Tesla's Q4 2014 Sees $108M Loss Despite Strong Demand For S, X

Cameron Aubernon
by Cameron Aubernon
tesla s q4 2014 sees 108m loss despite strong demand for s x

Tesla’s Q4 2014 didn’t go so well despite strong demand for its Model S, losing $108 million in earnings over the quarter.

The Wall Street Journal reports the automaker has 10,000 booked orders for the premium EV sedan, as well as 20,000 for the Model X crossover now expected to hit the showrooms in Q3 2015. However, the loss is attributed to both a lag between production and fulfillment of the Model S P85D, and a strong dollar.

Sales in Q4 2014 fared better than in Q4 2013, with 9,834 units sold over 6,892. The sales figure also bests Q3 2014’s results, when 7,785 vehicles left the showroom. Overall deliveries for the outgoing fiscal year amounted to 32,733 — short of the 33,000 Tesla hoped to move that year — with 55,000 global sales projected for the upcoming year.

Q4 2014 revenue jumped to $956.6 million over the previous year’s $615 million, while operating expenses almost doubled over the same period, hitting $336.5 million. Capital spending for the upcoming year is expected to hit $1.5 billion, divided between Gigafactory investments, production increases, readying the Model X for production, and sales and service. Cash supply dropped from $2.4 billion in Q3 2014 to $1.9 billion in Q4.

As for the stock price, Tesla shares closed at $212.80 Wednesday, having recovered from CEO Elon Musk’s comments in January about Chinese sales and when his company would become profitable; the stock price then fell to $177.22. That said, it’s still lower than the peak of $291.42 achieved last September.

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4 of 28 comments
  • Tstag Tstag on Feb 12, 2015

    The thing is premium cars makers like Mercedes are watching Tesla with interest. As soon at they determine that electric cars will sell in big enough volumes they will start making their own electric cars. BMW already do and JLR are said to be working on a stand alone all electric Range Rover model. When the big boys jump on board they will invest in new technologies e.g BMW and Carbon Fibre pressings. This week I read about a luxury Electric car which ran on some form of fuel rather than battery. Meaning it had a 900 mile range and could be filled up from a pump. All that money Tesla is putting into battery making will help them shot term but we are possibly only a few years away from more advance tech turning up which will make that investment obsolete! Then I suspect it's curtains for Tesla or GM will buy it ;-)

  • Shaker Shaker on Feb 12, 2015

    Maybe the "Gigafactory" is already being built to be adaptable to the next-generation of Tesla batteries - heck, maybe Elon already has the next gen batteries in the works. Tesla would hurt their own sales if they revealed that the G-Factory was going to produce better battery tech than the present models.

  • Jkk6 Jkk6 on Feb 12, 2015

    Soccer moms in Englewood Cliffs seem to drive em like normal cars... Oh wait it is a normal car. Time to buy.

  • Corey Lewis Corey Lewis on Feb 12, 2015

    There's usually a strong demand for S,X, unless you're married.