Tesla Australia makes profit despite parent’s loss and poor electric car market

Tesla’s Australian subsidiary trebled its revenue in 2017 and contributed a profit to its parent, even as losses mounted at Elon Musk’s maker of electric vehicles and batteries, and a new report showed Australian sales of electric cars were among the lowest in the developed world.

As Tesla’s chief executive and chairman bemoaned “the most excruciating hellish several months we’ve ever had” as he survived a bid to oust him at the annual shareholding meeting in California, Tesla Motors Australia Pty Ltd reported $160.7 million revenue in calendar 2017, up from $52.6 million in 2016, and a sextupling of profit to $1.36 million from $220,000.

The company, whose immediate parent is Tesla’s Netherlands-based subsidiary, reported a $577,000 tax benefit for recoupment of prior year losses.

The accounts lodged with the regulator last month do not include revenue from the building of the world’s biggest battery for the South Australian government, although the 129 megawatt-hour facility north of Adelaide may explain a huge leap in costs related to “inventories of finished goods and work in progress”. These took $113.8 million off the Australian subsidiary’s taxable income in 2017, after the same line item contributed $148,000 in 2016.

Read on source article – Financial Review

7 Jun 2018