01—Abstract
Summary
Summary of the 10-K filed March 7, 2013. Cited figures are marked; the original filing is the authoritative source.
Tesla Motors, Inc.'s 2012 Form 10-K highlights a pivotal year marked by the commencement of Model S deliveries in June 2012, transitioning the company from development to production and sales.
Total revenues more than doubled to $413.3 milliona, primarily driven by automotive sales, which surged 160% to $385.7 million, reflecting the ramp-up of Model S production and continued sales of the Tesla Roadster and regulatory credits. Despite increased revenues, Tesla reported a net loss of $396.2 million, impacted by significant research and development expenses ($274.0 million) and selling, general, and administrative costs ($150.4 million) associated with scaling operations, preparing the Tesla Factory, and expanding the retail network. The company ended the year with $201.9 million in cash and cash equivalents, supported by proceeds from a follow-on stock offering and the full drawdown of its Department of Energy loan facility, indicating a focus on continued investment in future growth, including the development of the Model X.
Key challenges and opportunities for Tesla in 2012 revolved around scaling Model S production efficiently while maintaining quality, expanding its direct sales and service model globally, and managing a complex supply chain, particularly for critical components like battery cells. The company also benefited significantly from regulatory credit sales, which contributed $40.5 millionb to revenue. Looking ahead, Tesla aimed to reach profitability in 2013 by further improving production efficiency, reducing costs, and expanding its vehicle offerings and international market presence.
02—Key points
Key Highlights
- Tesla commenced Model S deliveries in June 2012, marking a significant operational milestone.
- Total revenues increased by 102% to $413.3 million, primarily driven by automotive sales which grew 160% to $385.7 million.
- The company reported a net loss of $396.2 million for the year, reflecting substantial investments in R&D and SG&A for scaling operations.
- Tesla ended 2012 with $201.9 million in cash and cash equivalents, supported by equity financing and DOE loan drawdowns.
- Regulatory credit sales contributed $40.5 million to revenue, highlighting an important, albeit temporary, revenue stream.
- Significant investments were made in preparing the Tesla Factory for Model S production and in expanding the retail and service network.
- Development of the Model X continued, with plans for production to begin in late 2014.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2012, Tesla, Inc. lost $0.96.
- Revenue$413.3M100.0%
- Cost of revenue−$383.2M92.7%
- Gross profit$30.1M7.3%
- Operating costs−$424.4M102.7%
- Operating income−$394.3M95.4%
- Interest, other & tax−$1.9M0.5%
- Net income−$396.2M95.9%
04—Financials
Financial Highlights
Figures from 10-KFY2012filed March 7, 2013Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $413.26M$204.24M | +102.3% |
| Cost of Revenue | $383.19M$142.65M | +168.6% |
| Gross Profit | $30.07M$61.59M | −51.2% |
| R&D Expenses | $273.98M$208.98M | +31.1% |
| SG&A Expenses | $150.37M$104.10M | +44.4% |
| Operating Expenses | $424.35M$313.08M | +35.5% |
| Operating Income | -$394.28M-$251.49M | −56.8% |
| Interest Expense | $254K$43K | +490.7% |
| Net Income | -$396.21M-$254.41M | −55.7% |
| EPS (Basic) | $-0.25— | — |
| Shares Outstanding (Basic) | 1.61B— | — |
05—Questions
Frequently Asked Questions
What were Tesla's primary revenue drivers in 2012?
Tesla's primary revenue drivers in 2012 were automotive sales, significantly boosted by the commencement of Model S deliveries in June. Revenue from Model S production ramp-up, ongoing sales of the Tesla Roadster, sales of electric vehicle powertrain components to other manufacturers (like Toyota for the RAV4 EV), and sales of regulatory credits (ZEV and GHG) contributed to the overall automotive sales figure.
What was Tesla's financial performance in 2012, and what factors influenced it?
Tesla experienced significant revenue growth in 2012, more than doubling to $413.3 million. However, the company reported a net loss of $396.2 million. This loss was primarily due to substantial investments in research and development for Model S and Model X, scaling manufacturing operations at the Tesla Factory, expanding the sales and service network, and higher selling, general, and administrative expenses.
How did Tesla fund its operations and growth initiatives in 2012?
Tesla funded its operations and growth initiatives in 2012 through a combination of cash generated from sales activities (including reservation payments), a follow-on stock offering in October 2012 which raised approximately $222.1 million, and the full drawdown of its Department of Energy (DOE) loan facility, totaling $465.0 million. The company ended the year with $201.9 million in cash and cash equivalents.
What are Tesla's key operational priorities and challenges moving into 2013 based on this filing?
Key operational priorities for Tesla in 2013 include stabilizing and improving Model S production efficiency to meet the target of 20,000 deliveries, expanding international deliveries (Europe and Asia), and continuing the development of the Model X. Key challenges include managing supply chain complexities, controlling manufacturing costs during the production ramp, expanding the direct sales and service infrastructure, and reducing reliance on regulatory credit sales for profitability.
06—Continue