Tag archives for Sales & Earnings - Page 2
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
In what could prove to be a symbolic moment for the strength and potential of the electric vehicle industry, Tesla Motors, on its company blog, announced its intention to re-pay its Department of Energy Advanced Technology Vehicle Manufacturing loan five years ahead of schedule, with the last payment being on 2017, instead of 2022 the original deadline for payback of the loans.
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 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
Tesla Motors, the electric-car manufacturer launched by billionaire entrepreneur Elon Musk, may finally be on the way to turning a profit. In a message posted to Twitter on Monday, company CEO Musk said that, “Tesla was narrowly cash flow positive last week. Continued improvement expected through year end.”
If true, the message is good news for Tesla, which has heretofore struggled to turn a profit despite receiving millions of dollars in private funding, as well as a $465 million loan from the Department of Energy. For the third quarter of 2012, Tesla reported a net loss of $111 million. However, the company predicts a positive operating margin of about 12 percent by the end of 2012.
Tesla sold 2400 copies of its first car, the Lotus Elise-based Roadster, and is now ramping up production of the Model S luxury sedan. We named the Tesla Model S our 2013 Automobile Of The Year, and our colleagues at Motor Trend concurred by naming named it Car Of The Year.
Sales of the car, however, have been anything but brisk. More than 13,200 people have placed reservations for the Model S so far, but as of November 5 the company had only built 350 cars and delivered just 250 to paying customers. That didn’t stop the automaker from raising prices of the Model S by $2500, effective January 1, although Tesla defended the price bump as equaling only half the national inflation rate.
If Tesla really is on track to profitability, that bodes well for the company achieving its fourth-quarter goals. Before the end of 2012, Tesla hopes to open ten more retail outlets (for a total of 24 domestically and 34 globally) and deliver another 2500-3000 vehicles. Then in 2013, Tesla says it will continue to ramp up production and deliver 20,000 cars. We’ll see whether Tesla’s financials can stay in the black long enough for the company to hit those benchmarks.
Sources: Twitter, Tesla
By Jake Holmes
The first models that come to mind for mass-market plug-in vehicles are probably the Chevrolet Volt, Nissan Leaf, and more lately, the Ford Fusion and C-Max Energi. But the best-selling plug-in vehicle for the first quarter of 2013 is expected to be our 2013 Automobile of the Year, the Tesla Model S. Bloomberg reports that the company will reveal the sales results as part of their official sales and financial report to be released on May 8.
Tesla is expected to report 4750 deliveries of the Model S when it releases first-quarter sales and financial results. The Volt sold 4421 units and the leaf sold 3695 units in the same period. This accomplishment follows the company’s earlier announcement of a new fleet of loaner vehicles and a “no-fault” battery warranty, as well as the expectation it will post its first-ever quarterly profit.
General Motors spokesperson Jim Cain lauded Tesla’s apparent victory, saying, “Any success for a company in this space is helpful for all other makers of plug-in vehicles.”
Although the Model S has taken the lead for this quarter, both the Volt and the Leaf have been on-sale longer than the Model S, and have more affordable starting prices than the premium Model S, which can crest six figures in top-of-the-line trim. Despite Tesla’s apparent successes, many auto industry analysts remain skeptical of the company’s long-term viability.
Get your checkbooks out: Tesla is now planning to file an initial public offering at an estimated $178 million.
Well, not quite yet.
Tesla, which has lost money hand over fist since inception, believes it can make an IPO of $178 million, up from a January estimate of $100 million. The automaker plans to sell just over 11 million shares, at $14 to $16 each, and will be bolstered by a planned $50 million investment from Toyota.
Currently, Tesla’s earnings stand at $147.6 million since 2003, contrasted against losses of more than $290 million. So far, the money comes from the sales of its one and only offering, the Tesla Roadster, though Tesla has teased a sedan called the Model S.
Tesla is working on the sedan in collaboration with Toyota and expects it to compete in the $50,000 range. It will be built in Toyota’s shuttered NUMMI manufacturing facility in Fremont, California, pending the finalization of an agreement between the two companies. We’ve already reported on the two brands working together, and are curious to see if Tesla can make good on the deal.
Source: Detroit News
Tesla Motors revealed today that it will post a profit in the first quarter of 2013, because sales of the Model S electric sedan exceeded expectations. Total sales of the Tesla Model S reached 4750 units, 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.
“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 line-up. 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 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 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.
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
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)
Haven’t we heard this one before? An auto manufacturer opens a dealership owned by them (and not a franchise) and gets called out by various dealer organizations and state governments for violating franchise laws. Tesla is now coming under fire for that very reason.
Automotive News is reporting that the manufacturer-owned stores that Tesla has been opening up across the country are in a direct violation of various states’ franchise laws. Some states completely prohibit dealerships run by automakers, while others – like California – require a certain amount of distance between factory-owned and dealer-owned stores.
Dealer groups are worried that “If a manufacturer sees that Tesla is successful with this kind of business model, who’s to say they don’t break out their own EV product lines and create a separate system that bypasses dealers?” Bob O’Koniewski, the executive vice president of the Massachusetts State Automobile Dealers Association, told AN.
Despite saying that it does not want to revolutionize the car-buying experience, Tesla has taken a different tack from other automakers. The upstart automaker hired George Blankenship as the VP of sales to head up the retail experience – Blankenship previously created the look and feel of Apple’s retail stores and has given Tesla’s in-mall retail shops a similar feel. Litigation against Tesla is currently being pursued in Oregon, Massachusetts, and New York; however, some states (such as Texas) has no laws regulation car dealership ownership.
Chrysler faced the same kind of scrutiny that Tesla is now facing when it opened a factory-owned dealership in California last year. After a legal battle, Chrysler acquiesced and sold the retail store to a local dealer.
Source: Automotive News (Subscription required)
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.
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.”
“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.
By Scott Evans