Quarterly shareholder letters, with accompanying financial results, are
an opportunity for companies to crow about their recent progress and
instill excitement about future expectations. Tesla Motor's latest such release reveals it's coop is rife with roosters in full song. And for good reason.
The California automaker announced today it earned $46 million in 4th
quarter of 2013 on a non-GAAP basis – under generally accepted
accounting principles (GAAP), which calculates leasing and stock-based
employee remuneration differently, it actually lost $16 million –
selling 6,892 very lovely Model S
electric sedans in the process. Further, it passed its predicted 25
percent gross profit margin on its cars, hitting 25.8 percent on a
non-GAAP basis. This means, for the fiscal year of 2013 it sold 22,477
vehicles in total and had over 2.5 billion in (non-GAAP) sales, which
includes, of course, supply and development deals with Toyota and Daimler.
TSLA has jumped to a record high in the $217 neighborhood.
That's pretty durned good, and the stock market would seem to agree.
With the financials results dropping just after the NASDAQ's close, the
price for
TSLA has jump
around 12 percent – over $23 as of this writing – to a record high in
the $217 neighborhood. Those share price increases aren't just based on
past performance, though. The info drop also included plenty of things
to indicate the future bodes well. The company expects both sales and
production to continue to rise throughout 2014, with a new assembly line
expected to help churn out 1,000 cars per week in the 3rd quarter and
profit margins projected to hit 28 percent by the end of the year.
On the demand side, Tesla's CEO
Elon Musk
stated during the conference call that he doesn't expect the company to
be able to meet the demand that's coming from China. Its new Beijing
store is now the company's biggest and busiest and deliveries don't even
begin until spring. While European sales are a little slower than
anticipated, the exec said he believes it will improve as soon as the
company irons out a few technical difficulties that have arisen with
charging amongst the different territories there. Apparently, not all
power grids operate in exactly the same way.
Quarterly shareholder letters, with accompanying financial results, are
an opportunity for companies to crow about their recent progress and
instill excitement about future expectations. Tesla Motor's latest such release reveals it's coop is rife with roosters in full song. And for good reason.
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