Summary
Tesla, Inc. (TSLA) reported its second quarter 2016 financial results, showcasing continued revenue growth driven by vehicle deliveries, including the newer Model X. Total revenues reached $1.27 billion, a significant increase from the prior year's $955 million. Despite this top-line growth, the company reported a net loss of $293 million for the quarter, an increase from $184 million in Q2 2015, reflecting higher operating expenses, particularly in research and development and selling, general, and administrative categories. This increase in expenses is attributed to investments in the upcoming Model 3, expansion of the sales and service infrastructure, and continued development of the Gigafactory. The company ended the quarter with a strong cash position of $3.25 billion, bolstered by a $1.7 billion public offering of common stock in May 2016. This capital raise, along with a $1.0 billion credit facility, provides ample liquidity to fund ongoing operations, capital expenditures for Model 3 production, and Gigafactory construction. The company also highlighted progress towards its ambitious 500,000 vehicle production target by 2018, with plans to significantly ramp up production in the second half of the year. A notable event subsequent to the quarter was the announcement of Tesla's definitive agreement to acquire SolarCity.
Financial Highlights
47 data points| Revenue | $1.27B |
| Cost of Revenue | $995.24M |
| Gross Profit | $274.78M |
| R&D Expenses | $191.66M |
| SG&A Expenses | $321.15M |
| Operating Expenses | $512.82M |
| Operating Income | -$238.04M |
| Interest Expense | $46.37M |
| Net Income | -$293.19M |
| EPS (Basic) | $-0.14 |
| Shares Outstanding (Basic) | 2.10B |
Key Highlights
- 1Total revenues increased by approximately 33% year-over-year to $1.27 billion, primarily driven by increased vehicle deliveries.
- 2The company reported a net loss of $293.2 million for the quarter, an increase from $184.2 million in the same period last year.
- 3Cash and cash equivalents significantly increased to $3.25 billion as of June 30, 2016, due to proceeds from a public offering of common stock.
- 4Operating expenses increased significantly, with R&D up 5.4% and SG&A up 59.1% year-over-year, reflecting investments in Model 3 and expansion.
- 5Tesla is targeting 50,000 deliveries in the second half of 2016 and aims for 500,000 total vehicle production by 2018.
- 6The company announced a definitive agreement to acquire SolarCity Corporation, a significant strategic move into solar energy solutions.
- 7Despite increased sales, gross margin decreased slightly to 21.6% from 22.3% year-over-year, impacted by product mix.