Question

Exhibit 12 Income Statement Tesla Motors (in US$ thousand) H1 2013 2012 2011 2010 Question 5 (1 point) Refer to Exhibit 12: Assume "cost of revenues" reflects the variable materials and labor costs of producing Tesla cars and powertrains (there are other costs in this number but let's assume otherwise). Let's also assume Tesla sells cars and powertrains as soon as they are produced and, therefore, has minimal inventory costs that are included in the cost of revenues" number. Finally, lets imagine a world where Tesla does not benefit from the sale of "Regulatory/ZEV credits". Calculate the contribution margin" for the sale of Tesla cars & powertrains for "H1 2013" using data in Exhibit 12. Revenues Car Sales & Powertrains Regulatory/ZEV credits 966,931 847,531 119,400 413,256 372,756 40,500 204,242 201,542 2,700 116,744 113,944 2,800 Cost of revenues 770,128 383,189 142,647 86,013 09.1% Gross profit 196,803 30,067 61,595 30,731 25.6% 0.005% Operating expenses R&D SG&A Total operating expenses Loss from operations 107,171 107,008 214,179 -17,376 273,978 150,372 424,350 -394,283 208,981 104, 102 313,083 -251,488 92,996 84,573 177,569 - 146,838 20.4% Net income (loss) 49 -396,213 -254,411 -154,328 Question 6 (1 point)

Answer 1

Answer

a) 9.1%

Calculations:

Revenues (A)	$ 847,531
Less: Cost of revenues (B)	$ 770,128
Contribution (C =A-B)	$     77,403
Contribution margin (D = C/A)	9.1%

In case of any doubt, please comment.