Summary
Tesla, Inc. (TSLA) filed its Form 10-Q for the period ending September 29, 2010, detailing its financial performance and operational developments. The company reported total revenues of $31.2 million for the third quarter of 2010, a decrease from $45.5 million in the prior year's same quarter. This decline was primarily driven by lower automotive sales, though offset partially by new development services revenue. Despite reduced revenues, gross profit saw an increase to $9.3 million from $7.7 million, driven by improved product mix and early contributions from development services. The company's operational expenditures, particularly in research and development and selling, general, and administrative, increased significantly due to investments in the Model S development and expanding operations. This led to a wider operating loss of $37.8 million for the quarter, compared to $4.3 million in the prior year. Tesla raised significant capital through its Initial Public Offering (IPO) and a concurrent private placement with Toyota in July 2010, bringing in substantial cash which, combined with existing cash reserves and a Department of Energy loan facility, is expected to fund operations for the next 24 months.
Financial Highlights
25 data points| Revenue | $31.24M |
| Cost of Revenue | $21.95M |
| Gross Profit | $9.30M |
| R&D Expenses | $26.70M |
| SG&A Expenses | $20.43M |
| Operating Expenses | $47.13M |
| Operating Income | -$37.83M |
| Interest Expense | $298K |
| Net Income | -$34.94M |
Key Highlights
- 1Total revenues decreased to $31.2 million in Q3 2010 from $45.5 million in Q3 2009, primarily due to lower automotive sales.
- 2Gross profit increased to $9.3 million from $7.7 million year-over-year, driven by higher-margin development services and improved product mix.
- 3Operating expenses surged, especially R&D and SG&A, leading to an operating loss of $37.8 million, significantly wider than the $4.3 million loss in Q3 2009.
- 4The company successfully completed its Initial Public Offering (IPO) and a private placement with Toyota in July 2010, raising substantial capital.
- 5Tesla drew down $56.6 million from its Department of Energy loan facility for powertrain and Model S development.
- 6Cash and cash equivalents stood at $96.6 million at quarter-end, with an additional $88.1 million in restricted cash designated for the DOE loan facility.