Print 43 comment(s) - last by Mint.. on Aug 9 at 5:29 PM

Tesla shares jumped up to $153 in after-hours trading

Tesla Motors saw a successful second quarter with more Model S sales than expected and even surprised Wall Street with an adjusted profit. 

For Q2 2013, Tesla reported a loss of $30.5 million (26 cents a share), which was much narrower than the $105.6 million ($1 a share) loss in the year-ago quarter. The automaker had an adjusted profit of 22 cents, which beat expectations of a non-GAAP loss of 17 cents. In the year-ago quarter, Tesla reported a profit loss of 89 cents. 

Revenue jumped to $405.1 million compared to just $26.7 million in the year-ago quarter. Analysts expected a revenue of $383 million for Q2 2013. 

Helping to boost Q2 figures was better-than-expected Model S sales. For the quarter, Tesla reported 5,150 Model S electric sedan deliveries -- which beat the automaker's expectation of 4,500 deliveries. 

Also notable is that Tesla's production rate increased 25 percent to almost 500 vehicles per week (up from 400 previously). Tesla sold 10,500 Model S sedans in the first six months of 2013 and plans to reach a rate of 40,000 annually by late 2014.

For the third quarter, Tesla expects to deliver slightly over 5,000 Model S' and a total of 21,000 worldwide for the whole year. 

Tesla shares jumped up to $153 in after-hours trading, which is a 14 percent boost from its Wednesday close at $134.  

For Q1 2013, Tesla reported a net income of $11.2 million (a huge increase 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. Revenue also saw a huge year-over-year boost, totaling $562 million (up from $30.2 million in the year-ago quarter). 

Tesla has become quite a hero in the auto industry. In May, Tesla repaid its $465 million loan from the U.S. Department of Energy (DOE) nine years earlier than expected from the original 2022 due date. 

This was mainly due to its decision to issue more stock the week before. Tesla said it wanted to sell about $830 million in shares, and use $450 million in convertible senior notes (which are due in 2018) along with sales of 2.7 million shares (valued at about $229 million at the time) to pay back its federal loan. This is an especially crucial detail in Tesla's history, considering other plug-in hybrid electric automaker Fisker Automotive (which also received a DOE loan) has failed miserably

More recently, Tesla has had a few other victories, such as a win in the battle against auto dealers when a North Carolina House committee denied a bill that would block Tesla from being able to sell its vehicles directly to the public. 

Tesla has also started showing off new tech that could transform the electric auto industry. In June, Tesla unveiled a convenient alternative to waiting for a Model S to charge -- battery swapping. The idea behind battery swapping is to easily open the car chassis to pull the battery out and replace it with a fully charged one. This saves the driver from having to wait for their battery to charge before traveling.

After that, Tesla Chief Technology Officer JB Straubel said that the automaker is working on a charging system that would get drivers out of the Supercharger stations and back on the road with a full charge in just 5 minutes.

Source: The Wall Street Journal

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RE: OK, so what's next?
By Brandon Hill on 8/7/2013 9:38:27 PM , Rating: 5
I'm waiting to see this $35,000, 200-mile third generation Tesla model. That will really send Tesla through the roof.

RE: OK, so what's next?
By CaedenV on 8/7/2013 10:20:18 PM , Rating: 2
Exactly. I would love a reliable cheap bare-bones electric car which should be what 'blue star' is all about. Does not need to be fancy, just needs to be under (preferably well under) the $30,000 mark, not be a hassle to install a high voltage charger at home, and get some 100mi per charge. If they build me a 'cheap' EV commuter car that I can run into the ground for 10 years without issue then I will gladly vote with my dollars!

RE: OK, so what's next?
By flyingpants1 on 8/7/2013 10:26:01 PM , Rating: 2
Won't be that cheap. BlueStar competes with BMW 1 and Audi A3.

RE: OK, so what's next?
By Spuke on 8/8/2013 2:26:44 PM , Rating: 2
I agree. Tesla is firmly seated in the luxury market and I don't blame them cause that's where the money is. I am also waiting to see what they do on the lower end of that market.

RE: OK, so what's next?
By flyingpants1 on 8/7/13, Rating: 0
RE: OK, so what's next?
By Spuke on 8/8/2013 2:29:11 PM , Rating: 3
How about pairing up with Solar city to offer small, cheap solar systems starting at 2kw to offset power used by charging the Model S?
Solar City's cheapest system (2.35kW) is $13,000 which is WAY overpriced. Buy your own panels and inverter and have an electrician install it for you for MUCH cheaper.

RE: OK, so what's next?
By Mint on 8/8/2013 12:42:39 AM , Rating: 2
For the most part, investors have already priced moderate success of the third-gen car into Tesla's stock price.

It's going to be very challenging, though, to get good margins on a $35k EV in 2016 due to the competition. I also think their pure EV philosophy is going to hurt them. It's one thing to make an 80-mile Leaf cheaper than a 40-mile Volt, but entirely another to make a 200-mile Tesla competitive with a 100-mile EREV. It'll be at least 2020 before 100-miles of battery (25-30kWh) costs as little as a 40hp engine-generator.

So honestly I don't see Tesla doing quite as well as most people do. Maybe $1B/yr in profit 3-5 years from now.

RE: OK, so what's next?
By flyingpants1 on 8/8/13, Rating: 0
RE: OK, so what's next?
By Mint on 8/8/2013 9:35:26 PM , Rating: 2
Pure cult stocks crash very hard.

There's a lot of analysts out there giving TSLA price targets, and the high ones are indeed based on assumptions of third gen success. Even your revenue estimate (which will need similar volume to my profit estimate, and moderate third gen success) is not enough to sustain a $18B market cap. Ford has $120B+ revenue but only 4x the market cap.

The one ace that Tesla has, however, is their supercharging network. It's a lot like Apple building an App store that made the iPhone sell better than than cheaper, superior hardware for a long time.

I'm also making an assumption about them continuing to ignore range extenders. Elon is smart dude and probably won't ignore them forever.

RE: OK, so what's next?
By Cheesew1z69 on 8/9/2013 9:19:44 AM , Rating: 2
They recently installed those chargers a few miles from my house in SWFLA, apparently they are the only ones in the area. I haven't been by to see them yet though.

"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton

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