10-QPeriod: Q1 FY2013

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

Filed May 10, 2013For Securities:TSLA

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.

Financial Highlights

49 data points
Beta

Revenue

$561.79M

17.1% Gross Margin

Net Income

$11.25M

2.0% Net Margin

EPS (Diluted)

$0.00

Total Assets

$1.14B

Cash & Equivalents

$214.42M

Free Cash Flow

$6.35M

Financial Statements
Beta
Revenue$561.79M
Cost of Revenue$465.47M
Gross Profit$96.32M
R&D Expenses$54.86M
SG&A Expenses$47.05M
Operating Expenses$101.90M
Operating Income-$5.58M
Interest Expense$118K
Net Income$11.25M
EPS (Basic)$0.01
Shares Outstanding (Basic)1.72B
Shares Outstanding (Diluted)1.86B

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.

Frequently Asked Questions

Tesla achieved profitability in Q1 2013 with a net income of $11.2 million, a significant turnaround from a net loss of $89.9 million in Q1 2012. Total revenues surged to $561.8 million from $30.2 million, primarily driven by Model S sales. Gross profit also saw a substantial increase to $96.3 million.

The primary driver was the commencement of Model S deliveries in June 2012, which generated $555.2 million in automotive sales. Sales of regulatory credits and powertrain component sales to Toyota for the RAV4 EV also contributed, although development services revenue decreased due to project completions.

Tesla's cash and cash equivalents increased to $214.4 million by the end of the quarter, up from $201.9 million at the end of 2012. The company also generated positive free cash flow of $6.4 million, indicating improved operational cash generation.

The DOE warrant liability was reduced to zero and recognized as $10.7 million in other income due to amendments to the DOE Loan Facility that accelerated its maturity and repayment schedule, making the warrant unlikely to vest. Tesla also continued to make scheduled quarterly payments under its DOE Loan Facility.