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Tesla Motors is a relatively new company in the auto industry, founded in 2003. They have been able to work their way into an industry that is known to be extremely competitive and difficult to break into because of the amount of competition in the industry. Tesla Motors has been able to get into the industry because they were able to revolutionize the electric car that was still thought to be very far out by larger auto makers. Today Tesla Motors has three models of cars that they are selling, they are also selling their batteries to other large car manufactures, including Toyota, for use in their electric cars. Unfortunately, due to the large cost of the barrier to entry into the auto industry, Tesla Motors have not been able to produce any profitable years so far in their first 10 years. With a fourth model set to release in the near future, many of the company building strategies that they have employed do seem to be paying off as they posted their first profitable quarter in the first quarter of 2013. If this trend continues, Tesla Motors could very well become a competitor to the current large automobile manufactures.
Tesla Motors has been able to remain steady in some aspects of the last two years but other statistics have changed dramatically, and usually not for the better. Their returns on assets stayed fairly constant for 2011 and 2012 but the return on their equity has dropped quite substantially. The gross profit margin percent also dropped from 30% in 2011 to less than 8% in 2012, it appears that the cost of the automobile sales sky rocketed during 2012 making up an astounding 96% of the total automobile sales. This is a completely instantiable trend that they will have to work on lowering in future years. In 2012, Tesla Motors was only retaining 1% of their total revenues before factoring in any operating expenses. When including Tesla Motor’s

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