Tesla Motors Inc.
) kept its promise of paying off the $465 million U.S. Department
of Energy (DOE) early and its actually turned out much earlier!
The electric carmaker received the loan in Jan 2010 and agreed on
a 10-year repayment program. However, the situation became so
much favorable that the company repaid the full outstanding
amount of the loan in the second installment itself.
Last December, Tesla made its first DOE loan repayment of nearly
$13 million. Yesterday, the company paid off the remaining $451.8
million using the near-$1 billion proceeds from the common stock
and convertible senior note offering made last week.
Tesla's share prices started soaring following the reports of its
first-ever quarterly profit on May 8. After the earnings release,
share price surged as much as 57.2%.
On May 14, Tesla shares hit new 52-week high of $97.12, which is
above its previous level of $88.00 a day before. The last closing
price of $87.24 represented a whopping one-year return of 183.2%
and year-to-date return of 146.7%.
Last week, Tesla offered 2.7 million shares and $450 million in
convertible debt due in 2018. Tesla had also given a 30-day
option to its underwriters to buy an additional 405,454 common
shares and $67.5 million in notes.
Tesla's chief executive officer and cofounder Elon Musk plans to
purchase $100 million worth of shares at the same public
offering. Currently, Musk holds about 27 million shares of Tesla,
which is equivalent to roughly 24% of the company's outstanding
In 2012, Tesla lost $396.2 million or $3.69 per share compared
with $254.4 million or $2.53 per share in 2011. Due to a good
start in 2013, the company had expected to repay its DOE loan
much earlier and boost production of vehicles to lower production
Tesla reported its first-ever quarterly profit of $15.4 million,
or 12 cents per share (on an adjusted basis) in the first quarter
of 2013 compared with a loss of $79.3 million or 76 cents in the
corresponding quarter of 2012. This indicated a whopping positive
earnings surprise of 271.4% given the Zacks Consensus Estimate of
a loss of 7 cents for the quarter.
Revenues jumped manifold to $561.8 million from $30.2 million in
the first quarter of 2012. Thanks to the impressive 5,000 units
of Model S electric car sales during the quarter.
The automaker continued to supply full electric powertrains and
battery packs to
Toyota Motor Corp.
) for their RAV4 EV program. It also completed various
) Mercedes Benz B-Class EV program, which contributed to total
development services revenues of nearly $7 million.
Tesla expects to manufacture 5,000 Model S vehicles in the second
quarter of the year. For full year 2013, the company expects to
deliver 21,000 Model S cars globally, up 5% from its prior
guidance of 20,000 units.
Shares of Tesla retain a Zacks Rank #3, which implies a
short-term (one to three months) Hold rating. Currently,
) with Zacks Rank #2 (Buy) is performing well in the broader
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