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).