Our certificate of incorporation, bylaws and Delaware law contain provisions which could have the effect of rendering more difficult, delaying or preventing an acquisition deemed undesirable by our board of directors. See the section entitled Corporate Governance Board Meetings and Committees Compensation Committee. Buss has been a member of our Board of Directors since November 2009. Substantial increases in the prices for our raw materials or prices charged to us, such as those charged by our battery cell manufacturers, would increase our operating costs, and could reduce our margins if we cannot recoup the increased costs through increased electric vehicle prices. We may face regulatory limitations on our ability to sell vehicles directly or over the internet which could materially and adversely affect our ability to sell our electric vehicles. We expect that this production level will allow us to achieve our goal of 21,000 Model S deliveries worldwide in 2013 and thereby significantly increase automotive sales, as compared to 2012.
The mission statement of Tesla explains the central focus of the company which, as already mentioned in the first paragraph was to prove that electric cars could be better than the gasoline powered ones. If you are a beneficial owner of shares held in street name, it is critical that you provide voting instructions if you want it to count in the election of directors Proposal One. In addition, the Board has three standing committees Audit, Compensation, and Nominating and Corporate Governance, which are each further described below. More importantly, the cash flow before financing is beginning to run into the red with no end in sight. Risks Related to Our Business and Industry We may be unable to sustain our current level of production or deliveries of Model S, both of which could harm our business and prospects.
This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The vehicles run only on electric power and the company is implementing Autopilot features that allow the cars to parallel park and provide lane control without the need of much human guidance. All of our directors and executive officers during fiscal year 2012, other than Messrs. Jurvetson possesses specific attributes that qualify him to serve as a member of our Board of Directors, including his experience in the venture capital industry and his years of business and leadership experience. If the market for electric vehicles in the U. Our production costs for Model S have been high due to start-up costs at the Tesla Factory, manufacturing inefficiencies including low absorption of fixed manufacturing costs, higher logistics costs due to the immaturity of our supply chain, and higher initial prices for component parts during the initial period after the launch and ramp of Model S.
When high glucose is present in the urinalysis test the person has diabetes. The review of the Tesla Roadster included a number of significant falsehoods regarding the cars performance, range and safety. Accordingly, actual results could differ significantly from the estimates made by our management. The Compensation Committee oversees management of risks relating to the Companys compensation plans and programs. Demand for new cars in the automobile industry in general, typically decline over the winter season, while sales are generally higher during the spring and summer months. In addition, in the past, following periods of volatility in the overall market and the market price of a particular companys securities, securities class action litigation has often been instituted against these companies.
He is not present during Compensation Committee deliberations or votes on his compensation and also abstains from voting in sessions of the Board of Directors where the Board of Directors acts on the Compensation Committees recommendations regarding his compensation. The meeting will begin promptly at 3:00 p. In October 2010, we completed the development of the A-Class battery pack and charger and began shipping production components for a demonstration fleet in February 2011. These events have raised concerns about the batteries used in automotive applications. Notes to Condensed Consolidated Financial Statements Unaudited 1. This type of on and off intense annual revenue growth is very hard on the company balance sheet resources.
Moreover, any failure of a competitors electric vehicle, especially those that use a high volume of commodity cells similar to the Tesla Roadster or Model S, may cause indirect adverse publicity for us and our electric vehicles. Signature 2 Please keep signature within the box. We do not know whether our new store strategy will be successful, if consumers will be willing to purchase vehicles in this manner or if these locations will be deemed to comply with applicable zoning restrictions as well as approval and acceptance from the specific high profile retail centers in which we seek to locate our stores. Servicing electric vehicles is different than servicing vehicles with internal combustion engines and requires specialized skills, including high voltage training and servicing techniques. The revised policy provides for, among other things, an option grant award in addition to a cash retainer for service on each Board Committee and as the Chair of a Board Committee.
To the extent all of this equipment is purchased and would otherwise be subject to California state sales and use tax, we believe this incentive would result in tax savings by us through January 2015. The Nominating and Corporate Governance Committee is responsible for, among other things: assisting the Board of Directors in identifying prospective director nominees and recommending nominees for each annual meeting of stockholders to the Board of Directors; reviewing developments in corporate governance practices and developing and recommending governance principles applicable to the Board of Directors; 16 reviewing the succession planning for Teslas executive officers; overseeing the evaluation of Teslas Board of Directors and management; and recommending members for each Board committee to the Board of Directors. Musk and the Trust on the other hand, prohibit the non-pledged shares currently owned by Mr. As our vehicles are placed in more locations, we may encounter negative reactions from our consumers who are frustrated that they cannot use local service stations to the same extent as they have with their conventional automobiles and this frustration may result in negative publicity and reduced sales, thereby harming our business and prospects. As a result, consumers may be less likely to purchase our vehicles now if they are not convinced that our business will succeed or that our operations will continue for many years. The prices for these raw materials fluctuate depending on market conditions and global demand for these materials and could adversely affect our business and operating results.
As of August 31, 2012, we had fully drawn down the aforementioned facilities. In order to meet these expectations, we may in the future be required to introduce on a regular basis new vehicle models as well as enhanced versions of existing vehicle models. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on our results of operations, prospects, cash flows, financial position and brand. It intends to make the Model S available with three range variants — 160 miles, 230 miles, and 300 miles, on a single charge. Risks Related to the Ownership of our Common Stock Concentration of ownership among our existing executive officers, directors and their affiliates may prevent new investors from influencing significant corporate decisions.
Furthermore, we plan to start European deliveries of the Model S this summer and Asian deliveries later in 2013, but have limited experience delivering vehicles outside of the United States and thus may face difficulties meeting our delivery plans in both Europe and Asia. Developments in alternative technologies or improvements in the internal combustion engine may materially adversely affect the demand for our electric vehicles. Furthermore, even if these patent applications do result in issued patents, some foreign countries provide significantly less effective patent enforcement than in the United States. From May 2000 to September 2006, he served as Vice President, Real Estate for Apple Computer. The condensed consolidated results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future year or interim period. Elon Musk is a significant stockholder of SolarCity and has been its Chairman since July 2006. Kroeger served as Daimlers Vice President Quality Management Mercedes-Benz.
Any failure by us to develop new or enhanced technologies or processes, or to react to changes in existing technologies, could materially delay our development and introduction of new and enhanced electric vehicles, which could result in the loss of competitiveness of our vehicles, decreased revenue and a loss of market share to competitors. Yes ¨ No x As of April 30, 2013, there were 115,552,703 shares of the registrants Common Stock outstanding. This agreement further requires that we meet customary obligations such as timely deliveries, warranty and product quality obligations. We do not have, nor do we plan to establish, any program, plan, or practice to time stock option grants in coordination with releasing material non-public information. Musk was not serving as either Teslas Chief Executive Officer or Chairman of the Board of Directors for reasons other than his death or disability, and Dr. In December 2010, the plaintiffs settled claims for real property damage but retained their claims for emotional distress, bodily injury and personal property damage. In 2012, Cypress provided semiconductors to a third party manufacturer engaged by Tesla to build certain components for use in its Model S automobile.