10-QPeriod: Q2 FY2013

Tesla, Inc. Quarterly Report for Q2 Ended Jun 30, 2013

Filed August 9, 2013For Securities:TSLA

Summary

Tesla's Q2 2013 10-Q filing reveals significant financial activity, driven primarily by a successful public offering of common stock and convertible senior notes in May 2013. These offerings provided substantial capital, allowing Tesla to repay its entire outstanding Department of Energy (DOE) loan. The company reported a significant increase in total revenues to $405.1 million, up from $26.7 million in the prior year's quarter, largely due to the ramp-up in Model S deliveries which commenced in June 2012. Despite revenue growth, the company still reported a net loss of $30.5 million for the quarter, though this is a considerable improvement from the $105.6 million loss in Q2 2012. Key operational highlights include increased Model S production and delivery rates, with plans to expand into European markets in August 2013. The company also introduced a resale value guarantee program for Model S, which, while not impacting cash flow, will defer revenue recognition. Management remains optimistic about liquidity and future operations, anticipating further cost reductions and gross margin improvements.

Financial Highlights

46 data points
Beta

Revenue

$405.14M

24.8% Gross Margin

Net Income

-$30.50M

-7.5% Net Margin

EPS (Diluted)

$-0.02

Total Assets

$1.89B

Cash & Equivalents

$746.06M

Free Cash Flow

-$75.81M

Financial Statements
Beta
Revenue$405.14M
Cost of Revenue$304.66M
Gross Profit$100.48M
R&D Expenses$52.31M
SG&A Expenses$59.96M
Operating Expenses$112.28M
Operating Income-$11.79M
Interest Expense$20.12M
Net Income-$30.50M
EPS (Basic)$-0.02

Key Highlights

  • 1Total revenues increased significantly to $405.1 million in Q2 2013 from $26.7 million in Q2 2012, driven by Model S sales.
  • 2Tesla successfully raised substantial capital through a public offering of common stock and convertible senior notes in May 2013.
  • 3The company repaid its entire outstanding Department of Energy (DOE) loan facility of approximately $451.8 million in May 2013.
  • 4Despite revenue growth, Tesla reported a net loss of $30.5 million for Q2 2013, a substantial improvement from a $105.6 million net loss in Q2 2012.
  • 5Model S production and deliveries are increasing, with plans to begin European deliveries in August 2013.
  • 6Gross margin improved to 24.8% in Q2 2013 from 17.1% in Q1 2013, reflecting cost improvements and manufacturing efficiencies.
  • 7Cash and cash equivalents significantly increased to $746.1 million at the end of Q2 2013.

Frequently Asked Questions

In May 2013, Tesla completed a public offering of common stock and convertible senior notes, raising substantial capital. A portion of these proceeds was used to repay the entire outstanding Department of Energy (DOE) loan.

Tesla's total revenues saw a significant increase, reaching $405.1 million in Q2 2013, up from $26.7 million in Q2 2012. This growth was primarily driven by the ramp-up in Model S deliveries.

No, Tesla still reported a net loss of $30.5 million for Q2 2013. However, this represents a significant improvement compared to the net loss of $105.6 million in the same quarter of the previous year.

The resale value guarantee program, introduced in April 2013 for Model S buyers, is accounted for as an operating lease. While it does not impact cash flows or liquidity as Tesla receives full payment at delivery, it defers revenue recognition over the guarantee period and will adversely impact reported revenues and operating results in the near term.