Tesla Motors, Inc.
) fell 2.9% on May 7, after the automaker reported adjusted loss
(including stock-based compensation expenses) of 14 cents per share
in the first quarter of 2014, deteriorating from break-even results
recorded in the year-ago quarter. The loss was wider than the Zacks
Consensus Estimate of a loss of 10 cents.
First-quarter 2014 earnings exclude non-cash interest expenses
related to convertible notes of 7 cents per share, and deferred
gross profit of 15 cents for its Model S cars due to lease
accounting. On the other hand, first-quarter 2013 earnings exclude
the change in fair value of warrant liability of 9 cents per share.
Including these items, the company reported net loss of $49.8
million or 36 cents per share compared with net income of $11.2
million or 9 cents per share in the first quarter of 2013.
Tesla Motors, Inc - Quarterly Earnings Per
Share | FindTheBest
Excluding Model S revenues deferred due to lease accounting, top
line jumped 27% to $713 million in the quarter from $561.8 million
a year ago. Revenues also beat the Zacks Consensus Estimate of $693
Year-over-year improvement in revenues was driven by higher
vehicle deliveries. Tesla delivered 6,457 cars in the first
quarter. The automaker also benefited from the sales of electric
powertrain components to
Toyota Motor Corp.
). Tesla recently started producing powertrains for
) Mercedes B-Class, which will further boost revenues in the
Gross profit, excluding Model S gross profit deferred due to
lease accounting and stock-based compensation expenses, amounted to
$179.6 million in first-quarter 2014, against $97.9 million in the
Revenues, on a reported basis from
, jumped to $618.8 million in the quarter from $555.2 million a
year ago. Reported revenues from
(producing electric vehicle, powertrain components and systems for
other automobile manufacturers) slumped to $1.7 million from $6.6
million a year ago.
Tesla had cash and cash equivalents of $2.4 billion as of Mar
31, 2014, compared with $845.9 million as of Dec 31, 2013.
Long-term debt was $2.1 billion as of Mar 31, 2014, versus $586.3
million as of Dec 31, 2013.
Cash flow from operating activities amounted to $61 million in
the first quarter of 2014, compared with $64 million in the
year-ago period. Capital expenditures increased to $141 million
from $58 million in the first quarter of 2013.
Tesla expects to record a marginal adjusted profit in the second
quarter of 2014. Production volume in the second quarter of 2014 is
expected to increase 13-19% from the first quarter of 2014 to
Further, vehicle deliveries are expected to increase to 7,500
from 6,457 cars in the first quarter. However, deliveries are
expected to be lower than production due to increase in the number
of vehicles in transit to Europe and Asia. Tesla anticipates
delivering more than 35,000 vehicles globally in 2014, up 55% over
Tesla expects production volume to increase to 1,000 cars per
week by the end of 2014 from 700 cars per week at present.
Increased factory capacity and lower supplier bottlenecks will
drive the improvement. The shortage of battery cell supply is
expected to reduce by the third quarter.
Adjusted automotive gross margin is expected to increase to 28%
by the end of 2014. The company believes that declining parts
prices and economies of scale will benefit gross margin.
Operating expenses are expected to increase in the second
quarter of 2014. The company believes that research and development
expenses will increase 30% sequentially in the quarter. Selling,
general and administrative (SG&A) expenses are also projected
to increase 15%.
Capital expenses for the year are expected to range between $650
million and $850 million due to increasing production capacity,
expansion of stores, service and Supercharger infrastructure,
development of Model S and Model X and the Gigafactory
construction. The electric carmaker plans to install 200
Superchargers across the world this year. Free cash flow for the
year is expected to be negative.
Tesla designs and manufactures electric vehicles and electric
vehicle powertrain components for partners such as, Toyota and
Daimler. The automaker currently carries a Zacks Rank #5 (Strong
Fox Factory Holding Corp
), a Zacks Rank #2 (Buy) stock, is currently performing well in the
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