Tesla designs, develops, manufactures and sells high-performance fully electric vehicles and advanced electric vehicle powertrain components. They have an established network of sales and service centres and supercharger stations globally thus creating a unique business model in the automobile industry.
Model S is a fully electric, four door, five adult passenger sedan that offers compelling range and performance with zero tailpipe emissions. Model S offers a range on a single charge of up to 265 miles. Model S vehicles have an effective base price range of USD 62,400 – USD 72,400.
The Tesla Roadster
The Tesla Roadster, is the first high-performance electric sports car. The two seat, Convertible Tesla Roadster has a combination of range, style, performance and energy efficiency. It can accelerate from zero to 60 miles per hour in as little as 3.7 seconds and has a maximum speed of approximately 120 miles per hour. The Tesla Roadster has a range of 245 miles on a single charge, as determined using the United States EPA’s combined two cycle city/highway test. Company has sold approximately 2,500 Tesla Roadsters to customers in over 30 countries, predominately in North America and Europe in fiscal 2013.
Model X seats seven adults and is available with 60 kWh and 85 kWh battery pack options, with pricing of each version similar to those of a comparably equipped Model S vehicles. Company intends to target an initial annual production rate of approximately 20,000 vehicles per year from its Factory. After its initial launch in the United States, Model X will be sold in all the markets where Model S is available including in Asia and Europe.
Company intends to develop a third generation electric vehicle referred to as “Gen III”, to be produced at the Tesla Factory. This vehicle will be produced in approximately 2-3 years.
The company has provided development services and full powertrain systems and components to Daimler for its electric vehicles.
Financials and Market scope
In fiscal 2014, Tesla had posted revenue growth of 58.84% to USD 3.19 billion. Net loss was 4 times more at USD 0.3 billion. Research and development cost doubled to USD 0.46 billion and long term debt ramped up 4 times to USD 2.4 billion.
In 2015, company is expected to deliver about 55,000 Model S and X vehicles, representing more than a 70% increase over 2014 deliveries. About 40% of these deliveries are planned for the first half of the year.
According to outlook given for 2015, capital spending and operating expenses would increase, but at a more moderate pace than 2014. Capital expenditures are expected to be about USD 1.5 billion on expansion in production capacity, complete Model X developmen and investment in the stores and service centres. Tesla plans to grow Supercharger network by over 50% this year as well as continue other product development programs, including Model 3.
Competition in the automotive industry is intense and evolving. Nissan Leaf, fully electric Ford Focus, fully electric Renault Fluence, Fiat 500e, Mitsubishi electric iMiEV are major competitors for Tesla in alternative fuel vehicle market. BMW, Daimler, Volkswagen and Volvo are also competing in electric vehicles market.
Tesla is listed on US stock markets and trades at a current price of USD 207.88. The company has a debt equity ratio of 2.48 as of fiscal 2014 and has a current market capitalization of USD 25.45 billion. The Market Capitalization to Sales ratio is 7.96.
Fiscal 2014 fourth quarter results
In Q4 ended on 31st December 2014, Company has posted net loss of USD 107.62 million that widened by 44.06% YoY. Total revenues stood at USD 0.956 billion rising by 55.4% against Q4 of fiscal 2013. Q4 financials reflect 1400 delivery shortfall, one-time manufacturing inefficiencies related to the introduction of P85D and Autopilot functionality, and the impact of the strong dollar. In Q4 Tesla produced 11,627 vehicles.