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

    1. jry
      jry
      Age: 58
    2. Chevy Ryan
      Chevy Ryan
      Age: 43
    3. Aura XR
      Aura XR
      Age: 51
  • Similar Content

    • By dfelt
      Tesla Semi starting off with a Bang, Can Tesla Deliver?
      Tesla in the last week has gone from zero to hero in regards to helping companies that have fleets of semi trucks potentially reduce their carbon footprint. 
      Anheuser-Busch started off with pre-ordering 40 of the Semi's. This was then followed by Sysco ordering 50 themselves. This week we now hear that PepsiCo has placed an order for 100 EV Semi's. Story is all the same, reduce costs of maintenance and fuel plus adding silence into their night / early morning deliveries. 
      Sysco being one of the largest food delivery companies along with Bud's order places it at $13.5 million in semi value. PepsiCo adds another $15 million so a total of $28.5 million. Then Wal-Mart places an order for 15 of the trucks for testing with a price of $2.25 million. DHL has also ordered 10 of the Semi's for testing in the US market so another $1.5 . J.B. Hunt and Ryder truck hauling lease companies have also placed large orders they say but have declined to say how many at this time for EV Semis. This brings in the last 2 weeks since the semi's introduction about 200 pre-orders of the trucks or about $30 million book value with an unknown amount from two of the biggest leasing truck companies.
      PepsiCo has 10,000 semi's alone on the roads of North America and has a goal to reduce greenhouse gas production on the road by 30% by 2030. Seems it could be even more trucks to be ordered to help them achieve this number. Over all, Tesla has had some game changing ideas, yet with the Tesla 3 mess of building the cars, one does have to wonder if Tesla can deliver and get these trucks to market by 2019.
      It seems that this has been good for Tesla stock as the more truck orders being placed has continued to push up the stock price.
      https://binged.it/2BXGYSp
      Story References 
      Autoblog story
      Reuters Story
      Wall Street Journal Story
      Car Freaks Story
    • By William Maley
      More than 90 percent of Tesla Model S and X models that roll off the assembly line require fixes before they are shipped. This figure comes from nine former and current Tesla employees that spoke to Reuters this week citing data from the company's internal tracking system.
      At Tesla “so much goes into rework after the car is done ... that’s where their money is being spent,” said a former supervisor.
      Industry experts say it is critical for an automaker to get the quality right before initial production as repairs waste time and money. Other automakers such as Toyota only have an average of "fewer than 10 percent of their cars" requiring some sort of fix.
      Some of this can be attributed to Tesla's pressure to keep the production line moving, even when there was some sort of issue. This caused certain batches of vehicles to not have various parts such as windshields or bumpers. The understanding according to the workers is they would be fixed later.
      Other issues such as doors not closing or missing trim pieces show Tesla is still struggling with getting the basics right.
      Defects included “doors not closing, material trim, missing parts, all kinds of stuff. Loose objects, water leaks, you name it,” another former supervisor said. “We’ve been building a Model S since 2012. How do we still have water leaks?”
      Tesla calls models with quality issues “kickbacks” and are either fixed on the production line or head to one of Tesla’s outdoor parking lots for repair. According to the workers, one of the lots "has exceeded 2,000 vehicles at times".
      “Our goal is to produce perfect cars for every customer. Therefore, we review every vehicle for even the smallest refinement. Most customers would never notice the work that is done post production, but we care about even a fraction of a millimeter body gap difference or a slight paint gloss texture. We then feed these improvements back to production in a pursuit of perfection,” Tesla said in a statement to Reuters.
      The company declined to provide any post-assembly defect rates and denied those repair lots exist.
      Source: Reuters

      View full article
    • By William Maley
      More than 90 percent of Tesla Model S and X models that roll off the assembly line require fixes before they are shipped. This figure comes from nine former and current Tesla employees that spoke to Reuters this week citing data from the company's internal tracking system.
      At Tesla “so much goes into rework after the car is done ... that’s where their money is being spent,” said a former supervisor.
      Industry experts say it is critical for an automaker to get the quality right before initial production as repairs waste time and money. Other automakers such as Toyota only have an average of "fewer than 10 percent of their cars" requiring some sort of fix.
      Some of this can be attributed to Tesla's pressure to keep the production line moving, even when there was some sort of issue. This caused certain batches of vehicles to not have various parts such as windshields or bumpers. The understanding according to the workers is they would be fixed later.
      Other issues such as doors not closing or missing trim pieces show Tesla is still struggling with getting the basics right.
      Defects included “doors not closing, material trim, missing parts, all kinds of stuff. Loose objects, water leaks, you name it,” another former supervisor said. “We’ve been building a Model S since 2012. How do we still have water leaks?”
      Tesla calls models with quality issues “kickbacks” and are either fixed on the production line or head to one of Tesla’s outdoor parking lots for repair. According to the workers, one of the lots "has exceeded 2,000 vehicles at times".
      “Our goal is to produce perfect cars for every customer. Therefore, we review every vehicle for even the smallest refinement. Most customers would never notice the work that is done post production, but we care about even a fraction of a millimeter body gap difference or a slight paint gloss texture. We then feed these improvements back to production in a pursuit of perfection,” Tesla said in a statement to Reuters.
      The company declined to provide any post-assembly defect rates and denied those repair lots exist.
      Source: Reuters
    • By William Maley
      Tesla is known for building quick vehicles, but they're also known for burning through a lot of cash. Bloomberg recently crunched some numbers on how fast Tesla goes through money and the amount is quite shocking.
      According to their data, Tesla has been burning through $8,000 per minute (about $480,000 in an hour) for the past 12 months. At this rate, Bloomberg predicts that Tesla could run out of money by next August.
      Tesla spending money like it is going out of style is not all that surprising. The automaker is trying to ramp up production of the Model 3 along with dealing with various issues. Still, the $8,000 per minute figure gives us an idea of how far Tesla still has to go before exiting what it calls 'production hell'.
      Investors still are bullish on the electric car builder, with a share price of $317.81 at the close of trading yesterday. Tesla also has a market capitalization of more than $53 billion, beating the likes of Ford ($48 billion). The difference being is that Ford is able to consistently make a profit.
      Tesla says they have enough cash to meet its target of building 5,000 Model 3 sedans per week by the end of March, and expects to “generate significant cash flows from operating activities” afterward. The company is also reservations on their Roadster due in 2020* to help raise funds. Buyers will need to plop down $50,000 for the standard model or $250,000 for the Founders Edition. Tesla will only produce 1,000 models of the Founders Edition, meaning they could possibly produce $250 million in income. 
      “Whether they can last another 10 months or a year, he needs money, and quickly,” said Kevin Tynan, senior analyst with Bloomberg Intelligence. Tynan estimates that Tesla needs to raise $2 billion or more in capital by mid-2018 to stay afloat.
      Source: Bloomberg

      View full article
    • By William Maley
      Tesla is known for building quick vehicles, but they're also known for burning through a lot of cash. Bloomberg recently crunched some numbers on how fast Tesla goes through money and the amount is quite shocking.
      According to their data, Tesla has been burning through $8,000 per minute (about $480,000 in an hour) for the past 12 months. At this rate, Bloomberg predicts that Tesla could run out of money by next August.
      Tesla spending money like it is going out of style is not all that surprising. The automaker is trying to ramp up production of the Model 3 along with dealing with various issues. Still, the $8,000 per minute figure gives us an idea of how far Tesla still has to go before exiting what it calls 'production hell'.
      Investors still are bullish on the electric car builder, with a share price of $317.81 at the close of trading yesterday. Tesla also has a market capitalization of more than $53 billion, beating the likes of Ford ($48 billion). The difference being is that Ford is able to consistently make a profit.
      Tesla says they have enough cash to meet its target of building 5,000 Model 3 sedans per week by the end of March, and expects to “generate significant cash flows from operating activities” afterward. The company is also reservations on their Roadster due in 2020* to help raise funds. Buyers will need to plop down $50,000 for the standard model or $250,000 for the Founders Edition. Tesla will only produce 1,000 models of the Founders Edition, meaning they could possibly produce $250 million in income. 
      “Whether they can last another 10 months or a year, he needs money, and quickly,” said Kevin Tynan, senior analyst with Bloomberg Intelligence. Tynan estimates that Tesla needs to raise $2 billion or more in capital by mid-2018 to stay afloat.
      Source: Bloomberg
  • My Clubs

  • Who's Online (See full list)

About us

CheersandGears.com - Founded 2001

We  Cars

Get in touch

Follow us

Recent tweets

facebook

×