Tesla, Inc. Quarterly Report for Q1 Ended Mar 31, 2013

Summary

Tesla, Inc. reported its first quarter 2013 results, showcasing a significant shift from the prior year's loss to a net income of $11.2 million. This turnaround was primarily driven by the successful launch and delivery of the Model S, which generated $555.2 million in automotive sales, a dramatic increase from $19.2 million in the same period last year. Despite a decrease in development services revenue, the overall revenue surged to $561.8 million. The company's gross profit improved substantially to $96.3 million, a stark contrast to $10.2 million in Q1 2012, reflecting increased automotive sales and improved manufacturing efficiencies. While operating expenses saw an increase primarily due to the expansion of the sales and service network, the company managed its R&D expenses effectively. Tesla ended the quarter with improved liquidity, $214.4 million in cash and cash equivalents, and generated positive free cash flow of $6.4 million, indicating a strengthening financial position.

Key Highlights

• 1Generated a net income of $11.2 million, a significant improvement from a net loss of $89.9 million in Q1 2012.
• 2Total revenues increased by over 17 times to $561.8 million, driven primarily by automotive sales ($555.2 million) from Model S deliveries.
• 3Gross profit improved significantly to $96.3 million, with a gross margin of 17.1%, up from 10.2 million (33.8% gross margin) in Q1 2012 (note: Q1 2012 gross margin calculation from provided data is 10.2/30.2=33.8%). The reported gross margin for Q1 2013 was 17.1% (96.3/561.8).
• 4Model S deliveries commenced in June 2012, contributing substantially to the revenue growth.
• 5Cash and cash equivalents increased to $214.4 million from $201.9 million at year-end 2012.
• 6Generated positive free cash flow of $6.4 million for the quarter.
• 7The DOE warrant liability was eliminated, resulting in $10.7 million of other income.

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