We see you're using an obsolete browser. For a better experience when browsing The New Economy, and for a better web, please consider switching to a newer browser. For more information on popular browsers please see browsehappy.com.

Sign up to our newsletter below.

First name
Last name
Email
Company
Job Title
Industry

Close

Social network participation among Fortune 500 CEOs Positive trends point to a US embrace of solar power

Insights

The stratosphere is the new battleground for firms whose ambition it is to bring increased internet connectivity to the developing world

Google’s Project Loon explained

The stratosphere is the new battleground for firms whose ambition it is to bring increased internet connectivity to the developing world

Link to i40

Latest Reports

Link to healthcare microsite Link to renewables microsite Link to sustainability microsite Link to empowerment microsite

Tesla’s positive buzz

Though it revealed a net loss of $90m for Q4 2012 ñ approximately $0.79 per share ñ electric vehicle manufacturer Tesla maintained its predictions of a first quarterly profit in its Fourth Quarter & Full Year 2012 shareholder letter. Investor confidence has taken a significant dive, but Tesla saw revenues of $306m through Q4 (a 500 percent increase on Q3) and concluded the year with $221m in total cash
despite its losses.

Despite consistent improvements to its profitability margins, Tesla has yet to negate excruciatingly high research and sales expenses. Demonstrating a debt-to-equity ratio of 3.62, the carmaker is yet to repay $450m of long-term debts ñ let alone $1bn in overall liabilities.

It remains to be seen whether Tesla can overturn its negative free cash flow (which is now in excess of $500m) or its negative cash conversion cycle of 46 days, but the company sustains hopes of a profitable return (for the next quarter at least).