Tesla Reports First Profitable Quarter; Hires Aston Martin's Chief Vehicle Engineer
May 8, 2013 8:07 PM
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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.
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5/9/2013 5:58:57 AM
Tesla cars are for the rich. Period.
12% of new car purchases are >$40,000
3 million new cars are purchased annually in the USA alone.
12% of 3 million is 360,000 "luxury" cars.
I'd guess about 250,000 of those are $50,000+
That's the starting price of a Model S.
If Tesla can convince people into these things with their supercharger network, government tax credits and subsidized home charging systems, there are potentially 250,000 annual customers.
This thing is, after all, faster than 98% of all production cars, with the luxury of an Audi A6 or an S-class.
Reliability should also be exceptional. Finally people don't have to buy a Lexus to be guaranteed a luxury car that'll work every day.
5/9/2013 6:20:38 AM
Out of curiosity, what's your source?
I'll add in a little data about new car buyers:
~40% have income $50-100k, ~33% earn >$100k. Most cars are bought by people with good incomes.
Also, eventually a company in the US will sell EVs like we sell cellphones. Buy the car, but you don't own the battery. Instead, you pay a monthly fee to use it, and different plans have different mileages. As long as that fee is less than what we pay for gas, it's worth it. Renault is already doing this in Europe, and it allowed them to make the ZOE cost $10k less than other EVs.
5/10/2013 11:07:34 AM
Just my personal opinion, if you make 100k/year you can't really afford a car for 50k. People take on way too much debt, IMO.
5/11/2013 12:47:31 AM
Something called saving? not all of us live pay check to paycheck especial those of us that make 100k a year.
I don't have a problem saving 15-25k a year. In one year, I could probably come up with a 20k down payment. With my trade in, let's say I still have 30k left to pay for a new Model S. That's only a $550-625 a month.
I don't see how I cannot afford a 50k car when a 60k car is well within my budget.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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