Tesla Motors Turns a Profit For the First Time

d0rp writes with news that Tesla Motors has reported earning a profit for the first time in its six-year history. Sales of the $109,000 Roadster earned the company $20 million in revenue, which settled out to $1 million in profits. "Most of that money rolled in after Tesla delivered cars customers had already placed deposits on. Although the company has, according to spokeswoman Rachel Konrad, seen a 'surge' in orders for the Roadster and the higher-performance Roadster Sport (price: $127,500), it isn't likely to keep rolling cars out so quickly. Konrad says Tesla is 'definitely on pace' to meet its goal of 1,000 to 1,200 cars a year but didn't say when that might happen. Tesla has so far delivered about 609 Roadsters since production started in March, 2008." The company is working on a new 'Model S' sedan, with the help of $465 million in government loans, and has also entered into a partnership with Daimler to help the German auto company produce electric Smart cars.

Comments

'profit' can mean different things

[lapsed]

This should be taken with a bit of skepticism. There's a difference between positive cash flow (more cash coming in than going out), positive net income (what most people think of as 'profit') and positive EBITDA (earnings before interest, taxes, depreciation, and amortization, or profit from operations). TFA doesn't mention which Tesla is reporting.

Re:'profit' can mean different things

[seanadams.com]

There are lies, damned lies, and accounting.

earnings before interest, taxes, depreciation, and amortization

The latter two of which are absolutely huge for a brand new manufacturing operation that is not running at capacity. EBITDA always makes me chuckle a little. See it started as EBIT, then became EBITDA because the PHBs said no, really we need to look profitable so we can get this loan or whatever. Pretty soon it'll be EBITDAP (payroll) and then EBITDAPHAB (hookers and blow) etc.

Kind of like how the mortgage brokers in their heyday were allowed to use a modified credit rating, essentially calculated as "here's what your credit rating WOULD be if we overlooked all the negative stuff". I wish I was kidding.