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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 Reclaimer77 on 8/8/2013 12:30:31 AM , Rating: 2
quote:
Watch Tesla fly through all these challenges with flying carpets.


Challenges are easier to overcome when you have Government's giving you an unfair leg-up on everyone with cronyism.

So since Tesla is doing so dashingly, it's time to end the subsidies and let them stand on their own. Right?

If you don't agree, you're a hypocrite.


RE: OK, so what's next?
By flyingpants1 on 8/8/2013 2:59:25 AM , Rating: 2
I partially agree, but not for the same reason. I don't particularly have a problem with subsidizing electric cars, or subsidizing oil, or subsidizing anything in general. I know you feel differently. But out of all the things in the world you could subsidize, the acceleration of the development of mainstream electric cars is hardly the worst.

I disagree with the implementation.. As you say, it does give EVs an leg-up. Sort of debatable how unfair it is, since the major car companies and oil industry have also received loans, bailouts, or some other form of subsidies, for decades. But just chopping $7500 off the sticker price of an EV seems like an insult to all other car manufacturers.

In the case of the Model S at least, it's quite literally a tax break for the rich. The $7500 rebate will lower the monthly payment on a $100k car from like.. $1300 to $1200. What the hell? Not even I will defend that. Meanwhile the people who don't MAKE enough to pay $7500/year in tax get shafted. That's the exact wrong way to do it.

As for ending all subsidies right now, I don't think it would kill the company. It would just slow expansion.


RE: OK, so what's next?
By maugrimtr on 8/8/2013 8:33:41 AM , Rating: 1
Tesla is hardly alone on the tax credit front. Fine, cut it. Tesla may make a loss but so will every other company involved in EVs. The rest will be a blitz on reducing costs, increasing prices to maximize profit from possible demand, and we'll see who wins.

What's important is that either way, Tesla has no unfair advantage at this point (it's literally the underdog without a massive ICE business channeling it R&D and survival loans) and it's doing extremely well.


RE: OK, so what's next?
By Reclaimer77 on 8/8/2013 7:05:12 PM , Rating: 2
quote:
Tesla has no unfair advantage at this point


But they do. Offering them the kinds of subsidies, ridiculously lax loan terms, and other perks while not other automakers/businesses is by definition "unfair".

This is why Crony Capitalism is unconstitutional. Even though it's uber common. The Government is bestowing favors on one business over others.


RE: OK, so what's next?
By Mint on 8/8/2013 9:59:01 PM , Rating: 1
He said "at this point". There is no gov't loan anymore, and EV credits/subsidies are available to any automaker who wants to produce the product that meets the requirements. That's the opposite of "unfair".


RE: OK, so what's next?
By jimbojimbo on 8/8/2013 1:04:39 PM , Rating: 1
If you're making enough to be paying just $7500 per year in taxes you really can't afford a $100k car.


RE: OK, so what's next?
By flyingpants1 on 8/8/2013 5:45:01 PM , Rating: 2
The.. Nevermind.


RE: OK, so what's next?
By Mint on 8/8/2013 10:21:37 PM , Rating: 2
You're making an assumption that rich people will still buy the car in similar numbers if it cost $7500 more. If that was true, Tesla would jack their prices $7500 today and earn $160M more this year. For that matter, so would BMW, Audi, etc.

The reality is that price matters even to rich people.

Even a luxury maker like Tesla would be in a very different position without EV credits or subidies, and possibly insolvent. Tesla still hasn't broken even over it's lifetime.


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