Tesla Motors Inc (NASDAQ:TSLA) Dilution for Shareholders as Company Desperate for Cash
Financial Strength
| Company | industry | sector | |
|---|---|---|---|
| Quick Ratio (MRQ) | 0.59 | 1.13 | 1.38 |
| Current Ratio (MRQ) | 1.10 | 1.35 | 1.76 |
| LT Debt to Equity (MRQ) | 286.29 | 41.24 | 39.20 |
| Total Debt to Equity (MRQ) | 375.44 | 75.01 | 67.82 |
| Interest Coverage (TTM) | -2.12 | 0.59 | 6.65 |
Profitability Ratios
| Company | industry | sector | ||
|---|---|---|---|---|
| Gross Margin (TTM) | 26.65 | 20.08 | 24.73 | |
| Gross Margin – 5 Yr. Avg. | 24.56 | 19.73 | 23.70 | |
| EBITD Margin (TTM) | -2.30 | — | — | |
| EBITD – 5 Yr. Avg | -10.87 | 13.26 | 14.33 | |
| Operating Margin (TTM) | -10.44 | 8.11 | 9.96 | |
| Operating Margin – 5 Yr. Avg. | -17.50 | 9.38 | 10.53 | |
| Pre-Tax Margin (TTM) | -13.69 | 11.97 | 12.91 | |
| Pre-Tax Margin – 5 Yr. Avg. | -19.51 | 13.20 | 13.51 | |
| Net Profit Margin (TTM) | -14.06 | 9.51 | 10.01 | |
| Net Profit Margin – 5 Yr. Avg. | -19.73 | 10.53 | 10.58 | |
Efficiency
| Company | industry | sector | ||
|---|---|---|---|---|
| Revenue/Employee (TTM) | 364,464 | 917,269,411 | 785,804,171 | |
| Net Income/Employee (TTM) | -51,249 | 95,067,128 | 89,892,794 | |
| Receivable Turnover (TTM) | 31.48 | 9.59 | 13.22 | |
| Inventory Turnover (TTM) | 3.00 | 8.66 | 11.65 | |
| Asset Turnover (TTM) | 0.64 | 0.79 | 0.79 | |
Management Effectiveness
| Company | industry | sector | ||
|---|---|---|---|---|
| Return on Assets (TTM) | -9.04 | 7.57 | 7.51 | |
| Return on Assets – 5 Yr. Avg. | -15.39 | 10.74 | 9.98 | |
| Return on Investment (TTM) | -13.77 | 12.95 | 12.22 | |
| Return on Investment – 5 Yr. Avg. | -23.24 | 18.23 | 16.59 | |
| Return on Equity (TTM) | -62.43 | 16.77 | 15.66 | |
| Return on Equity – 5 Yr. Avg. | -75.58 | 23.50 | 21.20 | |
Tesla is offering of 2.1 million shares, Tesla’s first equity sale in more than two years, and comes a week after the company reported a larger quarterly loss and said it may raise more cash to offset heavy spending.
Up to Wednesday’s close, Tesla’s shares had fallen 12 percent since Aug. 5 when it reported its results.
Tesla, which has been losing more than $4,000 on every Model S electric sedan it sells, had $1.15 billion in cash and equivalents as of June 30, down from $1.91 billion as of Dec. 31.
The company said in a filing that it assumed the shares would be priced at Wednesday’s closing price of $238.17. The stock is expected to be priced after the market closes.
Musk, who is buying about 84,000 shares in the offering, is already the company’s largest shareholder with a 22.25 percent stake as of Dec. 31, according to Reuters data. On that basis, the latest purchase will slightly reduce his holding.
But lets take a look at the Insider Selling
| Insider Transactions Reported – Last Two Years |
|---|
|
| Data provided by EDGAR Online |
Tesla had 127.1 million shares outstanding as of July 30.
The company has said its Model 3 vehicle, which will compete with BMW’s 3 Series sedans, will go on sale in 2017.
The offering’s underwriters have a 30-day option to buy up to $75 million of additional shares, Tesla said.
Goldman Sachs & Co and Morgan Stanley are lead joint book-running managers for the offering, while J.P. Morgan and Deutsche Bank Securities are additional book-running managers.
BofA Merrill Lynch and Wells Fargo Securities are co-managers.
Tesla Motors, Inc., incorporated on July 1, 2003, designs, develops, manufactures and sells electric vehicles, electric vehicle powertrain components and stationary energy storage systems. The Company also designs, develops, manufactures and sells electric vehicle powertrain components to other automotive manufacturers. The Company uses energy management technologies and manufacturing processes developed for its vehicle powertrain systems and develops stationary energy storage products for use in homes, commercial sites and utilities. It designs its battery packs. The Company’s technology includes cooling systems, safety systems, charge balancing systems, battery engineering for vibration and environmental durability, robotic manufacturing processes, customized motor design and the software and electronics management systems necessary to manage battery and vehicle performance. Its products include Model S and The Tesla Roadster.
In addition to the design, development and production of the powertrain, it has created in-house capabilities in the design and engineering of electric vehicles and electric vehicle components and systems. It designs and engineers bodies, chassis, interiors, heating and cooling and low voltage electrical systems in-house. The Company offers loans and leases in North America, Europe and Asia primarily through various financial institutions. It also offers leases directly through its captive finance company in 37 states, the District of Columbia and in four provinces of Canada. Certain of its loan programs provide customers with a resale value guarantee. In certain markets, it also offers buy back guarantees to financial institutions. The Company conducts its powertrain and vehicle manufacturing and assembly operations at its facilities in Fremont, California; Lathrop, California; and Tilburg, Netherlands. It provides service for its electric vehicles at its service centers. It owns and operates 95 service locations as of December 31, 2014.
Model S
The Company’s Model S is an electric, four-door, five-adult passenger sedan. The Company offers 60 kilowatt-hour and 85 kilowatt-hour battery pack versions of Model S in the United States. Its autopilot system includes collision warning systems, automatic braking and traffic aware cruise control. It also offers wireless connectivity, such as third generation (3G) connectivity and driver customization of the infotainment and climate control systems of the vehicle. Model S vehicles can also charge natively or through adapters.
The Tesla Roadster
The Company’s Tesla Roadster is an electric sports car. It caters to customers in over 30 countries in North America and Europe.
The Company competes with Audi, BMW, Lexus, Mercedes, Daimler, Nissan, Fiat, Mitsubishi, Porsche, Volkswagen, Volvo, General Motors, Toyota, Ford and Honda.
The post Tesla Motors Inc (NASDAQ:TSLA) Dilution for Shareholders as Company Desperate for Cash appeared first on Live Trading News.