![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Wednesday, August 07, 2013 10:49:16 PM
Not a basher or pumper. But this is interesting. I hold no position just came across this article
Tesla Reports a Profit (Sorta) While Elon Musk Shoots Self in Foot
BY DAMON LAVRINC08.07.13
Photo: Jim Merithew/WIRED
Tesla Motors’ second-quarter numbers are out, and depending on how you figure profit, the electric automaker either made $26.2 million or lost $30.5 million. Also, Elon Musk regrets ever mentioning the Hyperloop.
First, let’s talk profit. Tesla’s net income for Q2 was $26 million, an increase of 70 percent from Q1. However, that’s not using the Generally Accepted Accounting Principles (GAAP) math — or non-GAAP. If you apply GAAP, Tesla lost over $30 million. How?
Tesla included its lease accounting into this quarter’s results, something that’s not approved by GAAP. Slate explains that Tesla “rolled out an innovative loan/purchase/buyback scheme that lets people basically lease the cars but with Tesla getting all the money up front via a financing arrangement with Wells Fargo or US Bank.” Essentially, Tesla got all the cash for the expensive Model S sedans it sold and rolled that into this quarter’s income. That’s not allowed under GAAP, hence the discrepancy.
Even Deepak Ahuja, Tesla’s CFO, admitted early on in the earnings call that, “this is a confusing quarter.”
Overall revenue also took a slight hit due to the reduction in zero emission vehicle credits (ZEV) that Tesla sells to other automakers. Tesla reports it’s boosted output from 400 vehicles per week to 500 in an attempt to account for the reduction in ZEV credits. It also deserves noting that the automaker has announced plans to purchase a 31-acre parcel next to its Fremont factory for expansion, so expect that to put a hurt on profits in the future.
So, math out of the way, how is Tesla doing? In a word: well.
The automaker delivered 5,150 Model S sedans during the quarter, but only expected to get 4,500 into customer hands. That brings the total number of all-electric cars running around the U.S. to over 13,000, and demand is growing, particularly outside the state of California where you can’t swing a dead iPhone without hitting a Model S.
Tesla estimates total Model S sales could exceed 40,000 by late 2014, but co-founder and CEO Elon Musk was unabashedly irritated by the lack of output from Tesla’s suppliers. “It’s pointless to push volume when you don’t have the production to meet it,” Musk said during the call. It’s obvious that Tesla’s suppliers didn’t take the automaker seriously and now they’re trying to churn out as much as they can while keeping quality up to the level Tesla demands.
Additionally, the automaker delivered its first European Model S this week, is working on a right-hand drive version for other markets, and is busting hump to develop a Model S for China. According to Musk, that model will have “an executive back seat” for a country that prefers to be driven rather than drive.
Tesla has also made some changes to the options list on the Model S, finally breaking out the delectable performance package goodies for lesser models, adding a new sub-zero weather package, upgraded leather interior, new wheel options (for both performance and efficiency) and a teak-style center console for the floor. Slick.
Musk also talked about the forthcoming launch of the Model X, which is starting to move up on Tesla’s priority level. The “Falcon-wing” SUV based on the Model S is due to arrive in late 2014. There was also discussion of the “third-generation”, high volume model that’s due out in a few years. Musk says that Tesla is intent on delivering an all-electric sedan that’s sized around a BMW 3 Series, has a range of 200 miles, and costs $35,000 — not including any federal or state rebates. Ambitious. And what about competition from BMW in the form of the newly announced i3? “There’s room to improve on the i3,” says Musk. “And I hope they do.”
Finally, on the upcoming Hyperloop announcement on Monday, Musk had this to say, “I think I shot myself in the foot by ever mentioning the Hyperloop.”
However, he re-confirmed his commitment to publishing detailed designs of the yet-to-be-seen high-speed people mover next week, but is content to sit on the sidelines and let others work out the dirty bits.
“[The Hyperloop] can just be out there as an open source design that people can keep improving,” Musk said. “I don’t have any time to focus on it as I have to focus on Space X and Tesla.”
RELATEDYOU MIGHT LIKESTORY RESOURCES
Peek Inside Tesla's Robotic Factory
The i3 is BMW's Ultimate Electric Driving Machine
Recent TSLA News
- Doordash and Deliveroo Terminate Talks; Universal Announces UK Theme Park Plan, and More News • IH Market News • 06/26/2024 11:08:35 AM
- SolarEdge Stock Falls 13%, Wegovy Approved in China, Grail Nasdaq Debut, Apple Rejects Meta Chatbot • IH Market News • 06/25/2024 10:36:11 AM
- UPS Divests Coyote Logistics in $1.025 Billion Deal with RXO, Under Armour Agrees to $434 million Settlement, and More News • IH Market News • 06/24/2024 11:00:20 AM
- Trump Media Resells Stocks and Warrants; KB Home Exceeds Q2 Expectations, and More News • IH Market News • 06/20/2024 10:55:11 AM
- Fisker Files for Bankruptcy, Chegg Stocks Rise on 23% Workforce Reduction, and More • IH Market News • 06/18/2024 11:02:13 AM
- Goldman Sachs Raises S&P 500 Forecast for 2024; Disney Secures Deadpool & Wolverine in Chinese Cinemas, and More • IH Market News • 06/17/2024 10:49:12 AM
- Adobe Soars 15% Pre-Market; Visa and Mastercard Encounter Hurdles in $30 Billion Agreement, and More • IH Market News • 06/14/2024 11:21:47 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/14/2024 10:02:55 AM
- Tesla Releases Results of 2024 Annual Meeting of Stockholders • Business Wire • 06/14/2024 03:10:00 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/13/2024 09:24:14 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/13/2024 08:22:12 PM
- Tesla Surges 5% in Pre-Market; Virgin Galactic Drops 9% Following Reverse Stock Split, and More News • IH Market News • 06/13/2024 11:24:25 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/13/2024 10:02:30 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/12/2024 08:50:43 PM
- Paramount Ends Skydance Talks, Oracle Shares Surge 8.7% on New Partnerships, and More News • IH Market News • 06/12/2024 11:19:10 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/11/2024 09:16:59 PM
- Form PX14A6G - Notice of exempt solicitation submitted by non-management • Edgar (US Regulatory) • 06/11/2024 08:47:02 PM
- FDA Panel Supports Eli Lilly’s Donanemab, Rio Tinto Expands Stake in Boyne Smelters, and More News • IH Market News • 06/11/2024 11:11:40 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/10/2024 09:00:37 PM
- Apple Showcases AI at WWDC 2024, Nvidia Stock Split Starts Today, and More News • IH Market News • 06/10/2024 11:29:44 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:46:36 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/07/2024 09:23:23 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/06/2024 09:23:35 PM
- Nvidia Becomes 2nd Most Valuable Company in the USA, ASML Takes 2nd Spot in Europe, and More News • IH Market News • 06/06/2024 11:34:59 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/06/2024 01:51:51 AM
FEATURED POET Wins "Best Optical AI Solution" in 2024 AI Breakthrough Awards Program • Jun 26, 2024 10:09 AM
HealthLynked Promotes Bill Crupi to Chief Operating Officer • HLYK • Jun 26, 2024 8:00 AM
Bantec's Howco Short Term Department of Defense Contract Wins Will Exceed $1,100,000 for the current Quarter • BANT • Jun 25, 2024 10:00 AM
ECGI Holdings Targets $9.7 Billion Equestrian Apparel Market with Allon Brand Launch • ECGI • Jun 25, 2024 8:36 AM
Avant Technologies Addresses Progress on AI Supercomputer-Driven Data Centers • AVAI • Jun 25, 2024 8:00 AM
Green Leaf Innovations, Inc. Expands International Presence with New Partnership in Dubai • GRLF • Jun 24, 2024 8:30 AM