Tesla narrows net losses for Q4 and full year 2013

Article by Anita Panait, on February 21, 2014

Tesla Motors Inc. was able to cut its net losses in the fourth quarter of 2013 to $16 million from $90 million a year earlier. The carmaker posted a 43-percent year-on-year rise in fourth-quarter revenues to $615 million and had a 26-percent quarterly jump in non-GAAP revenues during the period of $761 million.

Tesla logged $46 million in profit based on non-GAAP accounting standards during the fourth quarter of 2013, compared to $75 million in losses during the same quarter in 2012.

According to Tesla, it sold 6,892 cars in the fourth quarter and 22,477 in full year 2013. The EV maker built more cars in the fourth quarter than planned, and was able to benefit from lower vehicle costs, mainly via component expense cuts and manufacturing efficiencies.

During the quarter, Tesla received $13 million in revenues from powertrain-sharing programs with Toyota and Daimler, and $15 million in regulatory credit revenue.

Tesla’s fourth quarter results were also boosted by a $5-million net gain from favorable foreign currency rates. For the full year 2013, Tesla narrowed its net loss to $74 million from $396 million as annual revenue leaped 387 percent to $2 billion from $413 million.

Tesla is expecting a 55-percent jump in deliveries in 2013 to over 35,000 globally. The company expects Model S production to surge from 600 cars a week to about 1,000 cars a week by the end of the year. For the first quarter of 2014, Tesla expects to deliver 6,400 vehicles, but said that Model S output will be limited by battery cell supplies in the first half of the year.

It is quite safe to say the new Tesla Model S all-electric sedan is a groundbreaking vehicle that sets new expectations for the modern car. Boasting of a healthy fusion of performance, safety and efficiency, the new Model S also has the longest range among electric vehicles and takes pride in the fact that it continuously improves through over-the-air software updates.

Underpinning the safe character of the new Model S is the fact that it is underpinned by Tesla’s innovative platform. This platform allowed Tesla to position the battery pack of the Model S on the floor, thereby giving the all-electric sedan a low center of gravity. Having a low center of gravity means a minimized risk of rollover as well as higher levels of handling and performance. Moreover, since the Tesla Model S has no engine, its crumple zone is larger than other performance sedans, allowing it to better mitigate the impact of a front-end collision.

It is worthy to note that that the reputation of the Model S as one of the safest cars on the road is also thanks to the fact that its electric drivetrain sits beneath the electric sedan. This also gives the Model S a low center of gravity.

To prove its safety record, the new Model S has already gained the highest safety rating from the NHTSA and the Euro NCAP. It also holds the record of the lowest chances of occupant injury, following tests in the United States.

The new Model is also laden with a number of active safety features like automatic emergency braking and blind spot detection as well as collision warning and lane departure warning. Optional features include traffic-aware cruise control and autosteer as well as autopark and summon.

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Topics: tesla, loss



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