01—Abstract
Summary
Summary of the 10-K filed March 3, 2011. Cited figures are marked; the original filing is the authoritative source.
Tesla, Inc. filed its annual report for the fiscal year ended December 31, 2010, highlighting its progress in the electric vehicle market.
The company's primary product, the Tesla Roadster, had surpassed 1,500 deliveries globally by the end of 2010, demonstrating early market traction. Tesla was also actively developing its next vehicle, the Model S, with over 3,400 customer reservations by year-end and a projected production start in mid-2012. Significant strategic partnerships with Daimler and Toyota were in place for powertrain development and component supply, underscoring Tesla's technological capabilities.
The company secured substantial government funding, including a $465 milliona loan facility from the Department of Energy, to support the development of the Model S and its manufacturing infrastructure. Tesla's business model centered on a company-owned sales and service network, aiming for a premium customer experience.
While the Roadster was a niche, high-performance product, the Model S was positioned to appeal to a broader market segment. Tesla's financial performance in 2010 showed increasing revenues, driven by both vehicle sales and development services, though the company continued to incur net losses as it heavily invested in R&D and expansion.
02—Key points
Key Highlights
- Tesla delivered over 1,500 Tesla Roadsters globally by December 31, 2010, indicating initial market penetration.
- The company had secured over 3,400 reservations for its upcoming Model S sedan, targeting a mid-2012 production start.
- Significant strategic partnerships were established with Daimler and Toyota for electric vehicle powertrain development and supply.
- Tesla secured a $465 million loan facility from the U.S. Department of Energy to fund Model S development and manufacturing facility build-out.
- The company expanded its direct-to-consumer sales and service network, operating 16 Tesla stores globally by the end of 2010.
- Total revenues for 2010 reached $116.7 million, an increase from $111.9 million in 2009, driven by vehicle sales and development services.
- Tesla continued to invest heavily in research and development, with R&D expenses increasing to $93.0 million in 2010, primarily for Model S development.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2010, Tesla, Inc. lost $1.32.
- Revenue$116.7M100.0%
- Cost of revenue−$86.0M73.7%
- Gross profit$30.7M26.3%
- Operating costs−$177.6M152.1%
- Operating income−$146.8M125.8%
- Interest, other & tax−$7.5M6.4%
- Net income−$154.3M132.2%
04—Financials
Financial Highlights
Figures from 10-KFY2010filed March 3, 2011Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $116.74M$111.94M | +4.3% |
| Cost of Revenue | $86.01M$102.41M | −16.0% |
| Gross Profit | $30.73M$9.54M | +222.3% |
| R&D Expenses | $93.00M$19.28M | +382.3% |
| SG&A Expenses | $84.57M$42.15M | +100.6% |
| Operating Expenses | $177.57M$61.43M | +189.0% |
| Operating Income | -$146.84M-$51.90M | −182.9% |
| Interest Expense | $992K$2.53M | −60.8% |
| Net Income | -$154.33M-$55.74M | −176.9% |
05—Questions
Frequently Asked Questions
What is Tesla's primary business focus as of the end of 2010?
Tesla's primary focus is on designing, developing, manufacturing, and selling high-performance fully electric vehicles and advanced electric vehicle powertrain components. As of December 31, 2010, their main product was the Tesla Roadster, and they were in the advanced stages of developing the Model S sedan.
How is Tesla funding its growth and the development of the Model S?
Tesla's funding strategy in 2010 included proceeds from its initial public offering (IPO) in July 2010, private placements with Toyota and Panasonic, and a significant $465 million loan facility from the U.S. Department of Energy. These funds are crucial for developing the Model S, building manufacturing facilities, and supporting ongoing operations.
What is Tesla's sales and distribution strategy?
Tesla employs a direct-to-consumer sales model, operating its own network of 'Tesla stores' globally. This model aims to control the customer experience, manage inventory, and strengthen the Tesla brand, differentiating it from traditional franchised dealership models.
What are the key risks facing Tesla as highlighted in this filing?
Key risks include Tesla's limited operating history, its dependence on the success of the upcoming Model S, potential delays in production and financing, intense competition from established automakers, the need for significant capital investment, and regulatory challenges related to electric vehicles and direct sales. The company also acknowledged its reliance on key personnel and the potential impact of global economic conditions on consumer demand for luxury vehicles.
06—Continue