Tesla Motors, Inc.
) dropped 12.9% to $154 in after-hours trading as the company
posted a loss in the third quarter of 2013. The Palo Alto-based
automaker logged adjusted loss (including stock-based
compensation expense) of 4 cents per share in the third quarter
of 2013, which was narrower than the loss of $1.04 per share
recorded in the year-ago quarter. This compared unfavorably with
the Zacks Consensus Estimate of break-even results.
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Third-quarter 2013 earnings exclude non-cash interest expense
related to convertible notes of 3 cents per share and deferred
gross profit for Model S due to lease accounting of 21 cents. On
the other hand, 2012 earnings exclude unfavorable change in fair
value of warrant liability of 1 penny per share. Including these
items, the company reported net loss of $38.5 million or 28 cents
per share compared to $110.8 million or $1.05 in the third
quarter of 2012.
Revenues, excluding Model S revenue deferred due to lease
accounting, jumped manifold to $602.6 million in the quarter from
$50.1 million a year ago, beating the Zacks Consensus Estimate of
Year-over-year improvement in revenues was driven by higher
vehicle deliveries and increase in average selling price of the
vehicles together with a better mix of cars. The increase in
average selling price resulted from the initiation of vehicle
deliveries in Europe. Tesla also benefited from the sales of
electric powertrain components to
Toyota Motor Corp.
) for the RAV4 EV.
Tesla delivered 5,500 cars in the third quarter, of which 1,000
vehicles were delivered to Europe. The automaker plans to enhance
its production capacity further to meet the rising demand.
Gross profit amounted to $134.6 million in third quarter of 2013,
against a loss of $8.3 million in the year-ago quarter.
Revenues on a reported basis from Automotive sales jumped to
$430.2 million in the quarter from $50 million a year ago.
Reported revenues from Development services (produces electric
vehicle, powertrain components and systems for other automobile
manufacturers) increased to $1.2 million from $0.08 million a
Tesla had cash and cash equivalents of $795.1 million as of Sep
30, 2013, compared with $85.7 million as of Sep 30, 2012.
Long-term debt was $582.5 million as of Sep 30, 2013, versus $465
million as of Sep 30, 2012.
Cash flow from operating activities amounted to $128.2 million in
the first nine months of 2013, compared with cash outflow of
$228.6 million in the same period of 2012. Capital expenditures
fell marginally to $174.8 million from $175.2 million in the
first nine months of 2012.
Tesla anticipates delivering marginally less than 6,000 Model S
vehicles in the fourth quarter of 2013 and 21,500 vehicles
globally in 2013. Adjusted profits are expected to be in line
with the third quarter of 2013.
Adjusted automotive gross margin is expected to reach the
company's target of 25% in the fourth quarter of 2013. The
company believes that declining manufacturing costs will benefit
gross margin over the next few quarters.
Further, the company believes that research and development
expenses will increase 25% sequentially in the fourth quarter of
2013 due to increased efforts on development of Model X and Model
S enhancements. SG&A expenses are also projected to increase
by 20% due to increase in retail locations, service centers and
Supercharger facilities. Capital expenditures are expected to be
around $75 million to $85 million for the fourth quarter and
about $250 million for 2013.
Tesla designs and manufactures electric vehicles and electric
vehicle powertrain components for partners including Toyota and
). The automaker currently retains a Zacks Rank #3 (Hold).
Ford Motor Co.
), a Zacks Rank #1 (Strong Buy) stock, is performing well in the