Summary
Tesla, Inc. (TSLA) reported its second-quarter 2012 financial results, marked by the significant milestone of commencing Model S deliveries. Total revenues for the quarter were $26.7 million, a substantial decrease from $58.2 million in the prior year's quarter. This decline was primarily driven by the completion of automotive sales programs with Daimler and the wind-down of Tesla Roadster sales in North America, partially offset by early Model S deliveries and ongoing powertrain system sales to Toyota. Operating expenses, however, saw a notable increase, with research and development expenses rising to $74.9 million from $52.5 million year-over-year, largely due to intensified Model S pre-production activities and manufacturing preparedness. This investment, coupled with lower revenues, resulted in a significant operating loss of $106.2 million for the quarter, compared to a loss of $58.7 million in Q2 2011. Despite the operational challenges, Tesla's liquidity remains a key focus, with $265.8 million in principal sources of liquidity, including cash, restricted cash, and remaining DOE loan facility funds. The company anticipates reaching free cash flow break-even in Q4 2012 and profitability in 2013.
Financial Highlights
45 data points| Revenue | $26.65M |
| Cost of Revenue | $21.89M |
| Gross Profit | $4.76M |
| R&D Expenses | $74.85M |
| SG&A Expenses | $36.08M |
| Operating Expenses | $110.94M |
| Operating Income | -$106.17M |
| Interest Expense | $84K |
| Net Income | -$105.60M |
Key Highlights
- 1Commenced Model S deliveries in June 2012, a critical step towards scaling operations.
- 2Total revenues decreased significantly to $26.7 million in Q2 2012 from $58.2 million in Q2 2011, impacted by program completions and Roadster sales wind-down.
- 3Research and Development (R&D) expenses increased substantially to $74.9 million, reflecting heavy investment in Model S production readiness.
- 4Net loss widened to $105.6 million from $58.9 million in the prior year's quarter due to increased expenses and lower revenue.
- 5Company maintained a liquidity position of $265.8 million as of June 30, 2012, including cash and remaining DOE loan facility funds.
- 6Reservation payments for Model S and Model X reached $133.4 million, indicating strong customer interest.
- 7Expects to reach free cash flow break-even in Q4 2012 and profitability in 2013.