Tesla, Inc. Quarterly Report for Q3 Ended Sep 30, 2013

Summary

Tesla, Inc. (TSLA) reported its third quarter 2013 financial results, showcasing a significant year-over-year increase in revenue, driven primarily by the ramp-up in Model S deliveries and the expansion into European markets. Despite revenue growth, the company continued to incur operating losses, though these losses narrowed compared to the previous year's period. A key development was the successful completion of a public offering of common stock and convertible senior notes, substantially bolstering the company's cash position. This capital raise, along with strong operational cash generation, provided Tesla with ample liquidity to fund its ongoing operations, research and development, and expansion plans, including the Supercharger network and preparations for the Model X.

Key Highlights

• 1Total revenues increased significantly year-over-year to $431.3 million for Q3 2013, up from $50.1 million in Q3 2012, driven by Model S deliveries.
• 2The company ended the quarter with a strong cash position of $795.1 million in cash and cash equivalents, an increase from the prior year.
• 3Tesla successfully raised capital through a public offering of common stock and convertible senior notes, totaling approximately $355.5 million and $648.0 million in net proceeds, respectively.
• 4Gross profit turned positive in Q3 2013 at $102.9 million, a substantial improvement from a gross loss of $8.8 million in Q3 2012.
• 5Operating expenses increased significantly, with SG&A expenses rising to $77.1 million from $37.8 million year-over-year, reflecting global expansion efforts.
• 6The company repaid its entire outstanding loan facility with the Department of Energy for approximately $451.8 million in May 2013.
• 7Model S deliveries expanded to Europe in August 2013, contributing to the revenue growth.

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