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Second Quarter 2012 Financial Results Q&A Conference Call on Jul 25, 2012 at 2:30 PM PT

Second Quarter 2012 Financial Results Q&A Conference Call on Jul 25, 2012 at 2:30 PM PT

The Q2 2012 Q&A conference call is scheduled for Jul 25, 2012 at 2:30 PM PT. Live audio broadcast will be available at:
http://ir.teslamotors.com/eventdetail.cfm?eventid=116710

I bet the number of listeners will break new records...! ;-)
(Just hoping they will be able to handle the load, technically.)

The Q2 2012 financial report with some basic news and the latest public numbers will likely be made available at the same URL shortly before the event.

mbcaffe | July 27, 2012

sorry if this already mentioned, but was anything about 40 or 60 KWH batteries mentioned on the call? I had to step out for a few minutes during the call. I did hear Elon say that replacement batteries will be better than original. Maybe that should be spinned to mean that it is like replacing the engine on an ICE car.

kevjo | July 27, 2012

My question?
Tesla is hemorrhaging cash, when will an infusion of money come and where do you expect it to come from?

Volker.Berlin | July 27, 2012

kevjo: "Tesla is hemorrhaging cash, when will an infusion of money come and where do you expect it to come from?"

Elon: "Actually, I think that there is arguably some merit to raising incremental funding just to protect against an unforeseen event. I do want to emphasize that our cash flow projections require no funding raise at all. If we do not raise any funding, we can reach cash flow positive with decent margin. [...] The only two things we’re considering are raising zero money or a small amount. There’s not some third option. Then if we raised a small amount of money, it would be probably half of it for cushion value and then half of it for future projects which would be the Model X and the Gen III."
http://seekingalpha.com/article/750201-tesla-motors-ceo-discusses-q2-201...

BYT | July 27, 2012

"Tesla is hemorrhaging cash" Tesla is building a production line and is almost done doing it, so cash will stop flowing out and will start flowing in. Also, since most cars can be built on the same power train as the Model S, you can think of this current investment as a very long term one. Elon in the conference call said they will break even by the end of this year, earlier then he said the call before that. I believe he said they would be profitable in Q2 of 2013 during the June Shareholder Meeting. You need to spend money to make money, and Tesla is doing it very thoughtfully IMHO and have nowhere to go but up. We haven't even considered much the work they are doing for Toyota and Daimler deals.

Disclaimer, I am Long on TSLA even if it's just 100 shares... :)

michiganmodels | July 27, 2012

@kevjo - Tesla lost $106 Million last quarter. Tesla has $210 Million in cash on their balance sheet. The cash infusion will come from 1) the remainder of the DOE loan 2) the 5,000 Model S' they sell. 5,000 units at an average price of $80,000 = $400,000,000.

BYT | July 27, 2012

Also forgot to mention, those aluminum stamping tools are very flexible and can adjust to many different car bodies when Tesla is ready to change things up like going Model S to Model X to GenIII to who knows??

BYT | July 27, 2012

They also have more DoE loan money that they haven't pulled out yet but plan on doing so soon.

JoeFee | July 27, 2012

@michiganmodels

"5,000 units at an average price of $80,000 = $400,000,000."

1000 @ ~95
4000 @ -85

= 435M

So what's 35M :)

michiganmodels | July 27, 2012

@joefiorell - I agree with you. I wanted to be conservative on the estimate. :-)

If the average price is $70,000 in 2013, the quarterly revenue will be "at least" $350,000,000 ($70K @ 5,000 units) :-)

Brian H | July 28, 2012

@joe and michigan;
in revenue-recognition terms, that's right, but in cash flow terms you need to take into account the differing deposits. Those move from liabilities to revenues as sales and deliveries occur, of course.

Timo | July 28, 2012

revenue will be "at least" $350,000,000

Profit will be quite a lot less than that, and profit is what really matters. Biggest question is how big profit margin do they have, I have heard numbers like 25%, and IMO that's huge number. For $80k car 25% is $20k, which would leave battery and other parts only $60k and for 85kWh battery alone costing around $34k it would be miracle if the car has quality it has. Even without profit margin this car is turning out to be better than I expect.

Brian H | July 28, 2012

Timo, there is zero (none, not any, nada) possibility that Elon doesn't know what he's saying when he claims at least 25% gross margin on every sale. Get used to it. Whether you think it is a miracle or not.

Martin was the one who thought he could manufacture for $140K and sell for $80K and make it up on volume. Which is why Elon finally had to detach him from all decision-making.

Teoatawki | July 28, 2012

+1 Brian H

I'm confident as well. I've come to the conclusion that the estimates that have been bandied about on this forum for the battery pack costs are substantially higher than Tesla's actual cost. I think you can get a pretty good discount when you're buying nearly 5M batteries for this year, and 15M+ for next year. These are based on 5000 cars this year with nearly 1000 batteries per pack for 85kWh, and averaging 750 batteries per pack for 20K+ cars next year.

Of course, when calculating gross margin, you're only considering the actual costs of materials and labor involved in producing the cars. Tesla has a big leg up there because they're fabricating so much in house.

jerry3 | July 28, 2012

- Tesla has a big leg up there because they're fabricating so much in house.

You got that right.

Timo | July 29, 2012

@Brian H, I know and I'm not complaining or seriously even doubting (though I'm skeptical person and always leave a small uncertainty factor in everything other people say, even Elon. I don't blindly believe anybody or anything). Me saying it is miracle is a compliment, not other way around. They are doing something extraordinary with very small budged. Same with SpaceX too BTW.

Brian H | July 29, 2012

@Timo;
brilliant engineering is indistinguishable from miracles? I guess it's all in what we've been trained to accept as "good enough".

As for SpaceX, I personally expect it will render the efforts of other launch designers and agencies obsolete within about 4 yrs. Including the NASA "deep space" explorations wheeze, and the Orion. If Elon manages to make all launch stages re-usable, as he intends, it's game over for everyone else.

Vawlkus | July 30, 2012

"sufficiently advanced science is indistinguishable from magic"

Paraphrased, but is it any less true?

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