Tesla Motors Inc. (NASDAQ:TSLA) Finishes Q3 With “Record” Car Sales
Tesla Motors Inc. (NASDAQ:TSLA) has announced its third quarter earnings results. The company reported third-quarter earnings excluding items of $0.12 per share on non-GAAP revenue of $603 million, compared with a loss of $0.92 per share on revenue of $50 million last year.
The third quarter non-GAAP revenues were up by 9% from the second quarter of 2013, while GAAP revenues were $431 million, up 6% from Q2.
The company finished the quarter by selling a record 5,500 cars, which includes over 1,000 deliveries in Europe. The company said it supplied over 1,000 cars in Europe in the third quarter, as compared to zero deliveries in the second quarter of this year. This marks as a significant achievement for the company. Tesla, in its report said it is now making 550 cars a week.
“We achieved record levels of Model S production, deliveries and vehicle gross margin in Q3,” said Elon Musk, chairman and chief executive officer of Tesla Motors. “This performance drove positive free cash flow and our third consecutive quarter of non-GAAP net income, while supporting substantial investments in future growth and customer support infrastructure.”
In Q32013, the company said it generated $26 million of positive free cash flow, “a new record for positive cash flow generated in any quarter,” Tesla said in its earnings statement.
At the end of the quarter, Tesla Motor’s total cash was $796 million, an increase of $49 million from previous quarter.
The company will continue to expand production and aim to deliver slightly under 6,000Model S vehicles in the fourth quarter of 2013, which will increase Tesla’s total expected deliveries to 21,500 cars globally for 2013.
To cope up with battery supply constraints, Tesla Motors is even looking at building its own lithium-ion battery manufacturing unit. Calling it to be “world’s largest lithium-ion battery plant”, the company’s CEO Musk, in a conference call, said the unit would be probably built in North America.
Despite reporting positive earnings, Tesla’s shares still fell over 10% on the news of “record” third quarter. It should be noted that Tesla Motors is seen as one of the profitable carmaker in coming years. Mercedes-Benz-maker Daimler AG (USA) (OTCMKTS:DDAIF), along with Toyota Motor Corporation (ADR) (NYSE:TM), are both Tesla investors and customers.