Tesla Motors, Inc.
) got a major boost after the company posted a narrower loss in
the second quarter of 2013. The Palo Alto, CA-based automaker
logged a loss of $30.5 million or 26 cents per share in the
reported quarter lower than a loss of $105.6 million or $1.00 per
share recorded in the year-ago quarter.
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Barring one-time items other than stock-based compensation
expenses, earnings were 5 cents per share in the quarter compared
with the prior-year loss of $1.00 a share. That compares
favorably with the Zacks Consensus Estimate of a loss of 36 cents
Revenues jumped manifold year over year to $405.1 million in the
quarter from $26.7 million a year ago, beating the Zacks
Consensus Estimate of $395 million.
Production went up 25% to 500 vehicles per week and the company
delivered 5,150 cars in the quarter. Tesla benefited from rising
demand for Model S, which in turn was driven by geographic
expansion and higher sales of powertrain component sales to
Toyota Motor Corp.
) for the RAV4 EV.
Revenues in the Automotive sales segment jumped to $401.5 million
in the quarter from $22.1 million a year ago. Revenues in the
Development services (produces electric vehicle, powertrain
components and systems for other automobile manufacturers)
declined 21.6% to $3.6 million from $4.6 million a year ago.
Tesla's shares jumped as much as around 15% in pre-market
trading, reflecting the better-than-expected results.
Tesla had cash and cash equivalents of $746.1 million as of Jun
30, 2013, compared with $201.9 million as of Dec 31, 2012.
Long-term debt was $578.7 million as of Jun 30, 2013, versus
$452.3 billion at the end of 2012.
Cash flow from operating activities increased substantially to
$25.9 million in the first half of 2013 from cash outflow of
$127.6 million in the same period of 2012. Capital expenditures
fell to $98.2 million from $112.8 million in the first half of
Tesla anticipates delivering little over 5,000 Model S vehicles
in the third quarter of 2013 and 21,000 vehicles globally in
2013. Gross margin will remain in the low 20% range for the
second half of 2013 while adjusted gross margin is expected to
improve to reach the company's target of 25%.
Further, the company believes that research and development
expenses will increase significantly due to accelerated product
development. SG&A expenses will also increase in future due
to hike in retail locations, service centers and Supercharger
facilities. Capital expenditures are expected to be $150 million
for the second half of 2013.
Tesla designs and manufactures electric vehicles and electric
vehicle power train components for partners including Toyota and
). Recently, shares of Tesla hit a new 52-week high of $145.73 on
Tesla retains a Zacks Rank #2 (Buy).
Ford Motor Co.
) a Zacks Rank #2 (Buy) stock is performing well in the industry
where Tesla operates.