Communiqué de presse
Tesla Motors Reports Second Quarter Results
Strong Sequential Revenue Growth
Gross Margin Continues to Improve
Highest Roadster Orders since Q3 2008
Model S Development on Track for 2012 Launch
Deepening Relationships with Daimler and Toyota
PALO ALTO, Calif. – Tesla Motors, Inc. (Nasdaq: TSLA) today announced its preliminary unaudited financial results for the quarter ended June 30, 2010. Revenues for the second quarter of 2010 were $28.4 million, a 36% increase from the $20.8 million reported in the prior quarter. Gross margin improved to 22%, up from 19% for the prior quarter, and up from 8% for the second quarter of 2009.
Net loss for the quarter was $38.5 million as compared to $29.5 million in the prior quarter. On a non-GAAP basis, net loss for the quarter was $26.1 million as compared to a non-GAAP net loss of $23.8 million in the prior quarter, as improved gross margin was offset by increased spending on research and development and our rapid global expansion. Non-GAAP net loss excludes charges related to stock-based compensation and the change in fair value related to our outstanding warrants. A reconciliation of GAAP results to non-GAAP results is included below.
“We are very pleased to report higher gross margins and steady top-line growth, driven by our best quarter for new Roadster orders since the third quarter of 2008 and our growing powertrain activities,” said Elon Musk, CEO of Tesla Motors. “The Roadster is showing the world that it is possible to drive a beautifully designed, high-performance electric vehicle, underscoring Tesla’s technology leadership position.”
On July 1, 2010, Tesla introduced Roadster 2.5 with new styling and an upgraded interior, its fourth model in two years. Over 1,200 Roadsters are now driving in 28 countries with first sales in Canada, Japan and Hong Kong during the quarter. Customers have driven almost six million miles in their Roadsters as of July 31, 2010. Tesla opened three new stores during the quarter in Copenhagen, Zurich and Newport Beach. Leases have been signed for stores in Tokyo, Paris and Milan with openings scheduled later this year. The Odyssey of Pioneers World Tour, in partnership with Tag Heuer, arrived in the United States and continues to showcase the Tesla Roadster’s ability to travel and charge around the globe from the electric grid with ease. Twelve cities have been visited and almost 10,000 miles traveled.
The launch of the Model S in 2012 remains on track, with significant achievements in design, engineering and manufacturability during the quarter. “The engineering of the Model S continues at a rapid pace. We have completed the design of the Model S to a level of precision sufficient for us to release the CAD data to external suppliers. Laboratory testing of prototype powertrain components for the Model S has also been kicked-off,” Musk said. “Also, we announced an agreement to purchase an automobile manufacturing facility in Fremont, California from NUMMI that will become the future home of Model S production and gives us enough room to expand capacity to manufacture our next generation of electric vehicles.”
“We were especially pleased to have deepened our relationship with Daimler and established a new strategic relationship with Toyota during the quarter,” Musk continued. “We signed agreements with Daimler to develop battery packs and chargers for a pilot fleet of its A-class electric vehicles and with Toyota in July to initiate the development of an electric powertrain for Toyota RAV4 vehicles. In addition, Toyota joined Daimler as a significant investor in Tesla Motors with a purchase of $50 million of our common stock that closed concurrently with our recently completed initial public offering. We believe these relationships are strong endorsements of our industry-leading technology and electric powertrain systems.”
- The external design of the Model S has been finalized with the creation by the engineering team of a full vehicle 3D CAD package refined to typically +/- 5 mm. This level of precision has enabled the release of design to external parts suppliers.
- Tesla announced an agreement to purchase an automotive manufacturing facility in Fremont, California, formerly owned by New United Motors Manufacturing, Inc. (NUMMI) for $42 million. The facility is approximately 20 miles from the Tesla headquarters in Palo Alto, California.
- Most long lead items have already been sourced, including the 17” touch screen, instrument panel, seating, mechanical restraints, lighting systems, suspension, brakes, cells, HVAC, wheels and tires.
- Prototypes of the Model S battery and powertrain components have been manufactured and are currently being tested in-house.
- Tesla transitioned all of its powertrain manufacturing to its new corporate headquarters in Palo Alto, California.
- Tesla delivered a record number of battery packs for the Daimler Smart fortwo electric vehicle and started delivering on the initial milestones for the development of the Daimler A-class electric vehicle.
- Tesla entered into a strategic relationship with Toyota in which the companies agreed to cooperate in the development of electric vehicles. An agreement was entered into in July to initiate the development of an electric powertrain for the RAV4; prototypes are already being delivered. Toyota also invested $50 million in Tesla in a private placement that closed concurrent with Tesla’s initial public offering in July 2010.
- Tesla Motors priced its initial public offering on June 28, 2010 and closed the offering on July 2, 2010, raising approximately $184 million, net of commissions and expenses.
- Tesla hired Apple and Gap store veteran George Blankenship to head up its store design strategy and network.
Tesla will provide a live webcast of its second quarter 2010 financial results conference call beginning at 2:00 p.m. PDT on August 4, 2010 at www.ir.teslamotors.com. This webcast will also be available for replay for approximately two weeks thereafter.
About Tesla Motors
Tesla’s goal is to produce increasingly affordable electric cars to mainstream buyers – relentlessly driving down the cost of EVs. Palo Alto, California-based Tesla has delivered more than 1,200 Roadsters to customers in North America, Europe and Asia. Tesla designs, develops, manufactures and sells EVs and EV powertrain components. The Tesla Roadster accelerates faster than most sports cars yet produces no emissions.
Certain statements in this press release, including statements relating to the progress Tesla is making with respect to the development of the Model S, the ability of Tesla to source parts and to produce vehicles at its future manufacturing facility in Fremont, California, Tesla’s relationships with strategic partners, and the benefits that may be derived from such strategic relationships, and planned store openings are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties actual results may differ materially from those projected. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: risks associated with consumers’ willingness to adopt electric vehicles and Tesla’s electric cars in particular; Tesla’s ability to fully draw down on its facility from the U.S. Department of Energy; risks associated with sales of the Tesla Roadster; Tesla’s ability to execute on its plans to develop, manufacture, market and sell the planned Model S electric vehicle; Tesla’s ability to reduce and adequately control the costs associated with operating its business; competition in the automotive market generally and the alternative fuel vehicle market in particular; Tesla’s ability to establish, maintain and strengthen the Tesla brand; the unavailability, reduction or elimination of governmental and economic incentives for electric vehicles; Tesla’s ability to establish, maintain and strengthen its relationships with strategic partners such as Daimler and Toyota; Tesla’s ability to execute on its plans for new store openings and other risks detailed in Tesla’s Securities and Exchange Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in its final prospectus relating to its initial public offering filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 29, 2010. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
Non-GAAP Financial Information
Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. On a non-GAAP basis, financial measures exclude non-cash items such as stock-based compensation as well as the change in fair value related to Tesla’s convertible preferred stock warrant liability. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Tesla’s historical performance as well as comparisons to the operating results of other companies. In addition, Tesla believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla's operating performance. A reconciliation between GAAP and non-GAAP financial information is provided.
Financial information can be accessed here.
Investor Relations Contact: