8-KMaterial Agreements

Tesla, Inc. 8-K Report, Material Agreement (Jun 17, 2011)

Filed June 17, 2011For Securities:TSLA

Summary

This Form 8-K filing by Tesla Motors, Inc. (TSLA) on June 17, 2011, details an amendment to a pre-existing Supply Agreement with Lotus Cars Limited. The amendment primarily concerns the purchase of additional "gliders" (partially assembled vehicle bodies) for the Tesla Roadster, increasing the total commitment to 2,500 units and extending the agreement's term to January 31, 2012. This adjustment will enable Tesla to continue Roadster sales into the first half of 2012, ensuring a supply of vehicles to meet ongoing demand. The key takeaway for investors is Tesla's proactive management of its supply chain to support continued production and sales of its flagship Roadster model. The increased order from Lotus signals continued confidence in Roadster demand and the company's ability to secure necessary components for manufacturing, which is crucial for maintaining revenue streams and operational momentum as the company progresses.

Key Highlights

  • 1Tesla Motors, Inc. amended its Supply Agreement with Lotus Cars Limited.
  • 2The amendment increases the purchase of vehicle gliders from Lotus by an additional 100 units.
  • 3The total number of vehicles/gliders to be purchased under the agreement reaches 2,500 units.
  • 4The agreement's term has been extended, now ending on January 31, 2012.
  • 5This amendment ensures Tesla can continue selling Roadsters into the first half of 2012.
  • 6The original Supply Agreement was dated July 11, 2005, and pertained to assembly and manufacturing services for the Tesla Roadster.

Frequently Asked Questions

The main purpose of the amended agreement is to secure an additional 100 vehicle gliders from Lotus Cars, bringing the total commitment to 2,500 units. This allows Tesla to continue producing and selling its Roadster model into the first half of 2012.

The amended supply agreement with Lotus Cars Limited now has an expiration date of January 31, 2012.

In this context, a 'glider' refers to a partially assembled vehicle body or chassis provided by Lotus, which Tesla then completes with its own powertrain and components to create the final Tesla Roadster.

This specific filing pertains solely to the Tesla Roadster supply agreement with Lotus. While it ensures continued Roadster production, it does not directly provide information on the impact on the production of other models.