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Tesla Motors Reports First Quarter 2011 Results

Non-GAAP Financial Information

Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. On a non-GAAP basis, financial measures exclude non-cash items such as stock-based compensation as well as the change in fair value related to Tesla’s warrant liability. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Tesla’s historical performance as well as comparisons to the operating results of other companies. In addition, Tesla believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla's operating performance. A reconciliation between GAAP and non-GAAP financial information is provided below.

For additional information, please visit ir.teslamotors.com.

 
Tesla Motors, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
 
  Three Months Ended

Mar 31, 2011

 

Dec 31, 2010

 

Mar 31, 2010

Revenues    
Automotive sales $ 33,628 $ 29,172 $ 20,585
Development services   15,402       7,114       227  
Total revenues   49,030       36,286       20,812  
 
Cost of revenues
Automotive sales 26,961 23,401 16,858
Development services   4,041       1,564       102  
Total cost of revenues (1)   31,002       24,965       16,960  
Gross profit 18,028 11,321 3,852
Operating expenses
Research and development (1) 41,162 37,617 13,265
Selling, general and administrative (1)   24,212       25,349       16,585  
Total operating expenses   65,374       62,966       29,850  
Loss from operations (47,346 ) (51,645 ) (25,998 )
Interest income 40 63 48
Interest expense - - (230 )
Other income (expense), net   (1,485 )     187       (3,221 )
Loss before income taxes (48,791 ) (51,395 ) (29,401 )
Provision for (benefit from) income taxes   150       (37 )     118  
Net loss $ (48,941 )   $ (51,358 )   $ (29,519 )
Net loss per common share, basic and diluted (2) $ (0.51 )   $ (0.54 )   $ (4.04 )
Shares used in per share calculation, basic and diluted (2)   95,187       94,240       7,302  
 
Notes:
(1) Includes stock-based compensation expense of the following for the periods presented:
 
Cost of revenues $ 154 $ 93 $ 42
Research and development 2,299 2,051 281
Selling, general and administrative   3,473       5,699       3,064  
Total stock-based compensation expense $ 5,926     $ 7,843     $ 3,387  
 
(2) On July 2, 2010, the Company completed its initial public offering (IPO), pursuant to which the Company sold 11,880,600 shares of common stock. Concurrent with the closing of the IPO, the Company issued 2,941,176 shares of common stock to Toyota Motor Corporation in a private placement.
 
Upon the completion of the IPO, all convertible preferred stock automatically converted into 70,226,844 shares of common stock. Additionally, 445,047 shares of common stock were issued upon the net exercise of all outstanding warrants, excluding the Department of Energy warrant, which would otherwise have expired upon the completion of the IPO.
 
Tesla Motors, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
 
  March 31,   December 31,
2011   2010
Assets
Cash and cash equivalents $ 100,655 $ 99,558
Restricted cash - current 42,943 73,597
Accounts receivable 20,260 6,710
Inventory 50,823 45,182
Prepaid expenses and other current assets 12,225 10,839
Operating lease vehicles, net 9,141 7,963
Property and equipment, net 143,372 114,636
Restricted cash - noncurrent 4,934 4,867
Other assets   22,936     22,730
Total assets $ 407,289   $ 386,082
 
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities $ 69,469 $ 49,896
Deferred revenue and development compensation 6,909 7,418
Reservation payments 39,412 30,755
Common stock warrant liability 7,509 6,088
Capital lease obligations 696 775
Long-term debt 102,484 71,828
Other long-term liabilities   13,072     12,274
Total liabilities 239,551 179,034
Stockholders' equity   167,738     207,048
Total liabilities and stockholders' equity $ 407,289   $ 386,082
 
Tesla Motors, Inc.
Supplemental Consolidated Financial Information
(Unaudited)
(In thousands)
 
  Three Months Ended

Mar 31, 2011

 

Dec 31, 2010

 

Mar 31, 2010

Selected Cash Flow Information    
Cash flows used in operating activities $ 43,297 $ 34,284 $ 27,329
Cash flows provided by (used in) investing activities 10,111 (8,550 ) (9,379 )
Cash flows provided by financing activities 34,283 45,829 28,627
 
Other Selected Financial Information
Capital expenditures $ 20,476 $ 17,148 $ 8,473
Capital expenditures related to acquisition of Fremont facility and assets   -     6,500       -  
Total capital expenditures $ 20,476   $ 23,648     $ 8,473  
 
Depreciation and amortization $ 3,517 $ 2,890 $ 2,141

 

Mar 31, 2011

 

Dec 31, 2010

Cash
Cash and cash equivalents $ 100,655 $ 99,558
Restricted cash - current 42,943 73,597
Restricted cash - noncurrent 4,934 4,867
 
Tesla Motors, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited)
(In thousands, except per share data)
 
  Three Months Ended

Mar 31, 2011

 

Dec 31, 2010

 

Mar 31, 2010

 
Research and development expenses (GAAP) $ 41,162 $ 37,617 $ 13,265
Stock-based compensation expense   (2,299 )   (2,051 )   (281 )
Research and development expenses (Non-GAAP) $ 38,863   $ 35,566   $ 12,984  
 
Selling, general and administrative expenses (GAAP) $ 24,212 $ 25,349 $ 16,585
Stock-based compensation expense   (3,473 )   (5,699 )   (3,064 )
Selling, general and administrative expenses (Non-GAAP) $ 20,739   $ 19,650   $ 13,521  
 
Net loss (GAAP) $ (48,941 ) $ (51,358 ) $ (29,519 )
Stock-based compensation expense 5,926 7,843 3,387
Change in fair value of warrant liabilities   1,421     (587 )   2,332  
Net loss (Non-GAAP) $ (41,594 ) $ (44,102 ) $ (23,800 )
 
Net loss per common share, basic and diluted (GAAP) $ (0.51 ) $ (0.54 ) $ (4.04 )
Stock-based compensation expense 0.06 0.08 0.46
Change in fair value of warrant liabilities   0.01     (0.01 )   0.32  
Net loss per common share, basic and diluted (Non-GAAP) $ (0.44 ) $ (0.47 ) $ (3.26 )
 
 
Shares used in per share calculation, basic and diluted (GAAP and Non-GAAP)   95,187     94,240     7,302  

 

Non-GAAP Financial Information

Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. On a non-GAAP basis, financial measures exclude non-cash items such as stock-based compensation as well as the change in fair value related to Tesla’s warrant liability. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Tesla’s historical performance as well as comparisons to the operating results of other companies. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla's operating performance. A reconciliation between GAAP and non-GAAP financial information is provided above.

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