Tesla Stock Rises 8.9 percent Despite Q3 Loss

Tesla Motors, Inc. yesterday released its quarterly performance figures to investors. Despite a net loss of $111 million in the third quarter, Tesla’s stock rose nearly 9-percent, closing at $31.50 per share November 5 on the NASDAQ market.

In its report Tesla’s Q3 revenues were $50 million, an 88-percent increase from the prior quarter, attributing the gain to increased deliveries of Model S, continued sales of the remaining Roadsters internationally, and an increase in powertrain component sales to Toyota for the RAV4 EV.
Additionally the company expects revenue of $400 – $440 million this year, and 2,500 – 3,000 Model S deliveries to customers in Q4.

Along with a projection of a two-fold production increase from 200 to 400 cars per week in a month’s time, Tesla told investors it expects by the end of 2012 “to get approximately halfway to the 25 percent gross margin target” for 2013. However, the company’s gross margin in Q3 was a negative 17-percent.

If Tesla can maintain the doubled weekly production it will manufacture approximately 20,000 cars in 2013. Regardless of the enthusiasm of its report, it seems the company has some serious ground to cover in the next three months to meet those production goals.

In Q3 Tesla said it produced 350 Model S cars, and delivered 250. As Automotive News notes in its report, the delivered cars were the premium-level Signature editions of the Model S that wear a base MSRP of $95,400.

“Tesla is really past the point of high risk,” Elon Musk, Tesla CEO, said in a call with analysts. “Several months ago, I said that the coming several months would really be the test for Tesla and the classic phrase of going through the valley of death. I feel as though we are through that valley at this point.”

The performance report also noted that the company continues its obligation to the $465 million U.S. Department of Energy loan, and that it’s maintaining “a strong relationship with the DoE.”

Automotive News

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  • Anonymous

    Awesome, they are ramping up their production. Go invest in Tesla stock. This could become Apple of Automobiles.