Jump to content
dfelt

Tesla Reports First Profit after 12 Quarterly Losses!

Recommended Posts

G. David Felt
Staff Writer Alternative Energy - www.CheersandGears.com

 

Tesla Reports First Profit after 12 Quarterly Losses!

Tesla.jpg

Surprise, Surprise, Tesla posts a $22 million profit for it's latest quarter. How did Tesla do this?

Wall Street Story

WSJ reports that Tesla reports the following numbers:

Selling pollution tax credits to other auto makers. Gross profit from the credits soared to $139 million from $39 million a year ago.

Revenue is up to $2.3 billion from $936.8 million a year earlier.

Tesla said it generated free cash flow, repaid $600 million in debt and finished September with $3.1 billion in cash, a decline of $162 million from the end of June.  

Tesla also lowered its forecast for capital spending this year to $1.8 billion from $2.25 billion. About $1 billion of that spending could occur in the fourth quarter, it said.

Shares were up 5% to $212.05 in after-hours trading on Wednesday.

WSJ says this has been helped by Tesla's newest Model S version that starts now at $66,000 which contributed greatly to their bottom line as the Q3 was the first full quarter of Entry level Model S sales.

Barclays auto analysts has stated that Tesla will need $2.5 billion through the end of 2017 for the Model 3 rollout and completion of the battery factory.

WSJ Web Page Story

  • Upvote 1

Share this post


Link to post
Share on other sites

Eh, positive, but they're not out of the woods yet. They're only profitable this quarter because they sold a lot more pollution credits.... they still aren't profitable yet from selling consumer products. 

Share this post


Link to post
Share on other sites
11 minutes ago, Drew Dowdell said:

Eh, positive, but they're not out of the woods yet. They're only profitable this quarter because they sold a lot more pollution credits.... they still aren't profitable yet from selling consumer products. 

Someone said that with just the model S,they are profitable, and a lot of the loss is due to trying to bring the X and the 3 online.

I am still not sure I see them surviving long term, sadly.

Share this post


Link to post
Share on other sites
2 minutes ago, A Horse With No Name said:

Someone said that with just the model S,they are profitable, and a lot of the loss is due to trying to bring the X and the 3 online.

I am still not sure I see them surviving long term, sadly.

I also wonder especially now that they are buying Solarcity. How will all that expense flush out.

Share this post


Link to post
Share on other sites
23 minutes ago, dfelt said:

I also wonder especially now that they are buying Solarcity. How will all that expense flush out.

Not very well.  Methinks this is why Elon Musk keeps talking about Mars....a diversion from the failures in the home office.

Share this post


Link to post
Share on other sites
8 minutes ago, Drew Dowdell said:

Solar City is actually doing pretty well I thought.  They're one of the largest solar installers in the US and probably the most well known.

Hopefully if costs keep coming down...

Share this post


Link to post
Share on other sites
31 minutes ago, Drew Dowdell said:

Solar City is actually doing pretty well I thought.  They're one of the largest solar installers in the US and probably the most well known.

I was not to aware of how they are doing, but like the idea of merging to allow Tesla to sell a complete Wall with charging panels as a one stop solution. What I do remember was that his cousin who was running Solarcity was not doing that great of a job I thought.

Either way, I think the merge of Solarcity with Tesla is a win win.

Share this post


Link to post
Share on other sites
3 hours ago, Drew Dowdell said:

Eh, positive, but they're not out of the woods yet. They're only profitable this quarter because they sold a lot more pollution credits.... they still aren't profitable yet from selling consumer products. 

Article above says credits sales rose $100M, but revenue went up $1.3B, so it's not primarily from credit sales.

That said, I believe, given Tesla's track record, that this is more 'juggling' rather than a hard turn towards solvency.

Also note that IF the boost is due to the new lowest base price Model S, Tesla just announced the cancellation of the lowest base price Model X.

In the woods, indeed.

Share this post


Link to post
Share on other sites
2 minutes ago, balthazar said:

Article above says credits sales rose $100M, but revenue went up $1.3B, so it's not primarily from credit sales.

That said, I believe, given Tesla's track record, that this is more 'juggling' rather than a hard turn towards solvency.

Also note that IF the boost is due to the new lowest base price Model S, Tesla just announced the cancellation of the lowest base price Model X.

In the woods, indeed.

To me, it was much simpler math.  Profit was $22 million, but credit sales rose $100 million. That means building cars was still losing money for them. (Credit sales are nearly 100% profit.)

I.E. they were profitable due to credit sales. 

Share this post


Link to post
Share on other sites
4 hours ago, Drew Dowdell said:

To me, it was much simpler math.  Profit was $22 million, but credit sales rose $100 million. That means building cars was still losing money for them. (Credit sales are nearly 100% profit.)

I.E. they were profitable due to credit sales. 

And they are still fundamentally burning tons of cash in not terribly rational ways.

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoticons maximum are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Today's Birthdays

    No users celebrating today.
  • Similar Content

    • By William Maley
      Tesla's production hell seems to be only getting worse than better. Various issues at their Freemont plant has caused the automaker to push back their goal of producing 5,000 Model 3s from late last year to June of this year. This, in turn, has caused some holders of Model 3 reservations to have their order pushed back to 2019.
      “As we work hard to meet demand, we wanted to let you know that your estimated delivery timing has been adjusted to a slightly later window,” Tesla said in an email to customers.
      According to Bloomberg, the new date depends on when the reservation was placed and what model was chosen. Tesla is trying to get the more expensive long-range battery model out first before starting production of the cheaper standard battery model. This has buyers of the latter model worried as they might not get the full $7,500 tax credit. The credit begins to phase out once an automaker has built 200,000, something Tesla expects to hit sometime this year.
      The move has caused some reservation holders to take to various forums and Twitter to complain. Others are deciding to jump ship and buy a Chevrolet Bolt. Reuters reports that Chevrolet dealers in California are seeing a noticeable increase of Tesla shoppers interested in the Bolt.
      “We’re getting the Tesla people who wanted their Model 3. We ask them, ‘What other cars are you interested in?’ They’re mostly Tesla. But they want the car now. They don’t want to wait,” said Yev Kaplinskiy of Stewart Chevrolet.
      Kaplinskiy said they sold 15 Bolts last weekend.
      Chevrolet is taking advantage of the delay by emailing some prospective buyers this week with the message of, “Bolt EV: Now available.”
      Source: Bloomberg, Reuters

      View full article
    • By William Maley
      Tesla's production hell seems to be only getting worse than better. Various issues at their Freemont plant has caused the automaker to push back their goal of producing 5,000 Model 3s from late last year to June of this year. This, in turn, has caused some holders of Model 3 reservations to have their order pushed back to 2019.
      “As we work hard to meet demand, we wanted to let you know that your estimated delivery timing has been adjusted to a slightly later window,” Tesla said in an email to customers.
      According to Bloomberg, the new date depends on when the reservation was placed and what model was chosen. Tesla is trying to get the more expensive long-range battery model out first before starting production of the cheaper standard battery model. This has buyers of the latter model worried as they might not get the full $7,500 tax credit. The credit begins to phase out once an automaker has built 200,000, something Tesla expects to hit sometime this year.
      The move has caused some reservation holders to take to various forums and Twitter to complain. Others are deciding to jump ship and buy a Chevrolet Bolt. Reuters reports that Chevrolet dealers in California are seeing a noticeable increase of Tesla shoppers interested in the Bolt.
      “We’re getting the Tesla people who wanted their Model 3. We ask them, ‘What other cars are you interested in?’ They’re mostly Tesla. But they want the car now. They don’t want to wait,” said Yev Kaplinskiy of Stewart Chevrolet.
      Kaplinskiy said they sold 15 Bolts last weekend.
      Chevrolet is taking advantage of the delay by emailing some prospective buyers this week with the message of, “Bolt EV: Now available.”
      Source: Bloomberg, Reuters
    • By dfelt
      Tesla Worst Quarterly Loss & Expected to Grow Short-term
      Tesla release the following details for their 4th quarter of 2017:
      Tesla Investor Event & Details
      15,200 Model S deliveries
      13,230 Model X deliveries
      1,550 Model 3 deliveries
      2,520 Model S & X in Transit
      860 Model 3 in Transit
      Net Loss $675.4 Million or $4.01 per share from $121.3 million or .78 cents per share a year. 
      Revenue Rose to $3.29 Billion from $2.28 Billion
      Gross Margin fell to 13.8% from 22.2% below the 15.7% expected by Analysts.
      Excluding items, the company lost $3.04 per share, Analysts were expecting $3.12 per share.
      Tesla is now the 2nd most valuable US auto company behind GM which reported a net revenue of $145.6 Billion for 2017.
    • By dfelt
      Tesla Wagon production has begun in UK.

      Start with a Model S P90 and deconstruct the rear, add a carbon fiber rear addition and lift gate and you have the Tesla Wagon that went from a 26.3 cubic feet of interior space to an SUV-like 33.7 cubic feet, that is 7.4 additional cubic feet of space. This enhanced Wagon added a total of 26 pounds to the finished weight and is still faster than the Mercedes-benz AMG E63 wagon.
      This whole project came about by a guy who got his Tesla S and then realized his Four legged friends could not be in the far back comfortably. What you end up with is a new company called QWESTNORFOLK and they are now taking real orders for people who want a feature rich EV 4 door wagon.
      According to the interview that was done by Hybrid Cars, (web site) This was all done use established auto part suppliers in Europe meaning that
      there glass, rear window wiper, electrical bits, etc. can be easily obtained.
      Everyone is writting about it this week but the auto is here is functional now. 
      Wonder how many will actually get built? Europe does like their wagons and EVs and this is both.





    • By dfelt
      Elon Musk Compensation Update
      Seems the board is holding Elon Musk to a compensation plan that is all stock for hitting deliverables and taking the company to a $650 Billion value. First stock options kick in at $100 Billion and then every $50 Billion after that. He is not being paid cash or any other awards especially with the slip in Tesla 3 production.
      12 year vesting period
      Stock grants only based on achieving milestones
      Must stay as CEO or serve at Chairman of the board and Chief product officer. Currently no changes in existing roles.
      Full Story here
       
  • My Clubs

  • Who's Online (See full list)

About us

CheersandGears.com - Founded 2001

We  Cars

Get in touch

Follow us

Recent tweets

facebook

×