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Tesla Loses $49.8 Million In Q1 2014, Panasonic On Board With Gigafactory
The Truth About Cars ^ | May 8, 2014 | Derek Kreindler

Posted on 05/10/2014 6:09:13 PM PDT by jjotto

Although Tesla reported a profit of $17 million on $713 million in revenue, their financials were reported using non-GAAP (Generally Accepted Accounting Principles) figures. Which means that my current checking account, according to non-GAAP figures, is probably somewhere in the high seven figures.

Using GAAP numbers, Tesla lost nearly $49.8 million, on revenues of $620 million. Despite the loss, Tesla delivered 6,457 units, and expects to sell 35,000 Model S units this year. Tesla also announced that their Model X SUV will be delayed again, until 2015.

But the bad news was interrupted today by a major development for Tesla. Panasonic, a major supplier of battery cells to Tesla, signed a letter of intent regarding their new “Gigafactory” that will build lithium-ion batteries somewhere in the Southwestern United States.


TOPICS: Business/Economy; Science; Travel
KEYWORDS: electric; tesla
Angling for a sale to a deep-pockets owner.
1 posted on 05/10/2014 6:09:13 PM PDT by jjotto
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To: jjotto

I think they lose money on every sale but they are hoping to make it up on volume


2 posted on 05/10/2014 6:12:45 PM PDT by al baby (Hi Mom…)
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To: jjotto

Or, an Obama taxpayer cash influx.


3 posted on 05/10/2014 6:14:00 PM PDT by Sasparilla
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To: jjotto

Or, an Obama taxpayer cash influx.


4 posted on 05/10/2014 6:14:01 PM PDT by Sasparilla
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Aside from where I live, where thy are all over the damn place, I have a hard time believing there is much market left for these cars.

Maybe we’ll see a movie called “Musk” in 40 years...about the other evil companies running him out of business


5 posted on 05/10/2014 6:14:48 PM PDT by KneelBeforeZod (I have five dollars for each of you)
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To: jjotto

Until someone invents perpetual motion or a micro-nuclear powered or hydrogen engine, nothing is going to replace the internal combustion engine and good-old fashioned gasoline.


6 posted on 05/10/2014 6:16:10 PM PDT by Extremely Extreme Extremist (100% pure organic, free-range conservative)
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To: KneelBeforeZod

Never seen one.

This actually makes some sense. Mahindra to build electric scooters in Ann Arbor Michigan. Sounds like they intend to cater to college students in college towns.

http://www.mlive.com/business/ann-arbor/index.ssf/2014/05/mulitbillion-dollar_india-base.html


7 posted on 05/10/2014 6:20:36 PM PDT by cripplecreek (Remember the River Raisin.)
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To: jjotto

Crony capitalism.


8 posted on 05/10/2014 6:38:03 PM PDT by VRWC For Truth (Roberts has perverted the Constitution)
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To: Extremely Extreme Extremist

there are 150 mpg diesel/water engines by volkswagon and they won’t let them in the country.

you can do a great mpg improvement with gas/water engines but we can’t do that because it gives people too much freedom and ability to travel without paying govt those pesky gas taxes.


9 posted on 05/10/2014 7:27:01 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: jjotto

Generated $60 million in cash from operations. EPS is about the worst measure of financial success of a company there is. My company lost $2 billion GAAP in 2009 and we were far better off by the end of that year. It’s all about cash.


10 posted on 05/10/2014 7:36:49 PM PDT by Wyatt's Torch
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To: KneelBeforeZod

I see them everywhere. Probably 7-10 a day. I wish I had a spare $100K to get one. Friend of mine just got one and he says it’s the best car he’s ever driven (had Mercedes, Lexus, BMW). But TSLA’s future is not in $100K + cars. It’s in the $50,000 market and making batteries.


11 posted on 05/10/2014 7:39:22 PM PDT by Wyatt's Torch
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To: cripplecreek
CC... This conversation below was about A2, funny it may have a been ahead of it's time after this announcement...

http://www.freerepublic.com/focus/news/3102230/posts?page=8#8

Make it 3 wheel, maybe of the "tilting" type 3 wheelers and enclose it for 3 seasons, and you got a winner. Can't ride these 2 wheel scooters in the Winter even on U of M campus where even in that Socialist Utopia they still get snow, sleet, and hail.

12 posted on 05/10/2014 7:49:25 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks....)
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To: taildragger

They ride bicycles over there all winter, they can ride 2 wheelers but a 3 wheeler would be better (And considerably more expensive)


13 posted on 05/10/2014 7:53:27 PM PDT by cripplecreek (Remember the River Raisin.)
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To: Wyatt's Torch

Tesla’s “cash” comes from Zero Emissions Vehicle credits.


14 posted on 05/10/2014 8:04:24 PM PDT by jjotto ("Ya could look it up!")
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To: jjotto

Except they didn’t. From the Q filed Friday:

“During the three months ended March 31, 2014, we did not recognize any ZEV credit sales and we expect the contribution of ZEV credit revenue to remain low in the future relative to our automotive sales as we continue to grow our sales outside the United States. “


15 posted on 05/10/2014 8:29:24 PM PDT by Wyatt's Torch
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To: Wyatt's Torch

Right. Without ZEV credits they lost money. But hey, they still have cash flow. Worked for years for General Motors.


16 posted on 05/10/2014 8:33:09 PM PDT by jjotto ("Ya could look it up!")
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To: jjotto

No actually they had to record $45 million of non-cash stock comp and non-cash interest expense according to GAAP. Which shows that EPS is completely worthless as a measure of financial success.


17 posted on 05/10/2014 8:53:12 PM PDT by Wyatt's Torch
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To: jjotto
Angling for a sale to a deep-pockets owner.

I doubt it. Deep pocket owners in the auto industry don't seem to do well with innovation.

What's to stop Tesla from one day selling a car with a hybrid engine, or a diesel, or any other powerplant?

I wouldn't bet against them.

18 posted on 05/10/2014 8:56:24 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: jjotto

They were breakeven on an EBITDA basis and that INCLUDES the $45 million in non-cash expenses. The $60 million cash from operations included increasing inventory by $197 million. That’s a lot of working capital changes to overcome.


19 posted on 05/10/2014 9:01:14 PM PDT by Wyatt's Torch
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To: al baby

Reminds me of the story about the man who bought a truck load of watermelons for a dollar each and sold them for a dollar each. That night he and his wife sat down at the kitchen table and tallied the day’s receipts. When the figures were totalled the man looked at his wife and said “I’m going to have to get a bigger truck.”


20 posted on 05/10/2014 9:47:26 PM PDT by VerySadAmerican
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To: cripplecreek
Interestingly, I saw one for the first time tonight as I was driving home from work.

Very sharp looking.

But ALL that I was thinking is: Wow! Someone is very rich and has money to spare, just to show off.

At 100K/per, you could buy a really nice ride.

Time will tell just how "great" Tesla is.

21 posted on 05/10/2014 11:13:28 PM PDT by boop (I just wanted a President. But I got a rock.)
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To: jjotto
I know, I know, Tesla is evil because it has used (and no doubt wasted) government funding.

I still want to like the company. A Tesla is a great gadget.

22 posted on 05/10/2014 11:53:21 PM PDT by TChad (The Obamacare motto: Dulce et decorum est pro patria mori.)
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To: Secret Agent Man
"there are 150 mpg diesel/water engines by volkswagon and they won’t let them in the country."

Those are located on the shelves buried under the Ford Rouge Plant, along side the 99 mpg carburetors.

23 posted on 05/11/2014 5:13:14 AM PDT by norwaypinesavage (The Stone Age didn’t end because we ran out of stones)
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To: TChad

All the large businesses have government funding, so government could claim credit for everything.


24 posted on 05/11/2014 1:19:08 PM PDT by 4rcane
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