Tesla reports Q4 2012 revenues of $306M, delivery of approx. 2,400 Model S EVs; projecting slight profit in Q1 2013
For the fourth quarter of 2012, Tesla Motors reported total revenues of $306 million, a 500% increase over Q3. The company delivered approximately 2,400 Model S vehicles. Non-GAAP net loss for the quarter was just under $75 million; GAAP net loss was $90 million. With ongoing implementation of production and delivery efficiencies throughout the year, Tesla expects to be slightly profitable (excluding only non-cash option and warrant-related expenses) in Q1 2013.
Total revenues for the full year were $413.3 million, compared to $204.2 million in 2011. Of the 2012 revenue, $385.7 million was from automotive sales. Total GAAP net losses for 2012 were $396.2 million, with a non-GAAP net loss of $344.2 million.
Q4 also saw the completion of various milestones under the Mercedes-Benz B- Class EV program which contributed to total development services revenue of $12 million. Tesla also continued to deliver full electric powertrains at a steady pace to Toyota for the RAV4 EV program.
From Q3 to Q4, total gross margin rose from -17% to almost 8%, as a result of a higher Model S production rate, the move to production prices for certain Model S parts, sale of regulatory credits and margin contribution from development services, the company said.
Since we are now producing cars at steady state production, we have shifted our focus to cost reduction. As a result, the cost of producing Model S is beginning to decline. Our operations in 2013 are already more efficient compared to Q4, as we continue to stabilize and improve the production process. In addition, further cost reduction efforts undertaken by both us and our suppliers will continue to reduce costs in Q1 and in upcoming quarters. Consequently, we expect gross margin to continue to improve towards our 25% target by year-end.—Shareholder letter from Elon Musk and Deepak Ahuja (CFO)
The company ened the year with more than $221 million in total cash. Short term restricted cash is primarily for the second DoE loan payment due in March 2013. In Q4 2012, negative free cash flow was $102 million, down by almost 40% from the prior quarter. In the month of December, the company generated positive free cash flow, through growing sales and careful working capital management.
...net reservations at year end, were over 15,000, up from about 13,000 at the end of Q3. New reservations continue at a steady, although slower pace in Q1 2013, as compared to December, due in part to the pull ahead of reservations into Q4 by customers seeking to avoid the price increase. Q1 cancellations are likely to remain elevated as the remaining older reservation holders are invited to configure their vehicles within a set timeframe or pay the higher price just like new reservation holders.—Shareholder letter
Tesla plans to deliver about 20,000 Model S units in 2013, starting with about 4,500 deliveries in Q1. European deliveries of the Model S start this summer and Asian deliveries later this year.
Tesla said it plans to spend significantly less on capital expenditures in 2013 than in 2012, as the majority of our investment in the Tesla Factory and Model S tooling is done. This reduction will be partially offset by expenditures related to expanding the service and store network, investing in new capital equipment and tooling to reduce variable costs and new product development.