ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT > Financial Management

Financial Analysis of Tesla Motors

Financial Analysis of Tesla Motors

Discuss Financial Analysis of Tesla Motors within the Financial Management forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Tesla Motors Inc. is a Silicon Valley-based company that designs, manufactures and sells electric vehicles (EVs) and electric vehicle powertrain ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
Financial Analysis of Tesla Motors
Old
 (1 (permalink))
Netra Shetty
netrashetty is on a distinguished road
 
netrashetty
Student of PGDM at Mats Institute of Management and Entrepreneurship
Bangalore, Karnataka
Management Paradise Guru
 
Status: Offline
Posts: 4,857
Join Date: Dec 2010
Location: Bangalore, Karnataka
Financial Analysis of Tesla Motors - February 15th, 2011

Tesla Motors Inc. is a Silicon Valley-based company that designs, manufactures and sells electric vehicles (EVs) and electric vehicle powertrain components. It is currently the only automaker building and selling a zero-emission sports car in serial production (as opposed to prototype or evaluation series production).[3] Tesla is also deep into the engineering and production development of a zero-emission premium sedan, the Model S, which will be built in Fremont, California.[4] Tesla also sells its electric powertrain components to other automakers, including Daimler and Toyota.[5]

Tesla Motors (TSLA) (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles. Its first product, Tesla Roadster, is the first federally compliant electric vehicle that can travel on on the highway. The company has intellectual property in its electric powertrain technology. The company has a distribution network of 12 stores in North America and Europe. The company plans to release the Model S later on in the year. [1]

Electric automobile industry is an attractive industry. With the success of the hybrid vehicles, consumer tastes are changing. Furthermore, with government intervention, Tesla was able to receive a $465.0 million long-term loan under the United States Department of Energy’s Advanced Technology Vehicles Manufacturing Incentive Program. According to Frost & Sullivan, a business research and consulting firm, the market for electric-based vehicles, which include hybrids and plug-in hybrid cars, is expected to grow from 1.75 million, 3% of new cars sold, in 2008 to 10.6 million worldwide, 14% of new cars sold, by 2015. [1]

The company's initial public offering of stock filed on the NASDAQ and went public on 29 June 2010. It was priced at $17, above the initial price range of $14-$16. The major shareholders include VantagePoint Venture Partners, Bay Area Equity Fund, and others. Toyota also made a $50 million private placement. [2] [1]

For FY2009 with year ended 31 December 2009, the company reported total revenues of $111.94 million, a large increase from $14.74 million in total revenue for FY2008. Furthermore, the company had a net loss of $55.74 million for FY2009, an increase from $82.78 million in net loss for FY2008. [1]


Talbots (NYSE: TLB) is a high-end clothing company with stores in the U.S., Canada, and the UK. In early 2008, Talbots closed its men's and children's operations, in order to focus on high-income women over the age of 35, in particular the 40 million baby boomers who are nearing retirement.[1] Talbots merchandising strategy focuses on honoring the classics which emphasizes modern classic, relevant, and updated merchandise designed to appeal to baby-boomer and generation-X consumers, and they define their brand image as “Tradition transformed”.[2]

The worsening state of the U.S. economy, however, has caused the company trouble. Two of Talbot's lenders decided to not renew $265 million in credit to to the company, limiting its ability to borrow money and pay for inventory and possibly setting it up for the bankruptcy. Talbots competes with other luxury retailers like AnnTaylor Stores (ANN), Chico's FAS (CHS), and Limited Brands (LTD).

For 2010 (Talbots fiscal year ends January 30 of each year), Talbots had total revenues of $1.24 billion.

Company Overview

Talbots decided to close its men's and children's businesses in January 2008, and has also closed twenty underperforming stores in order to better focus on its aforementioned core demographic.[3] Net income has been below expectations for the past five years, even becoming negative in 2007. The company's lackluster performance is attributed mainly to decreased consumer spending in response to an unstable economy, as well as tough competition with more attractive product offerings.

Contents
1 Company Overview
1.1 Business Financials
1.2 Business Segments
1.2.1 Retail Stores (83% of 2009 Revenues)
1.2.2 Direct Marketing (17% of 2009 Revenues)
2 Key Trends and Forces
2.1 Worsening of U.S. Economy Will Further Curb Consumer Spending
2.2 Aging Baby Boomer Population Increases Talbots' Target Demographic
3 Competition
4 References
Despite the discontinuation of its men's and children's lines, Talbots has increased its number of stores for the past five years. The firm is currently improving its image among this demographic by further developing its apparel; focusing on exclusive colors and fabrics, as well as fashion-forward design.

Business Financials
Talbots improved its financial position between 2009 and 2010. For the year ended January 30, 2010, Talbots posted total revenues of $1.24 billion, a slight decline from its previous year's revenues of $1.50 billion.[4] However, despite the lower revenues, Talbots was able to decrease its operating loss from $98.4 million in 2009 to just $8.7 million in 2010. Partially as a result of this, Talbots had its net loss decline from $556 million in 2009 to just $29 million in 2010.[4]

Business Segments
Talbots breaks its operations into two business segments: i) Retail Stores and ii) Direct Marketing.

Retail Stores (83% of 2009 Revenues)
Talbots has 580 retail stores in 46 states, the District of Columbia, as well as Canada. In 2010, retail stores represented 83% of total revenues for Talbots.[2]

Direct Marketing (17% of 2009 Revenues)
The direct marketing segment includes Talbots catalog and Internet channels. This segment had 17% of Talbots total sales, and 70% of these came directly through internet sales.[5]

Key Trends and Forces

Worsening of U.S. Economy Will Further Curb Consumer Spending
Before the state of the economy became so uneasy, middle-class consumers were more confident, with more money and more access to credit, meaning they were more likely to purchase luxury goods. With the onset of a recession though, those same middle-class consumers have been holding back and buying less from luxury retailers, leading to the overall decrease in revenues. The quarterly increase, however, is due to Talbots' more affluent customers being relatively unfazed by recessionary fears, coupled with the company's decision to hold monthly sales instead of quarterly sales.[6]

Aging Baby Boomer Population Increases Talbots' Target Demographic
There are over 78.2 million baby boomers in the United States, of which about 40 million were women. With ages varying from 44 to 62, these women are part of Talbots' key demographic.[7] As baby boomer women move into the upper echelons of the professional world, and then retire, they will have more money to spend on luxury items, so Talbots is revamping its products and its image in order to best capitalize on this target demographic.


Competition

AnnTaylor Stores (ANN) is a clothing retailer with stores throughout the entire United States and Puerto Rico. Its principal store, Ann Taylor, provides professional clothing, while Ann Taylor Loft provides casual clothing, both geared towards professional women.

Limited Brands (LTD) owns a number of well-known brands, namely Victoria's Secret and Bath & Body Works. Victoria's Secret is a lingerie retailer, while Bath & Body Works focusees on beauty products.

Nordstrom (JWN) is an "affordable luxury" retailer that sells clothing, shoes, and accessories to individuals of both genders. It's target demographic is individuals between the ages of 25 and 54 who generate an income in excess of $100,000 per year.

Chico's FAS (CHS) sells casual clothing to middle-aged women with moderate to high income. It also owns Soma, a lingerie store, and WH|BM, a brand that targets a younger demographic.
Advertisements
Friends: (0)
Reply With Quote
Related to Financial Analysis of Tesla Motors
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
SWOT ANALYSIS ON Tesla Motors Inc Abhijeet S Principles of Management ( P.O.M) 1 August 19th, 2014 08:18 PM
Organisational Structure of Tesla Motors Netra Shetty Human Resources Management (H.R) 0 February 5th, 2011 04:06 PM
Human Resource Management of Tesla Motors Abhijeet S Human Resources Management (H.R) 0 January 28th, 2011 01:25 PM
Customer Relationship Management of Tesla Motors Netra Shetty Marketing Management 0 January 20th, 2011 10:15 AM
Marketing Mix of Tesla Motors Inc. Abhijeet S Marketing Management 0 December 6th, 2010 03:13 PM
 

Reply

Bookmarks

Tags
accounting analysis, annual statement, balance sheet, business finance, business valuation, debt instruments, finance companies, financial analysis, financial analysis report, financial analysts, financial ratio, financial statement, fundamental analysis, funds management, hedge funds, income statement, mutual funds, net income, p&l account, personal finance, private equity, public finance, return on equity, tesla motors, us company finance

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


» Login
Forgot Password?  New User?
  

» Ads





» Recent Threads

SV TCL & Associates...
Last post by Scott Marinelli
42 Minutes Ago 02:59 PM
0 Replies
Hard work or Smart work... ( 1 2)
Last post by Satya Sarada
2 Hours Ago 01:22 PM
15 Replies
SV TCL & Associates...
Last post by Eddard Green
10 Hours Ago 05:40 AM
0 Replies
notes on Brand Management ( 1 2 3... Last Page)
Last post by Mahi Menon
1 Day Ago 10:43 AM
33 Replies
Solution Manual on Cost... ( 1 2)
Last post by Jorge Espada
1 Day Ago 09:39 AM
18 Replies
Mutual Fund Project ( 1 2)
Last post by Palak Agarwal
1 Day Ago 09:09 PM
13 Replies
INTRODUCTION OF...
Last post by Palak Agarwal
1 Day Ago 09:06 PM
2 Replies
Epic Research Update :...
Last post by Epic Research
1 Day Ago 04:24 PM
1 Replies
Epic Research Update :...
Last post by Epic Research
1 Day Ago 04:20 PM
1 Replies
Can facebook can be used... ( 1 2 3)
Last post by Kiky Idforq
2 Days Ago 03:20 PM
29 Replies
Indians Perform Better...
Last post by Kiky Idforq
2 Days Ago 03:18 PM
3 Replies
Should tobacco companies...
Last post by Kiky Idforq
2 Days Ago 03:15 PM
4 Replies
Are english skills...
Last post by Kiky Idforq
2 Days Ago 03:14 PM
7 Replies
Wisdom does not come...
Last post by Kiky Idforq
2 Days Ago 03:12 PM
3 Replies
Download more than 300...
Last post by Abhaya Panda
2 Days Ago 01:30 PM
3 Replies

» Projects Helpline

Solution manual on...
Last post by Andrew Ken
2 Days Ago 06:35 AM
Stock Marketing TYBMS...
Last post by Rajat Audichya
6 Days Ago 05:42 PM
CRM- Hotel Industry
Last post by Matt Martin
1 Week Ago 10:32 PM
advertising in telecom...
by kpis_02
Last post by Mohit Utmani
1 Week Ago 10:45 AM
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in