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Mercury C557
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Tesla sets Q2 sales record, but losses grow
Full-year delivery forecast lowered
AutomotiveNews

Gabe Nelson Google Plus RSS feed
August 5, 2015

With the first deliveries of its Model X less than two months away, Tesla Motors Inc. reported today that its net loss nearly tripled to $184 million in the second quarter, underscoring how crucial the rollout of the crossover is for the electric-vehicle maker.

The Palo Alto, Calif., company reported $955 million in second-quarter revenue, an increase of 24 percent from the second quarter of 2014, according to generally accepted accounting principles. Measured using Tesla’s preferred non-GAAP accounting method, the company’s net loss was $61 million on $1.2 billion in revenue.

Tesla also reported producing a record 12,807 vehicles in the third quarter at its factory in Fremont, Calif., beating its goal of 12,500...

...Tesla will produce the Model X on the same general assembly line as its Model S sedan, which could slow down overall production if there are snags during the ramp-up of the new product, CEO Elon Musk and soon-to-depart CFO Deepak Ahuja wrote in a letter to shareholders (link @ AN)...

...Once production of the Model X has ramped up, Musk said, Tesla’s factory would have capacity to build 1,000 units of the Model S and 1,000 units of the Model X per week. He said Tesla aims to build an average of 1,600 to 1,800 vehicles a week.
 

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Mercury C557
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Discussion Starter #2
more of a snip than a representative quote...

Insight: Tesla burns cash...
AOL/
Thomson Reuters
JOSEPH WHITE AND PAUL LIENERT - Aug 9th 2015


...Tesla has signaled capital spending will drop next year because the company won't be spending on a major vehicle launch. In 2017, Tesla plans to launch its Model 3 line, which the company says will start at about $35,000 and push total sales toward the goal of 500,000 vehicles a year by 2020.

Barclays analyst Brian Johnson disagreed with the company's estimates, and said he expects Tesla's capital spending will go up in 2016 and 2017 as the company ramps up its battery factory and Model 3 development. "Their small scale means the cash generation is not as great as they might have hoped for," he said.

Musk said this week Tesla expects to have $1 billion in cash over the next year, and told analysts "there may be some value" in raising capital "as a risk reduction measure."

Tesla's stock is still about 70 percent higher than it was two years ago, and 8 percent ahead of its level on Jan 1. With a market capitalization of $31 billion, Tesla is worth more than Fiat Chrysler Automobiles NV, the much larger maker of Ram pickups and Jeep Grand Cherokees.

"A capital raise, given the way they're burning cash today, given the fact that they have future investment needs, seems very likely at some point," said UBS Securities analyst Colin Langan, who has a sell rating on the stock.

Musk has steered Tesla out of tight corners before. In September 2012, the company faced a cash crunch, but raised money by selling shares and renegotiating the terms of a federal loan. The Model S started production in miod-2012.

Tesla has made moves to expand sales volume, and lure people to pay more for its vehicles. In addition to adding a lower priced version of the Model S, Tesla last month said it would offer performance upgrades for its Model S 85 and 85D for $5,000 and launched the Model S 90D and P90D high performance cars at a $10,000 price premium.

Tesla reports its finances in a different way from the Detroit automakers. Using the generally accepted accounting principles, or GAAP, used by GM or Ford, Tesla's operating losses per vehicle have steadily widened to $14,758 from $3,794 in the second quarter of 2014.

But Tesla points out in its statements to investors that its GAAP accounting excludes certain revenue and profits from Model S sedans that customers lease. In the second quarter, the deferred gross profits from Model S leases amounted to $61.9 million, Tesla said. Analysts say they add back the deferred revenue to make Tesla's figures more comparable to the reporting used by other automakers.
 

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Tesla is in the process of launching a new SUV, new compact sedan and building the first ever Gigafactories for EV batteries. This is similar groundwork that Ford had to pay for launching 30+ models globally, and the launch of the Lincoln brand, and Ford's profits are starting to roll in. Tesla will be just fine.

The Model X will do very well for Tesla. Sales should double with adding that model alone.
 

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Mercury C557
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Discussion Starter #4
Re: pre-X sales record but higher losses...

Does Tesla lose $4,000 on each Model S? No
But Does It Make Money On Each One? Also No

Autoblog

Sebastian Blanco
Aug 10th 2015


There are a lot of headlines out there saying that Tesla Motors is losing $4,000 for each Model S it sells. This is technically true, but it's not as simple as saying that each of these high-tech EV costs $74,000 to make but Tesla only sells them for $70,000. Here's why.

First, lets start with where the numbers come from. Last week, Tesla announced its second-quarter earnings, and in that release, it said that it delivered 11,532 cars in April, May and June of 2015. In that time, it also had an operating loss of around $47 million. A little bit of math later, you find that that comes to about $4,000 per car. So far, so good.

The issue is that all that money, all $47 million (and then some), was not spent just on building and delivering Model S vehicles. As the main source of this number (Reuters) points out:


Automakers consume cash to pay for assembly line equipment, including metal dies and plastic molds, as well as testing to meet safety and emissions standards. A typical new car can cost $1 billion or more to engineer and bring to market...

...[Tesla] said it plans $1.5 billion in capital spending this year, mainly to launch its Model X, battery powered sport utility vehicle with eye-catching, vertical-opening 'falcon wing' doors. Tesla reported $831 million in capital spending during the first half of the year, indicating it will spend roughly another $700 million.


In other words, at least some of that $47 million was "lost" by spending money for the future. Tesla spend $359 million last quarter alone as it works on things like the Gigafactory and getting its plant ready to build the Model X this fall...
 

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Mercury C557
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Discussion Starter #7
Here's How Elon Musk Gets Tesla to 500,000 Cars a Year by 2020
For once, Elon Musk may be right on schedule

Bloomberg

Tom Randall

...The problem with placing bets on Tesla’s future is that there are few examples to compare it with...
...When has another startup tried to do so much, so quickly? There’s really only one example, the original game changer: Ford Motor's Model T. Here's how the trajectories of Elon Musk and Henry Ford match up:

Of course, this isn't the first time Musk has been compared to Ford, but the parallel in the production data is striking. Tesla first surpassed 10,000 deliveries in 2013—the same milestone Ford hit in 1909. By 1916—just seven years later—the Model T hit Musk’s goal right on schedule and produced 501,462 cars. Maybe the 2020 plan isn't out reach for Tesla...
 

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