-needed cash.

Since then, though, the stock has only gone down in value. By the closing bell Tuesday, Tesla shares had dropped below their $17 offering price to $16.11, their fourth day of losses in a row. As of this writing, the share price has slipped an additional five percent to $15.24. In total, the shares have lost over 41 percent of their value since their June 30 closing, completely eliminating their brief 41 percent rally on opening day. The Nasdaq Composite index the stock is listed on, meanwhile, is up two percent today.

“They brought this thing into a market that was not rewarding hype,” Michael Holland, chairman of Holland & Co. told Businessweek. “The stock did get its pop, and now it’s plagued by the reality of the marketplace. The reality of the marketplace is that people aren’t paying for dreams and visions.”

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“The company is a great concept with relatively weak fundamentals,” said Josef Schuster, founder of IPOX Capital Management LLC and manager of the Direxion Long/Short Global IPO Fund.

The falling price of Tesla’s stock could spell trouble for the company, which is planning on using the proceeds from its IPO to fund development of its upcoming Model S sedan as well as a factory to build the car. Nearly caught up with orders for its $109,000 Roadster sports car, the company has been counting on the IPO, a $465 million loan from the U.S. Department of Energy and selling carbon credits and battery packs to other automakers to shore up its finances. The company has never posted an annual profit and posted only one quarterly profit since its founding in 2003. The company’s net loss grew to $29.5 million in the first quarter of 2010, nearly double its 2009 first quarter loss. Tesla is expected to continue to lose money until at least 2012 when the Model S debuts.

The falling stock price is also a serious concern for Tesla’s eccentric CEO, Elon Musk. Shortly before the IPO, it was reported that Musk was essentially broke and living on loans from friends, having sunk his entire fortune into Tesla and his two other start-up companies, Space X and SolarCity. Musk was personally counting on the IPO to replenish his exhausted personal coffers and a falling stock price certainly won’t help. On paper, the values of his shares soared as high as nearly $800 million, but much of it has been erased and his 26.89 million shares were valued at roughly $433 million as of closing yesterday, $24 million less than at the close of the IPO. Still, it’s double what Musk made selling his first company, PayPal, but this time he can’t claim it all. The terms of the DoE loan require that Musk retain at least 65 percent of his shares in the company or the loan will default.

Source: Businessweek

By Scott Evans

Lingering Losses: Tesla Reports $38.4 Million Loss for the Second Quarter

Lingering Losses: Tesla Reports $38.4 Million Loss for the Second Quarter

Tesla Motors has yet to post a profit in its short history, and just recorded another significant loss for the second quarter of 2010. With sales of its Roadster electric vehicle in limited quantities, Tesla is now looking toward the launch of its second product, the Model S, in hope of turning a profit

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Although revenue was strong at $28.4 million – a 5.4-percent increase over the same period last year – the automaker managed a $38.4 million net loss. The deficit is attributed to the continued research and development costs for Tesla’s next project, the forthcoming Model S sedan. The Silicon Valley-based automaker insists the development of the Model S is on track, and will debut in 2012 with a price tag of around $57,400 – nearly half the amount of the Roadster’s $109,000. With a more affordable offering, Tesla is expecting a dramatic increase in sales. As of July, the entire run of Tesla Roadsters has accounted for just 1200 sales.

In June, Tesla launched an initial public offering that generated $226 million. Tesla was the first U.S. automaker to go public since Ford’s IPO in 1956. The instant cash infusion should help keep Tesla on its feet until the Model S sees the light of day. Tesla expects its losses to continue, however, until the Model S debuts.

Can Tesla hold out until a second product arrives? Let us know what you think in the comments section.

Source: Automotive News (Subscription required)

By Steve Diehlman