Tesla Australia turns profit despite parent's loss

Tesla Motors’ Australian arm has confirmed it trebled its revenue in 2017 despite slow electric vehicle (EV) take-up and mounting losses for its US parent company.

Data originally published by the Australian Financial Review shows Tesla Motors Australia reported revenue of $160.7 million in 2017 — up from $52.6 million in 2016.

More importantly, Tesla Motors Australia’s profit rose from $220,000 to $1.36 million last year.

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

The report, based on official Tesla figures filed with the Australian Securities and Investment Commission (ASIC), offers a rare glimpse into the local Tesla operation, which steadfastly refuses to disclose official sales data.

It also flies in the face of significant financial woes for its US parent company, most recently a record $US785 million loss in the March quarter on the back of big operating expenses and R&D costs.

Speaking with motoring.com.au on Thursday, a Tesla Australia spokesman confirmed the ASIC data but declined to comment further. Tesla Motors Australia only has to sell and service its growing electric car range.

“There were articles last week [from publications] who managed to buy our ASIC report,” the spokesperson said. “The figures are out there, I’ll let you find them.”

Tesla’s ASIC report does not include revenue from the company’s much-touted power storage battery built for the South Australian government last year – deemed the world’s biggest.

According to the AFR, revenue from the 129mWh battery was not recognised until the first quarter of 2018, and drove a 38 per cent quarter-on-quarter increase in Tesla Inc’s energy generation and storage business to $US410 million.

The battery has also been tied to a $113.8 million leap in Australian costs related to “inventories of finished goods and work in progress”.

The spokesperson said more energy project talks were underway “with all Australian governments”.

“There’s been a couple of other battery projects that have been announced. There was a Tweet that went out from [Victorian Minister for Energy, Environment and Climate Change) Lily D’Ambrosio two nights ago – they’ve just had their power packs land on site,” said the spokesperson, referring to Tesla’s involvement in two new large-scale grid-connected batteries in Victoria.

Apart from cutting its workforce by nine per cent to reduce costs and improve profitability this week, Tesla said it would not renew its deal to supply solar and battery equipment to US retailer Home Depot in order to focus on its own stores and online sales.