An Obama Sycophant & Liar
2015-02-12 02:43:15 UTC
Tesla Motors (TSLA) said after the market closed Wednesday that
it it lost $107.6 million the fourth quarter, or $0.86 cents a
share, worse than the $74.7 million it lost a year earlier,
using conventional accounting methods.
For all of 2014, the maker of electric luxury cars reported, it
lost $294 million, vs. a loss of $74 million for all of 2013.
The automaker did say it hit its original production forecast of
35,000 vehicles in 2014 -- but didn't sell them all.
In its quarterly letter to shareholders, which is how Tesla
reports earnings, the car company said, that "delivering those
cars was physically impossible due to a combination of customers
being on vacation, severe winter weather and shipping problems
(with actual ships). As a result, about 1,400 vehicles slipped
December and were delivered in Q1. Our Q4 financials reflect
this delivery shortfall, (and) one-time manufacturing
inefficiencies."
Tesla forecast a 70% jump in deliveries to buyers this year.
Investors anticipated the bad news. Shares closed trading
Wednesday at $212.80, down $3.49, or 1.6%. They traded below the
previous day's close all day, bottoming at $207.38 during the
trading day. Within 80 minutes of closing, Tesla shares plunged
to $202.22, an intra-day low, in after-hours trades. .
Tesla noted that it counts revenue when it receives money from
buyers, while other automakers book the income when they sell
cars to dealers. Tesla sells cars directly to consumers, not
through franchised dealers -- an approached that dealers oppose
and that is illegal some places because of laws protecting the
dealer franchise system.
Tesla also books some costs differently than other automakers do.
On that basis, Tesla said, its revenue the fourth quarter was
$1.1 billion, up 44% from a year ago. Using GAAP (generally
accepted accounting principles) revnue was $957 million.
It said non-GAAP quarterly loss was $16 million, or a loss of
$0.13 per share based on 125.5 million basic shares. But the
GAAP net loss was $107.6 million.
For full-year 2014, net income was $0.14 per share on a non-GAAP
basis and a loss of $2.36 per share on a GAAP basis.
Karl Brauer, senior analyst at Kelley Blue Book, said, ""Tesla
missed most of its numbers in Q4. It was close on vehicle
deliveries but revenue and earnings were off by a wide margin.
This puts (CEO) Elon Musk under greater pressure to deliver in
2015, which likely drove his promise of 55,000 deliveries."
The car company said it "had a $86 million net cash outflow from
operations in Q4 primarily due to a $143 million increase in
finished goods inventory, primarily for cars in transit, $74
million of growth in accounts receivable related mainly to
deliveries late in the quarter and $60 million of cash used for
directly leasing vehicles. Capital expenditures in the quarter
totaled $369 million, and cash at quarter end, including cash
equivalents was $1.9 billion."
Tesla reported that automotive revenue for the fourth quarter
inculded $42 million of powertrain sales primarily to German
automaker Daimler. It also includes $86 million of total
regulatory credit revenue, of which $66 million came from the
sale of ZEV credits.
Because electric vehicles have what now are called "zero local
emissions," automakers have been able to amass clean-air credits
they can sell to others who need them to meet regulations. That
has been a key source of income for Tesla.
Tesla said its fourth quarter operating expenses were $297
million on a non-GAAP basis and $337 million on a GAAP basis. It
said that non-GAAP operating expenses were up 15% from Q3 mainly
because of expansion.
Tesla, in its quarterly letter, said, "We built 11,627 vehicles
in Q4, thus achieving our production target of 35,000 Model S
vehicles in 2014. This required a herculean effort."
No matter how well this year goes, there are lurking negatives:
The Model X, which could boost sales significantly, remains a
laggard. In the letter to shareholders, Tesla said that "Model X
development remains on plan for initial customer deliveries
starting in Q3."
However, the original plan had been to have it out first quarter
of 2014.
Poor performance in China remains unresolved.
Tesla sold only about 120 cars in China last month, Reuters
reported earlier. CEO Elon Musk had said he expected sales in
China could match those in the U.S. early this year. But the
reported China tally is only about one-tenth U.S. monthly sales.
Two top China managers left the company in 2014, Tesla said last
year.
Tesla's quarterly letter said, "Despite initial challenges in
China, we remain convinced of the vast potential of this market
and are concentrating our efforts on the cities we are in
currently, before launching into new cities.
"Our China initiatives include simplifying the buying process
there by having Tesla personnel install charging points at
customer homes or businesses well before vehicle delivery.
"We now offer a turn-by-turn navigation option in China that we
provided retroactively through a remote software upgrade to all
our customers with appropriately optioned cars, and we believe
our new executive seats and second row center console will be
quite popular with new China customers."
Musk said last month that China sales were "unexpectedly weak"
in the fourth quarter, but promised, "We'll fix the China issue
and be in pretty good shape probably in the middle of the year."
Reuters reported that Musk was more blunt in an internal email
to managers in late January, threatening to fire or demote them
if they are "not on a clear path to positive long-term cash
flow."
China is a key to Tesla's expansion plans, so the poor results
there are a threat.
Musk has said Tesla plans to boost annual production from a
projected 50,000 cars this year to 500,000 by 2020, saying that
strong markets in the U.S. and China will support such enormous
growth.
Kelley Blue Book's Brauer said, "With an all-new model launching
soon, along with increasing reliance on international markets,
2015 will be a defining year for the automaker."
http://www.usatoday.com/story/money/cars/2015/02/11/tesla-
earnings-sales-stock/23240599/
it it lost $107.6 million the fourth quarter, or $0.86 cents a
share, worse than the $74.7 million it lost a year earlier,
using conventional accounting methods.
For all of 2014, the maker of electric luxury cars reported, it
lost $294 million, vs. a loss of $74 million for all of 2013.
The automaker did say it hit its original production forecast of
35,000 vehicles in 2014 -- but didn't sell them all.
In its quarterly letter to shareholders, which is how Tesla
reports earnings, the car company said, that "delivering those
cars was physically impossible due to a combination of customers
being on vacation, severe winter weather and shipping problems
(with actual ships). As a result, about 1,400 vehicles slipped
December and were delivered in Q1. Our Q4 financials reflect
this delivery shortfall, (and) one-time manufacturing
inefficiencies."
Tesla forecast a 70% jump in deliveries to buyers this year.
Investors anticipated the bad news. Shares closed trading
Wednesday at $212.80, down $3.49, or 1.6%. They traded below the
previous day's close all day, bottoming at $207.38 during the
trading day. Within 80 minutes of closing, Tesla shares plunged
to $202.22, an intra-day low, in after-hours trades. .
Tesla noted that it counts revenue when it receives money from
buyers, while other automakers book the income when they sell
cars to dealers. Tesla sells cars directly to consumers, not
through franchised dealers -- an approached that dealers oppose
and that is illegal some places because of laws protecting the
dealer franchise system.
Tesla also books some costs differently than other automakers do.
On that basis, Tesla said, its revenue the fourth quarter was
$1.1 billion, up 44% from a year ago. Using GAAP (generally
accepted accounting principles) revnue was $957 million.
It said non-GAAP quarterly loss was $16 million, or a loss of
$0.13 per share based on 125.5 million basic shares. But the
GAAP net loss was $107.6 million.
For full-year 2014, net income was $0.14 per share on a non-GAAP
basis and a loss of $2.36 per share on a GAAP basis.
Karl Brauer, senior analyst at Kelley Blue Book, said, ""Tesla
missed most of its numbers in Q4. It was close on vehicle
deliveries but revenue and earnings were off by a wide margin.
This puts (CEO) Elon Musk under greater pressure to deliver in
2015, which likely drove his promise of 55,000 deliveries."
The car company said it "had a $86 million net cash outflow from
operations in Q4 primarily due to a $143 million increase in
finished goods inventory, primarily for cars in transit, $74
million of growth in accounts receivable related mainly to
deliveries late in the quarter and $60 million of cash used for
directly leasing vehicles. Capital expenditures in the quarter
totaled $369 million, and cash at quarter end, including cash
equivalents was $1.9 billion."
Tesla reported that automotive revenue for the fourth quarter
inculded $42 million of powertrain sales primarily to German
automaker Daimler. It also includes $86 million of total
regulatory credit revenue, of which $66 million came from the
sale of ZEV credits.
Because electric vehicles have what now are called "zero local
emissions," automakers have been able to amass clean-air credits
they can sell to others who need them to meet regulations. That
has been a key source of income for Tesla.
Tesla said its fourth quarter operating expenses were $297
million on a non-GAAP basis and $337 million on a GAAP basis. It
said that non-GAAP operating expenses were up 15% from Q3 mainly
because of expansion.
Tesla, in its quarterly letter, said, "We built 11,627 vehicles
in Q4, thus achieving our production target of 35,000 Model S
vehicles in 2014. This required a herculean effort."
No matter how well this year goes, there are lurking negatives:
The Model X, which could boost sales significantly, remains a
laggard. In the letter to shareholders, Tesla said that "Model X
development remains on plan for initial customer deliveries
starting in Q3."
However, the original plan had been to have it out first quarter
of 2014.
Poor performance in China remains unresolved.
Tesla sold only about 120 cars in China last month, Reuters
reported earlier. CEO Elon Musk had said he expected sales in
China could match those in the U.S. early this year. But the
reported China tally is only about one-tenth U.S. monthly sales.
Two top China managers left the company in 2014, Tesla said last
year.
Tesla's quarterly letter said, "Despite initial challenges in
China, we remain convinced of the vast potential of this market
and are concentrating our efforts on the cities we are in
currently, before launching into new cities.
"Our China initiatives include simplifying the buying process
there by having Tesla personnel install charging points at
customer homes or businesses well before vehicle delivery.
"We now offer a turn-by-turn navigation option in China that we
provided retroactively through a remote software upgrade to all
our customers with appropriately optioned cars, and we believe
our new executive seats and second row center console will be
quite popular with new China customers."
Musk said last month that China sales were "unexpectedly weak"
in the fourth quarter, but promised, "We'll fix the China issue
and be in pretty good shape probably in the middle of the year."
Reuters reported that Musk was more blunt in an internal email
to managers in late January, threatening to fire or demote them
if they are "not on a clear path to positive long-term cash
flow."
China is a key to Tesla's expansion plans, so the poor results
there are a threat.
Musk has said Tesla plans to boost annual production from a
projected 50,000 cars this year to 500,000 by 2020, saying that
strong markets in the U.S. and China will support such enormous
growth.
Kelley Blue Book's Brauer said, "With an all-new model launching
soon, along with increasing reliance on international markets,
2015 will be a defining year for the automaker."
http://www.usatoday.com/story/money/cars/2015/02/11/tesla-
earnings-sales-stock/23240599/