Summary
Tesla, Inc. (TSLA) reported its third quarter 2012 results, a period marked by the commencement of Model S deliveries in June 2012, a significant milestone for the company. While total revenues declined year-over-year due to a decrease in development services and Roadster sales, automotive sales revenue saw an increase, primarily driven by early Model S deliveries and powertrain systems supplied to Toyota. The company continues to invest heavily in research and development and infrastructure, leading to a substantial net loss for the quarter. However, Tesla successfully completed a public offering in early October 2012, raising approximately $222.1 million in net proceeds, which, combined with existing liquidity sources, is expected to provide adequate funding until profitability is reached in 2013. Management expressed confidence in reaching positive free cash flow by the end of Q4 2012, contingent on meeting Model S delivery targets.
Financial Highlights
45 data points| Revenue | $50.10M |
| Cost of Revenue | $58.87M |
| Gross Profit | -$8.76M |
| R&D Expenses | $61.90M |
| SG&A Expenses | $37.80M |
| Operating Expenses | $99.70M |
| Operating Income | -$108.46M |
| Interest Expense | $78K |
| Net Income | -$110.80M |
Key Highlights
- 1Commenced Model S deliveries in June 2012, a key strategic milestone.
- 2Automotive sales revenue increased by 16% year-over-year for the third quarter, driven by Model S and Toyota RAV4 EV powertrain supply.
- 3Significant investments in R&D and manufacturing infrastructure led to a Q3 2012 net loss of $110.8 million.
- 4Total revenues decreased 13% year-over-year for the third quarter, impacted by lower development services and Tesla Roadster sales.
- 5Completed a public offering in October 2012, raising $222.1 million in net proceeds.
- 6Ended the quarter with $108.6 million in principal sources of liquidity (cash and restricted cash).
- 7Management anticipates reaching profitability in 2013 and positive free cash flow by the end of Q4 2012.