Tesla's Q3 Losses Widen

Derek Kreindler
by Derek Kreindler

Tesla recorded a third-quarter loss of $110.8 million, versus a $65.1 million loss in the third-quarter of 2011.

While anaylsts had expected lower losses (in the 90 cent/share range, versus $1.05/share recorded by Tesla), revenues exceeded projections as well, with $50 million booked in this quarter, versus projections of $48 million.

Production of the Model S has been coming online slowly but surely. Reuters reports that

The company said in a letter to shareholders posted on its website that weekly Model S production had risen to 100 cars by the end of the quarter and was now up to 200. By December, it will be making 400 cars per week, Tesla said.

While we’re still waiting on a proper review of the Model S, our initial impressions were much better than Tesla’s results this quarter.

Derek Kreindler
Derek Kreindler

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  • Bunkie Bunkie on Nov 05, 2012

    If Tesla manages to survive and succeed, we will have gotten way more than our money's worth. Compared to, say, the F-35 program (one half-trillion dollars and counting without any deployable aircraft), it's peanuts. As others have said, there's something either naiive or disingenuous about failing to complain about LockMart while frothing at the mouth over Tesla. At least some people are driving Teslas while no one yet is on the receiving end of ordnance from the F-35. By the way, I'm not anti-defense, but the F-35 program is a disaster and likely to be largely obsolete (because of advances in unmanned aircraft) by the time it becomes operational in any significant quantities. And then there's the fabulous Constellation that was supposed to be the replacement for the space shuttle. That's $15-20 billion gone with nothing to show. Meanwhile, Musk has produced not only a launch vehicle (the Falcon 9) but a working capsule as well (the Dragon). He's on track to build an even larger launch vehicle (the Falcon Heavy) that will continue his record of drastically lowering launch costs. For that reason alone, I'm inclined to buy a Tesla. He's done more for the American space program in the last ten years than Boeing, LockMart and Northrop-Grumman combined and for far less money. Sorry if this sounds like a rant, but it galls me that we have someone who, more than anyone, embodies the spirit of Heinlein's Man Who Sold the Moon and all we get, it seems, is an emphasis on "bad" news.

    • SCE to AUX SCE to AUX on Nov 05, 2012

      I was once a fan of the F-35 (and I still think it's a beautiful aircraft), but you're right on all points. The Constellation debacle is a national disgrace. Mr. Musk has done what many men dream of but few (actually none) actually accomplish. I sincerely hope Tesla can turn the corner and stay in business without subsidies.

  • Conslaw Conslaw on Nov 05, 2012

    In theory, you can do an initial public offering that contemplates future stock issuance to meet future capital requirements without watering down the value of the stock. You do this by selling stock in units with warrants (options) to buy more stock at higher prices for exercising when the capital is required and the value of the company has risen. In practice, it is ridiculously difficult to price the warrants effectively. Too often you see the warrants in penny stocks that are manipulated by insiders. The warrants are never "in the money" because the stock never reaches the exercise price, so they are therefore worthless.

  • Daveainchina Daveainchina on Nov 05, 2012

    I'm very interested in this company and I certainly hope they make it. This vehicle is just so different from the other players in the market on that alone I hope it makes it. Time will tell but I wish them the best of luck.

  • Shaker Shaker on Nov 06, 2012

    Rumor has it that Musk (even at $1/year salary) is not as concerned with the work conditions in his company as he could be. Don't forget the workers :-) Edit: Removed an ill-considered tirade.

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