Tesla Announces May 4 For Earnings Report

Tesla stock, Model X, earnings call

Both the analysts and the investors will likely question the CEO about the quality issues in the early birds Tesla Model X

Tesla Motors has announced on Wednesday that the company will be reporting its first quarter earnings on May 4. The report is likely to be disclosed in the New York City after the markets closed on that day. It is expected that the report will give detailed view of the company’s progress on its Model X SUV.

The company’s cash-flow position would have slightly been helped by the deposit of $1,000 per vehicle which the company received on its highly anticipated Model 3 sedan. The auto-tech giant had roughly garnered close to 400,000 pre orders. However, the luxury electric car makers have to raise more capital and this is what the analysts and the investors will be hoping to hear from CEO Elon Musk to know the company’s strategies to raise the capital.

The Chief Executive is expected to be asked about the quality issues faced by several “early birds” Tesla Model X. On Tuesday, Consumer Reports cited that several customers reported that the vehicle’s “falcon wings” sensors were not working properly. The company responded to the complaints saying that it has acknowledged the issues in the vehicle and it will be responding to each owner distinctly and will go at lengths to satisfy the customers.

Reportedly, earlier this month, the luxury electric car maker had recalled 2,700 Model X manufactured before March 26 due to faulty third-row seats. The automaker carried out a strength test which pointed out few defects in the vehicle. The auto-tech giant has also advised the customers to avoid using the specific seat when the car is in use.

Additionally, earlier this month only, the $34 billion organization revealed that, during the first quarter, it has delivered close to 15,000 cars. Also, Tesla’s Model S sedan sales increase by 45% in comparison with last year’s same quarter.

For the current year, the company has to meet a target of delivering around 80,000 vehicles. In order to achieve that Tesla has to deliver an average of around 21,700 vehicles each quarter throughout the year. Therefore, it is likely expected that Mr. Musk will be questioned about the company’s strategies of meeting deadlines.

Musk had earlier reported that Model X’s features couldn’t be easily engineered therefore the company had to put heavy reliance on the parts suppliers. Moreover, according to the CEO, the “parts shortage” is one of the reasons for the delayed production of the Model X.

According to the analysts poll carried out by Thomson Reuters the Silicon Valley luxury electric car maker is likely to report a loss of $0.86 for the first quarter which ends on March 31 –last year, the company reported a loss of $1.22 in the same period. After making the adjustments for Tesla’s non-GAAP accounting, the quarterly losses are likely to be increased to $0.61 from a year-ago same period’s loss of $0.36.

In comparison with the last year’s revenue of $1.10 billion, the current year’s first quarter revenue is expected to be around $1.61 billion.

The investors are not much concerned about the company’s losses as it has been spending recklessly on the operational growth however what the analysts and the investors will be closely watching is the revenue of the company to determine the achievement of the sales targets. Furthermore, the analysts are also at the watch for the California carbon emission credits disbursed by other car manufacturers.

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