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Tesla Logged $713 Million In Revenue In Q1 and Built 7,535 Cars

Posted by samzenpus on from the numbers-are-in dept.

cartechboy (2660665) writes "Tesla just announced its first-quarter earnings and the numbers are interesting. It logged revenue of $713 million on deliveries of 6,457 Model S electric cars. It's worth noting that's basically the number of vehicles it said it would sell in the quarter, but that number is slightly down from the prior quarter. It built a total of 7,535 Model S cars in the quarter as it built inventory as shipments began to China where sales just started last month. Net orders in North America grew 10 percent, and production for the second quarter is expected to increase to 8,500-9,000 Model S cars. Tesla expects to deliver 35,000 cars during the 2014 calendar year. Musk told analysts that China's enthusiastic and that government support is crucial. The Model X is delayed until spring of 2015 with production-design prototypes being ready in the fourth quarter. Tesla hopes to possibly break ground as early as next month on its gigafactory, though the location has yet to be announced. Of course, the stock market is already reacting to these numbers and is currently down nearly 3 percent in after hours trading."

27 of 131 comments (clear)

  1. Down 3%?! by korbulon · · Score: 5, Insightful

    Well thank goodness the stock market is such an accurate gauge of a company's fiscal health and true value (right Facebook?) It's all rational investors making carefully considered trades in an open and transparent marketplace.

    1. Re:Down 3%?! by gl4ss · · Score: 2

      it's all about what the expected report was vs. what the report really was. because the market prior to the report was at the level of the expectation.

      supposedly anyways. some people just forget they own something until the report hits their inboxes..

      --
      world was created 5 seconds before this post as it is.
    2. Re:Down 3%?! by 89cents · · Score: 2

      Look at the pre-market line. The 3% was for Wednesday. Down around 9% now.

    3. Re:Down 3%?! by StripedCow · · Score: 2

      Well thank goodness the stock market is such an accurate gauge of a company's fiscal health and true value

      Of course it is. We have high-frequency traders ensuring this, at millisecond precision!

      --
      If Pandora's box is destined to be opened, *I* want to be the one to open it.
    4. Re:Down 3%?! by fnj · · Score: 4, Insightful

      Fine. What I see is a goddam good time to invest.

    5. Re:Down 3%?! by alexander_686 · · Score: 2

      Right - If Tesla sells it's own stocks those funds are treated as cash flow. If Tesla issues bonds that would be treated as cash flow. Both of these end up on the balance sheet as either equity or a liability. In neither case does it show up on the income statement as profit or revenue.

      As a side note, Tesla can only dilute it's own stock by issuing new stock as long as investors have a long term positive view on it's profitability. The more shares you issue the more you dilute any future profit that a single share has claim to, reducing the price of that stock.

    6. Re:Down 3%?! by sumdumass · · Score: 3, Interesting

      Damn phone sent my reply too soon.

      People who invest in things like Tesla doesn't always do it for hand over fist profit. They sometimes do it because they support the objectives of the company or that is aided by the company's operations. There is an entire industry related to investing based on your social concious. They don't typically earn as much money as other investments bur they know that going in.

      So yes, yes i would grab a parking spot when people are fleeing a burning skyscraper. Its because my mind set might be to put the fire out or help injured people comming down instead of being safe and secure far away. I kniw that analigy sucks but a burnibg skyscraper and investing is hard to tie together when the reasoning isn't exactly obvious.

    7. Re:Down 3%?! by korbulon · · Score: 2

      Every analyst knows how and why stocks drop 3% after good news. You don't.

      "Papa Smurf always says..."

    8. Re:Down 3%?! by tlhIngan · · Score: 2

      Yes, but they are not doing another offering. If you buy Tesla stock today, you are not buying it from the company. You are buying it from a third party who holds it today. Tesla does not see a dime of the exchange of their previously issued shares between you and someone else. Additionally, secondary offers of new shares are very uncommon.

      Long story short: when you buy a stock, you are not giving any money to the company you invested in. Your purchase can help them indirectly - pushing up their stock price improves their ability to borrow, attract new employees with stock incentives, etc. - but if you want to help them directly, buy a car. Or go to one of their concerts.

      It also affects what the company does. As a stockholder, you have a say in the way the company is run.

      Now, if you buy stock because you believe in Tesla, then you're likely to vote in ways that are good for the company's future. If you bought the stock from an investment company, it means the voice of "profits profits profits dammit" goes down, and the voice of "environmentally friendly cars" goes up.

      For example, a few months ago, an Apple stockholder demanded Apple stop trying to do so many profit-cutting "green" initiatives, in the name of more profits and money. He was soundly voted off so well that even Tim Cook could say "If you're not aligned with Apple's principles, including environmental practices, do not own Apple stock".

      Remember when complaining about CEOs who only care about this quarter and not the future of the company? That's an edict usually issued by the Board of Directors, who gets their orders from the shareholders. If all the shareholders cared about are short term profits, well, the company will focus more on short term profits. If the shareholders cared about long term prospects, environmental responsibility, and other factors, well, the board and CEO will be forced to care about them too.

  2. Odd numbers by geogob · · Score: 3, Interesting

    There is a lot I don't understand at financial reports, but these numbers really strike me as odd.
    How can you have a revenue of 731 M$ while producing in the same period about 500 M$ worth of merchandise? Said otherwise, for each car produced in Q1, they have a revenue of about 100 k$. I know the Tesla is not a cheep car, but that seems excessive. Or did I miss something here?

    1. Re:Odd numbers by alexander_686 · · Score: 4, Informative

      Service for current vehicles.
      Powertrains for Toyota's RAV4.
      They sell fuel credits to other companies that make polluting vehicles.
      etc.

      Lots of this and that.

    2. Re:Odd numbers by dj245 · · Score: 2

      There is a lot I don't understand at financial reports, but these numbers really strike me as odd. How can you have a revenue of 731 M$ while producing in the same period about 500 M$ worth of merchandise? Said otherwise, for each car produced in Q1, they have a revenue of about 100 k$. I know the Tesla is not a cheep car, but that seems excessive. Or did I miss something here?

      Companies make money in lost of ways. If you can't understand the financial statement or how the company makes their money, don't invest in the company! No matter what!

      I adopted this policy a short time ago and it has been a much better strategy than others I have tried. If you are want to start looking at simple financial reports, the easiest example I can think of is RICK's Caberet (RICK). Another simple business (aquire ships, lease them out) is Navios Maritime Holdings Inc. (NM), although I have marine experience so I understand this business better than many people might. Fly Leasing Ltd (FLY) is a reasonably simple business (aquire airplanes, lease them out) also. Keep looking at smaller companies with easy to understand business models, they generally have much simpler financial reports. It isn't reasonable for a person just learning this stuff to be able to understand a large and complicated business.

      I don't take a stand on either buying or selling any of the companies I have listed, they are provided only as examples of reasonably simple financial reports.

      --
      Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
  3. At a loss by jamesl · · Score: 3, Informative

    Not mentioned in the post for some reason was the loss of $49.8 million for the quarter compared to an $11.3 million profit in the same quarter last year. Accumulated losses since 2009 are on the order of $800 million.
    http://files.shareholder.com/d...

    Making cars is hard. Making a profit doing it is harder still.

    1. Re:At a loss by AmiMoJo · · Score: 5, Informative

      They were not planning to make a profit at this point. It's part of the long term strategy. Fancy that, a CEO who can see past the next quarter's results!

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  4. Re:Sponsor? by Anonymous Coward · · Score: 4, Insightful

    Looking at the big picture I think any Elon Musk story is kind of interesting. He is an uber geek trying to shift the world to sustainable energy and colonize Mars. Fast Cars and Rocket Ships are every kids dream as they said on 60 minutes.

  5. Re: Sponsor? by Anonymous Coward · · Score: 2, Interesting

    This is a site for nerds. Name a nerdier topic than Tesla.

  6. going off-grid by quenda · · Score: 2

    Looking at the spec's: a 60 kWHr battery! With that plugged into my house and an array of photovoltaics on the roof, I can tell the electric authority to go **** themselves. (In Western Australia we pay 26c/kWHr, despite having massive natural gas and coal reserves locally. Plus supply charge.)

    Figuring that in the Tesla does not look quite so expensive. And as a bonus I can look down on all those carbon-polluting Prius drivers.
    So the question: will they allow me to use the Tesla battery while parked, or will that kill the battery as surely as my 8-year warranty?

    1. Re:going off-grid by fnj · · Score: 3, Informative

      A 60 kWh battery, assuming you don't mind cycling it to 100% discharge, which is extremely severe treatment, represents about 3-4 days of electricity for a house with very light electricity use based on my electric meter, and those of people I know. OTOH, where I am, sunlight is not uncommonly extremely poor for periods longer than that. Unless your photovoltaics are over proportioned by 10-20 times, or you've got at least twice the battery, it ain't gonna cut it.

      It would be nice to be able to tap the battery with an inverter during power outages though. In my area when you lose power, you lose water supply (and heat of course). Not very good for sanitation. There's nothing to make you appreciate flush toilets more than 2-3 days without well water.

    2. Re:going off-grid by AmiMoJo · · Score: 5, Interesting

      Your house is very inefficient, but not untypical of some parts of the world.

      Nissan has been offering this service for a few years in Japan. You use your Leaf as a UPS in the event of power failure. They say you can run your essential appliances (fridge/freezer, lighting) for a few days. You can also use it for a bit of solar PV smoothing. It isn't really designed to let you go off-grid though.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  7. Re:Sponsor? by 91degrees · · Score: 2

    All we need is for Tesla to start accepting Bitcoins and Slashdot will implode. Or gain sentience. Or something.

  8. Re: Sponsor? by TeknoHog · · Score: 5, Funny

    This is a site for nerds. Name a nerdier topic than Tesla.

    1. Hot grits
    2. Natalie Portman naked and petrified
    3. Beowulf clusters
    --
    Escher was the first MC and Giger invented the HR department.
  9. Nothing odd at all by sjbe · · Score: 5, Informative

    How can you have a revenue of 731 M$ while producing in the same period about 500 M$ worth of merchandise?

    Because Tesla doesn't just make money selling cars. Read their financial statements and they'll detail their sources of revenue. Nothing particularly surprising there. Honestly I wouldn't be surprised to see Tesla end up making a big portion of their revenue manufacturing battery packs and power trains for other auto makers.

    1. Re:Nothing odd at all by alexander_686 · · Score: 3, Insightful

      For the battery packs, I would be surprised. The Gigafactory that Tesla is building will be majority owned by Panasonic. i.e., it is a Panasonic factory, building Panasonic batteries, but it is being built for Tesla, with Tesla money. It is “Tesla” factory because they will be getting the output.

      I know that Tesla is looking for better battery solutions but I have not heard that they have come up with anything.

  10. Re:Slashdot Finance by Sique · · Score: 2

    You got to the wrong site then. If the bakery next door doesn't sell you screws, it's you who screwed up by asking for screws in the bakery.

    --
    .sig: Sique *sigh*
  11. Re: Sponsor? by impossiblefork · · Score: 3, Interesting

    Computer holography, Path-tracing, the fast-multiple methods for radiosity-- and if it has to be automotive related: alternative thermodynamic cycles for engines, field modulated magnetic couplings (like the ones magnomatics are making as gearboxes/electric drive systems for cars) or mass-production of parts from fibre reinforced plastic.

    All of these are nerdier, but perhaps not as easily digested.

  12. Re:Milliseconds ? by jandrese · · Score: 2

    The very very small times.

    --

    I read the internet for the articles.
  13. Re:Sponsor? by NetNed · · Score: 2

    I also like how the 60 minutes fluff piece said he started Tesla because of a concern for what greenhouse gases from fossil fuel burning automobiles was doing to the ozone layer, then in the very next shot is a rocket from his company spewing smoke from propellant at a rate that pretty much wipes out any gains the cars will make for so, oh, about 1000+ years. Of course my vehicle doesn't release hydrogen chloride or chlorine directly in to the ozone. But yeahhhhhhhh that Elon Musk is AWSOME!!!