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Tesla shares surged almost 30 percent in after-market trading in New York to as much as $72.99

Tesla Motors CEO Elon Musk was right: the company certainly is profitable now, and even managed to beat analysts' expectations.

For Q1 2013, Tesla reported a net income of $11.2 million, which was quite a jump from an $89.9 million loss in the year-ago quarter. Excluding certain items, Tesla's profit came in at 12 cents a share, which was a boost from a loss of 76 cents a share in Q1 2012. 

Analysts expected a profit of about 4 cents a share. 

"We exceeded our own targets for deliveries, significantly expanded gross margin, and improved execution throughout the company," said Tesla. "Excluding non-cash warrant and stock option items, we generated a profit of $15 million. Including those factors, our GAAP profit was $11 million. Importantly, we achieved profitability despite the benefit of a one-time accounting gain related to the DOE warrant.
 
"2013 is off to a strong start, and we look forward to seeing more of you on the road in a Model S this year."

Revenue also saw a huge year-over-year boost, totaling $562 million (up from $30.2 million in the year-ago quarter). 

Tesla had an operations loss of $5.58 million, down from $88.8 million in the year-ago quarter.

Tesla sold 4,900 Model S sedans in the first quarter, beating its previous projections of 4,500. Model S deliveries for the entire year should total 21,000, which slightly exceeds previous forecasts of about 20,000. 


The company said its sales of zero-emission vehicle credits to automakers totaled $68 million, or 12 percent of revenue for Q1 2013.

Just this week, it was reported that Tesla could receive $250 million in environmental credits from California alone this year. 

For Q2 2013, Tesla expects to build 5,000 Model S' and ship about 4,500 in North America (the rest are headed to Europe). 

"Operating expenses are expected to increase moderately in Q2," said Tesla. "R&D expenses are expected to increase slightly from Q1 as the pace of product development starts to pick up. SG&A expenses will continue to rise moderately, primarily due to the growth in our stores and service centers.
 
"We plan to spend about $200 million on capital expenditures in 2013, as we conclude the majority of our investment in the Tesla Factory and Model S tooling."

Tesla shares surged almost 30 percent in after-market trading in New York to as much as $72.99. 

In other Tesla-related news, the company hired Aston Martin's Chief Engineer of Vehicle Engineering Chris Porritt this week. He will now be Tesla's Vice President of Vehicle Engineering.
 
"Tesla is a hardcore technology company, which means that anyone leading a team of engineers must be an outstanding engineer themself, as well as a good leader," said Musk. "Chris demonstrated exactly that in his prior role at Aston Martin, creating in the One-77 what was arguably their best car ever."

Tesla has certainly come a long way from this time last year. After problems with Model S shipment delays, a run-in with a poor review from The New York Times, and a production delay announcement for the Model X, Tesla has now proved that nothing can hold it back. 

Tesla began shipping 500 Model S' a week in March, exceeding the sales outlook of 4,500 posted in the February shareholder letter. 

It later announced that the company would be able to pay off its $465 million government loan within five years, and that this current quarter would be its first profitable one. Clearly, the company was right. 
 
Tesla is looking to keep that momentum by any means necessary. The electric auto maker has worked hard to please customers with a new battery replacement program as well as new service programs, which feature valet for customers who need to send their Model S' to the shop -- and can even borrow (or later buy) a better Model S or Tesla Roadster as loaner vehicles. 

Tesla CEO Elon Musk has been fighting for a Texas electric vehicle sales bill (House Bill 3351) as well, which would allow distributors and manufacturers of electric vehicles only to sell directly to customers without the use of dealerships. Musk called this bill a matter of "life or death" for Tesla. 

Sources: Tesla Motors, Tesla Motors



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RE: Nonsense
By V-Money on 5/8/2013 11:52:02 PM , Rating: 3
I wouldn't go that far. I've always owned multiple vehicles and I would gladly try out an EV if the range was enough for my normal commute. It would make a lot of sense for people who have normal commutes within the range (which 200 miles would be plenty for pretty much everyone, who really drives more than 200 miles in a day...normally...I drove over a 1000 today but I'm moving). It would allow you to never have to worry about stopping to get gas and since they will have charging pads you wouldn't have to remember to plug it in.

The problem is that people only look at their own situation. I love driving so an EV wouldn't work as my only vehicle, but I could see me having one as an extra vehicle. I also just came from the DC area and I know a lot of people who would love to be able to drive to work without having to deal with getting gas. For instance, read this article http://articles.washingtonpost.com/2013-04-28/loca... and you can see how EVs could be very beneficial.


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