Tesla Motors Inc (TSLA) Sept. Quarter 10-Q [ANALYSIS]

Tesla stockBlomst / Pixabay

For the September quarter, Tesla Motors Inc (NASDAQ:TSLA) reported revenue of $146 million, with 34% of the total from Europe in automotive sales that started in August, while for the United States, total revenue came in at $285 million and 66% of total, according to a detailed analysis of the company’s 10-Q by Chuck Jones at Forbes.

Europe accounted for 34% of revenues

On splitting the leasing revenue along the same percentage, around 3,650 cars were sold in the United States, and around 1,970 cars were sold in Europe.

Tesla Motors Inc (NASDAQ:TSLA) maintained a provision of $18.4 million for warranty in the September quarter, or 3.0% of the revenue. For fiscal 2013, the total accrued amount comes in at $44 million, which is 2.5% of revenue.

The average car price is $108,000 for the quarter after deducting Development services and Powertrain sales from total sales. Tesla provided resale guarantees to 31% of North American vehicles in the June quarter, compared to 44% in the September quarter.

In its filing, the company stated that there could be a negative or positive effect on the gross margin as the company spends on developments or services to third parties like Mercedes-Benz or Toyota, due to the timing when revenue or expenses are incurred.

Production for Tesla Model X to start in late 2014

For the last quarter of fiscal 2013, Tesla expects R&D expense to increase 25% quarter on quarter while SG&A expenses are expected to surge 20% quarter on quarter. Capital expenditure is expected to be in the range $75 and $85 million in the December quarter.

Finished goods inventory escalated from $77.9 million in the June quarter to $102.4 million in September quarter backed by the cars shipped to Europe, which would come around 225 units, according to the author

Tesla Motors Inc (NASDAQ:TSLA) mentioned in the filing that the Powertrain component and related sales dropped from $10.4 million in the September 2012 quarter and $13.3 million in the June 2013 quarter to $8.2 million in the September 2013 quarter. Powertrain sales to Toyota for the RAV4EV declined from $10.4 million last year to $7.2 million in the September quarter.

Tesla provided information about $660 million in convertible notes that can be exchanged for common stock in the December quarter, but “the 5.3 million share dilution has been largely hedged,” says the author.

Tesla reported that the Model X is scheduled to go into production in late 2014, and full-fledged production will start in the second quarter of 2015.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

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