Tesla Motors Annual Report 2013: Sales, Profits & Quarterly Earnings

Tesla Motors is an American company that designs, manufactures and sells electric cars and electric vehicle power train components. It is a public company founded by Martin Eberhard and Marc Tarpenning in San Carlos, California, United States. The company was incorporated in July 2003, but remained in stealth mode until July 2006. The company first got widespread attention when it produced the first fully electric sports car, “Tesla Roadster” and this design was again followed by a fully electric luxury sedan “Model S”.

Tesla Motors is named after Nikola Tesla who was an electrical engineer and physicist in the last part of 18th century. The company uses an AC motor in ‘Tesla Roadster’ that descended directly from Tesla’s original 1882 design. Tesla Motors is the second oldest publicly listed American automaker (behind Ford). The company is presently run by Elon Musk who is the second man to have three companies in Silicon Valley, such as, PayPal (X2), Space X and Tesla Motors, that worth more than $1.00 billion in valuation.

The detailed information on Tesla’s Annual Report 2013, Annual Sales, Annual Revenue, Annual Profits and Quarterly Earnings suggests that the ten year old company has just found a foothold in the midst of a tough competitive market. The company, after 10 years of incorporation, has posted first profit during the first quarter of 2013.

Here is a synopsis of few recent key financial facts of the company:

Profitability Profit Margin (TTM) (-) 8.66%
  Operating Margin (TTM) (-) 8.14 %
Management Effectiveness Return on Assets (-) 5.83 %
  Return on Equity (TTM) (-) 50.08 %
Income Statement Revenue (TTM) $1.70 Billion
  Revenue Per Share (TTM) $14.55
  Quarterly Revenue Growth (YOY): 760.90 %
  Quarterly Earnings Growth (YOY) N/A
  Gross Profit (TTM) $30.07 Million
Balance Sheet Current Ratio (Most recent Quarter) 1.04
  Book Value Per Share (Most recent Quarter)                                             $4.60

MRQ = Most Recent Quarter (as of Sep 30, 2013)
TTM = Trailing Twelve Months (as of Sep 30, 2013)
YOY = Year Over Year (as of Sep 30, 2013)

Tesla Annual Sales, Annual Revenue, Annual Profits

The company has been able to double its total revenue in last year end. But that additional revenue could not bring any surplus to the company because the increase in revenue by 202.41% is burdened with in additional cost of goods sold by 268.72%. However, the company is new, it has just started its commercial production seven years before. There is a long way to go. It has generated a small surplus ($11.2 million) in the first quarter of calendar year 2013 but that has been counterbalanced by other huge expenses incurred during the year.

Currency in US$ (In Millions) Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Revenues 413.3 204.2 116.7 111.9
Total Revenues 413.3 204.2 116.7 111.9
Cost Of Goods Sold 383.2 142.6 86.0 102.4
Gross Profit 30.1 61.6 30.7 9.5
Total Selling General & Admin Expenses 150.4 104.1 84.6 42.2
R&D Expenses 274.0 209.0 93.0 19.3
Total Other Operating Expenses 424.4 313.1 177.6 61.4
Operating Income -394.3 -251.5 -146.8 -51.9
Interest Expense -0.3 0.0 -1.0 -2.5
Interest And Investment Income 0.3 0.3 0.3 0.2
Total Other Non-Operating Expenses -1.8 -2.8 -6.6 -2.9
Other Non-Operating Income (Expenses) -1.8 -2.8 -6.6 -2.9
Gain (Loss) On Sale Of Investments -0.1 0.1
Total Other Unusual Items 1.5
EBT, Including Unusual Items -396.1 -253.9 -154.2 -55.7
Income Tax Expense 0.1 0.5 0.2 0.0
Earnings From Continuing Operations -396.2 -254.4 -154.3 -55.7
Net Income -396.2 -254.4 -154.3 -55.7
Net Income To Common Including Extra Items -396.2 -254.4 -154.3 -55.7
Net Income To Common Excluding Extra Items -396.2 -254.4 -154.3 -55.7

The financial ratios and other cost and expenses items of the company shown in the table below suggests that the company is struggling hard to keep its loss and expenses within control. However, the company is in the early stage of operation. If it can develop cars as per their objective, there is an endless market with huge potential and bright prospect.

Financials TTM Dec 2012 Dec 2011 Dec 2010 Dec 2009 Dec 2008
Revenue USD Mil

1,705

413

204

117

112

15

Gross Margin %

19.0

7.3

30.2

26.3

8.5

-7.7

Operating Income USD Mil

-139

-394

-251

-147

-52

-79

Operating Margin %

-8.1

-95.4

-123.1

-125.8

-46.4

-532.5

Net Income USD Mil

-148

-396

-254

-154

-56

-83

Earnings Per Share USD

-1.26

-3.69

-2.53

-3.04

-0.70

Dividends USD

Profitability            
Tax Rate %

Net Margin %

-8.66

-95.88

-124.56

-132.19

-49.79

-561.54

Asset Turnover (Average)

1.15

0.45

0.37

0.45

1.23

0.34

Return on Assets %

-9.93

-43.36

-46.28

-59.76

-61.21

-191.32

Financial Leverage (Average)

3.84

8.94

3.18

1.86

Return on Equity %

-55.08

-227.22

-118.03

Return on Invested Capital %

-21.66

-72.38

-64.92

Interest Coverage

-4.48

-154.40

-21.01

-21.07

Tesla Quarterly Earnings

The company has first made a profit in the Q2 with the Net Income of $11.2 million. This was possible because it achieved maximum sell in this quarter. The percentage of Cost of Goods Sold and Total Selling General & Administrative Expenses on total Revenues between Q2 and Q4 are:

Cost of Goods Sold (%): Q2 and Q4= 82.86% and 76.16% respectively; and

Selling General & Administrative Expenses (%):Q2 and Q4= 8.38% and 17.88% respectively.

Currency in US$ (In Millions)

Sep 30, 2013

Q4

Jun 30, 2013

Q3

Mar 31, 2013

Q2

Dec 31, 2013

Q1

Revenues 431.3 405.1 561.8 306.3
Total Revenues 431.3 405.1 561.8 306.3
Cost Of Goods Sold 328.5 304.7 465.5 282.5
Gross Profit 102.9 100.5 96.3 23.9
Total Selling General & Admin Expenses 77.1 60.0 47.0 45.9
R&D Expenses 56.4 52.3 54.9 68.8
Total Other Operating Expenses 133.4 112.3 101.9 114.7
Operating Income -30.6 -11.8 -5.6 -90.9
Interest Expense -6.5 -20.1 -0.1 0.0
Interest And Investment Income 0.1 0.0 0.0 0.1
Total Other Non-Operating Expenses -0.7 1.7 17.1 0.8
Other Non-Operating Income (Expenses) 10.7 0.8
Gain (Loss) On Sale Of Investments -0.1
EBT, Including Unusual Items -37.7 -30.2 11.4 -90.1
Income Tax Expense 0.8 0.3 0.2 -0.1
Earnings From Continuing Operations -38.5 -30.5 11.2 -89.9
Net Income -38.5 -30.5 11.2 -89.9
Net Income To Common Including Extra Items -38.5 -30.5 11.2 -89.9
Net Income To Common Excluding Extra Items -38.5 -30.5 11.2 -89.9

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Sandra
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