|Company Name:||Tesla Motors, Inc.|
|Event Title:||Q2 2013 Earnings Call Transcript|
|Event Time:||05:30 PM ET|
Good day, ladies and gentlemen, and welcome to the Tesla Motors Second Quarter 2013 Financial Earnings Results Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time.
I would like to turn the call over to your host, Jeff Evanson, Please go ahead.
Thank you, Patrick and good afternoon everyone. Welcome to our second quarter financial results Q&A webcast and conference call. I am joined today by Elon Musk, Tesla's Chairman and CEO, and Deepak Ahuja, Tesla's Chief Financial Officer.
We announced our financial results for the second quarter shortly after the close of trading today. The shareholder letter, financial results and webcast of this Q&A session are all available at our Investor Relations website at ir.teslamotors.com. Today's webcast is for your questions and I thank you for primarily using the webcast that help save us some money. So thank you.
We're going to conduct this Q&A session live. So please press *1 now if you would like to ask a question and we do plan to end this call in 45 minutes as always.
During the course of this discussion we may talk about our business outlook and make forward-looking statements. Such statements are predictions based on management's current expectations, actual events or results could differ materially due to a number of risks and uncertainties including those mentioned in our most recent 10-Q filed with the SEC.
Such forward-looking statements represent our views as of today and should not be relied upon after today. We also disclaim any obligation to update these forward-looking statements.
And so now Patrick could we please have the first question.
Q & A
Our first question comes from Patrick Archambault with Goldman Sachs. Your line is open.
Yeah, thank you very much guys. Congratulations on a good quarter. You know I think obviously the execution looked great. But my one question would be, just can you help us walk a little bit from I think your margin is adjusted 10% ex-ZEV credits. It sounds like you still have some levers to put to get to the 25. Can you just go through those with us?
Chief Financial Officer
I think, Patrick, Deepak here. Our automotive gross margin excluding ZEV credits is closer to 13% and maybe we can walk you that through later on to clarify. I know this is a confusing quarter with significant accounting numbers here. So we will just help you with that. But we see clearly a path that gets us to 25% excluding ZEV credits given the actions that are underway and have been underway for a while and these relate to on the cost reduction aspects with our part cost reduction roadmap, the efficiencies we have in our manufacturing, and supply chain that are happening over the second half as well as a combination of the new options that we have put in the marketplace and the margin enhancement we get from there.