Tesla Loses $49.8 Million In Q1 2014, Panasonic On Board With Gigafactory
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.
More by Derek Kreindler
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jdash1972, you may be surprised to know that contrary to what you say about"Tesla stuck selling electric cars in a world without many chargers" there are in fact a great many chargers in place right now and the way Tesla are rapidly doing things there will be many more to come. At this time it is possible to drive a Tesla from L.A. to New York with adequate chargers available, also from L.A. to Vancouver, B.C.
Companies with a complete product line can afford to have EVs as loss leaders. Tesla can't.
Am I missing the point of this article? Isn't reporting financial results in non-GAAP format a HUGE deal with the SEC? Or can Tesla just put an asterisk at the bottom of the spreadsheet stating "Oh, by the way, we do our figuring different from every other company, because, well, we're special, and everybody loves us"? Musk is a savvy guy. I suspect he has an exit strategy where within the next 3-5 years, he will be acquired by a Fortune 500 company. If not, Tesla will ultimately implode financially, as the market moves on to the next Cinderella Story.
I neither want Tesla to succeed nor fail. I like the idea of electric cars and sophisticated and improving battery technology. I just don't think electric cars make a whole lot of sense with the world the way it is. I agree it's a niche vehicle. And I believe it's an extravagant expenditure that will be dumped by the owner when the paint no longer shines or the fashion changes. This company makes exactly one product, and it's trendy at the moment, but that will change. Lithium ion batteries last about 10 years, give or take, if you take care of them. Hopefully the price (not the cost) of those batteries will drop, but the drop will have to be significant and that hasn't happened yet. After 100k miles and 10 years, I wouldn't want to be holding the bag, and which one of you would? This car is likely to find itself in a scrap yard long before it's time and that is neither efficient, economical or "green".