- Nov 10, 2010
Tesla reports increased revenue, but loses money on Model S development
Tesla Motors is happy with its third quarter results, which boast a 10 percent increase in revenue from last quarter's $28.4 million to $31.2 million, an improved gross margin of 30 percent from 22 percent previously, and a net loss of $34.9 million compared to its second quarter figure of $38.5 million. While an improvement from just a quarter ago, the large net losses this year stem mostly from development costs associated with the upcoming Model S sedan, which is planned for launch in 2012. R&D costs alone shot up from just $1.3 million in last year's Q3 to $26.7 million this year. According to CEO Elon Musk:
The Palo Alto, California-based electric carmaker continues to work hard in the fourth quarter. October was a busy month that included the company's purchase of the old NUMMI manufacturing plant in Fremont, CA and the signing of a $60 million development deal with Toyota for the electric version of the RAV4. In November, Panasonic invested $30 million in Tesla stock. With the company's strategic partnership with Daimler to develop next-generation battery packs on track, the planned launch of the more affordable Model S in 2012, and the continued growth of incentives being offered by countries around the world for the purchase of electric vehicles, Tesla may just yet prove its doubters wrong.We are very pleased to report steady top-line growth and significant growth in gross margin, driven by the continued improvement in Roadster orders and our growing powertrain business. Roadster orders in this quarter hit a new high since the third quarter of 2008, having increased over 15 percent from last quarter. While some of this is due to seasonal effects associated with selling a convertible during the summer months, we are pleased with the global expansion of the Roadster business and the continued validation of Tesla's technology leadership position evidenced by our new and expanding strategic relationships.