Whitefish, MT / July 7, 2014 / Saleen Automotive Inc. (OTC: SLNN), an American specialty manufacturer of high performance vehicles, technical performance parts, and lifestyle accessories, recently reported FY 2013 revenue that increased 96% to $5,279,887 and gross profit from vehicles and parts that increased 563% to $748,378, signaling an ongoing turnaround in its financial performance.
At the same time, the company announced the release of the Saleen Tesla S, began selling its performance vehicles in China, signed an agreement with BASF (OTC: BASFY) to utilize its state-of-the-art color technology, and appointed legendary Top Fuel driver Joe Amato to its Board of Directors. These efforts set the stage for significant growth over the coming year by increasing revenue opportunities.
The importance of these milestones is underscored by Tesla Motors Inc.'s (NASDAQ: TSLA) recent announcement that it expects to deliver about 7,500 Model S vehicles in Q2 as it moves towards its goal of more than 35,000 Model S deliveries in 2014. After beginning with just 53 deliveries to China in April, the company quickly ramped up to an estimated 1,200 deliveries during the second quarter.
The Saleen Tesla S could capture a portion of the growing market given its unique design and performance characteristics. Since many Tesla buyers are already high-end buyers, the Saleen version of the iconic electric vehicle could accelerate sales as the market takes notice. The impact of these sales could become increasingly apparent over the coming quarters as they are reflected in the financial statements.
China's car-buying market has been on the rise over the past few years, as an increasing number of Chinese citizens join the middle class. According to McKinsey & Company, the country's car market will grow ten-fold between 2005 and 2030, yielding the world's largest car market by a wide margin, while the number of registered cars is expected to reach 200 million by 2020.
Figure 2 – Chinese Car Sales – Source: Wall Street Journal
Saleen Automotive's distribution agreement with GreenTech Automotive to distribute its full line-up of vehicles within China could prove to be an exceptional move by management. Beginning in Spring 2014, the company's high-performance vehicles were put up for sale within the country, which means that shareholders could begin seeing the fruits of those labors in FY 2014 and beyond.
Saleen Automotive plans to continue its aggressive release schedule with the introduction of the 2015 Saleen 302 Mustang. With this year being the 50th anniversary of the iconic Ford (NYSE: F) Mustang's release, enthusiasts have been provided this week with a first look at the all-new Saleen Mustang model, which is the first major Mustang redesign since 2005. Management plans to unveil additional details and specifications as production draws closer.
Figure 3 – 2015 Saleen Mustang – Source: Saleen Automotive Inc.
"With this model being the first major Mustang redesign since 2005, we took this as an opportunity to push the limits in both design and performance," said the company when releasing the photo. "We feel this latest Saleen Mustang model is perfectly positioned as the next American exotic, campaigning on the world stage."
Recently, USA Today published a story covering the photo release calling Steve Saleen "one of the best in the business" and outlining some of the changes that could be expected in the new Mustang model.
- Company Website
- Recent SEC Filings
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