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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Tesla Motor’s Model 3 Hits the 325,000 Pre-order Mark

Tesla Motors Inc., Tesla's Model 3, Model S, Model X, electric vehicle, mass market electric cars, Tesla's production, auto-maker, automobile business

As Tesla’s cheap EV enters the market, the auto-maker has promised to revamp its production process so that it doesn’t come across a production lagging issues like before.

Elon Musk, the chief executive officer of Tesla Motors was quick to share the overwhelming response that the auto-maker received after the launch of its mass market electric vehicle Model 3. According to the latest data provided by the CEO of the auto-maker, the number of pre-order registrations, as of Thursday stands at 325,000. He mentioned while sharing the figures that over $14 billion of these registrations will turn into potential sales of the latest model.

The customers who have registered for the mass market car have an option to cancel their orders and receive their $1000 deposit fee back by the auto-maker. Other rules that have been set by the company on pre-ordering a vehicle include that the registrants can only order a maximum of two cars at one time. Furthermore, in a twitter post, the CEO mentioned that 5% of the registrants have signed up for two cars which mean that with the latest launch the automobile company has encouraged customers to purchase their cars.

In addition to that, when the pre-order figure hit its 325,000, Mr. Musk stated that this has been the single biggest one-week launch of any of the company’s products ever. Presently, the price tag on Tesla’s Model 3 is $35,000 however the price is expected to increase in case the company decides to introduce additional features to vehicle. Moreover, the CEO has initially at the time of the launch announced that this was just the first part of the launch and that there is going to be a second one

The official launch of the vehicle will be by the end of 2017, as Elon Musk announced during its launch event, and throughout this time span the company will periodically introduce new and additional features to the car. In a post Tesla suggested that the price along with all the features that will be later added to the car might go up to $42,000.

With the addition of these new features, the Model 3 will come closer to the muscle power and comfort level of its competitors which include BMW 3 Series, Mercedes Benz C-Class, Jaguar XE and Audi A4. It plans to make the electric vehicle quite standardized to match the comfort level of its competitor’s cars. Presently, the direct competition of Model 3 costs much cheaper in comparison to larger SUVs because of which customers are preferring to buy these standard vehicles at an affordable price since they also provide good enough muscle power.

Model 3 has a price advantage over its competitors presently; plus it will also be competing with other small sedans as well. However currently, both Benz C-Class and BMW 3 Series are priced below the $42,183 mark while Model 3 after federal tax incentives etc. will have a lower price than its competitors due to which it will have an edge in the market and have a larger target audience. Additionally, the car can speed from 0 to 60 miles per hour in less than six seconds which is unheard of for an electric car especially one that is priced at $35,000.

 

Tesla Might Achieve Its Target

Tesla Might Achieve Its Target

Tesla might pave its way back to redemption as portrayed by Credit Suisse

Tesla Motors Inc. has become the prime focus of analysts and investors due to the issues faced by the company. The issues are of diversified nature like the Model X production, full year guidance, not being able to deliver 500,000 cars by the fiscal year of 2020. Moreover, analysts at The Street are also okay with forgiving the car maker for extreme losses and cash burns however, they really want the company to abide by its promise.

Skeptics are raising concerns about the electric car giants inability to be able to achieve the “the low-end of the guidance full-year delivery guidance” but Dan Galves, the analyst at Credit Suisse is extremely confident on the subject since he holds the view that Tesla has the potential to achieve the impossible. The company has been granted a price target of $325 by Galves with an Outperform rating on Tesla stock.

As per the analyst, the chief executive officer of the company, Mr. Elon Musk has the ability to deal with the issues in a “positive manner” by the start of 2016 when the company unveils its delivery numbers for the fourth quarter fiscal year 2015. So if this is done, the market can streamline the company’s focus on the long term issues.

Apart from that, the company is expecting a 1000 incremental sales in the German market due to the tax rate by the start of 2016. This is likely to increase the prices of the Tesla cars by almost 20%, 40%, 60% and 80% gradually over the years to come. Moreover another 1000 incremental sales might happen in the United Kingdom since there was a backlog of the car orders for almost 11 months before the company rolled out the right hand drive “D”

The reservation orders for the Model X are being approached again by the company for deliveries as portrayed by Mr. Galves. Apart from that the company has also unveiled the entire specs along with the pricing of the company’s SUV which clearly indicates the increase in production is expected.

The report by Credit Suisse clears a lot of doubts regarding the production of Model X along with the full year target. The company has clarified over the passage of time that they are striving to improve its production levels that is likely to bolster the operational expenses. There is still hope for TSLA to fight back and redeem itself in the automotive industry as portrayed by Credit Suisse.

 

Can Tesla Really Manage Record Sales in Fourth Quarter

Can Tesla Really Manage Record Sales in Fourth Quarter

The auto making giant is expected to make record sales of around 17,000-19,000 cars by the end of the Q4

Tesla Motors seems to be working on the top most lines in the auto industry, which have been confirmed further in the guidance report that was given by him to the shareholders and investors in the meeting held to announce the earnings for the quarter, which were welcomed by the market very warmly. Not only were the earnings very strong, they also showed that the giant has been meeting all its targets very comfortably in the market, which was actually deemed as an impossible task by the majority of the analysts who were analyzing the future of the giant.

Furthermore, the reason why the investor sentiment has been improved by a massive difference is because the automotive giant has been working very hard in a lot of different ways to revamp production of its new car and to increase the sales of Model S and Model X as well, which will add to the massive figure of sales which the giant is predicting to make in the next quarter.

According to the press release which was followed by the earnings call, the smart car makers informed the market that the number of electric vehicles they are expecting to sell by the end of the Q4 is to come around 17,000 to 19,000. Now these figures are not being believed by many of the analysts in the stock market as analysts believe that the slow production of Model X and the number of problems that have been faced by the auto company are a little bit too much to handle and might take their toll by slowing down the progress of sales in the future. However, there still are some analysts who are seen to be thinking differently.

According to the records available, it will be seen that Tesla has always made the correct guidance for all of its quarters, keeping in consideration the past ten fiscal periods which met all the sales figures just how the company though it would. Keeping this in mind, analysts are of the opinion that if the hybrid car makers are giving out such huge figures to consider, then there is sure something big to look forward to.

On the other hand, if the auto giant turns out to hit the sales predictions, then it is very likely that it will end up meeting its incredibly massive full year guidance figure of 50,000-55,000 electric cars to be sold by the end of 2015. For Tesla stock to keep its production pace in a better shape, analysts are also talking about how the giant needs to speed up Model X manufacturing so that all the estimations and guidance presented to the investors and shareholders can be met by the giant without much hassle.

 

Tesla Cant Keep Pace After Losses

Tesla needs to meet delivery targets and pace up to sustain

Tesla needs to meet delivery targets and pace up to sustain

Tesla Motors Inc. has been dealing with a lot of criticism where many analysts are ridiculing the company for terming the EVs top acceleration as the prime that makes the company “ludicrous” -Nothing more than that. As per the various observers, the delivery target of the company for the entire year was ranging between 50,000 and 55,000 cars but now that does not really seem to happen.

When the preliminary figures were revealed for the third trimestral, it showed the entire results. The electric car giant had delivered 33,157 vehicles in the fiscal year of 2015. The company at this point has to cover an additional 16,843 to 21,843 which seems merely impossible considering the problems they are dealing with regarding the Model X sport utility car.

However, the car deliveries for the company are not really a long term issue which si quite ironic. What really matters to them that they will eventually generate money and hopefully in a massive quantity so that they can comply to their market which is one and a half times more than Fiat Chrysler Automobiles NV that have only s1% unit sales as per consensus.

During the third quarter in the FY15 is expected to repeat a similar pattern in the reporting period where they have gone back as far as the previous year. The expectations were so low that analysts cannot really estimate if they will be able to clear or not. Every trimestral was considered to be money making a year back but so afr they have not managed to get the same distinction. According to Wall Street Journal, “Analysts think Tesla will report a loss of 79 cents a share for the period, under generally accepted accounting principles, compared with a loss of 52 cents in the same period a year earlier.”

So now the investors have come to a point where they are actually tired of keeping an optimistic approach. Analysts and investors now wish to keep the technical accomplishments made by Tesla aside and actually see the harsh economic reality.

The Consumer Reports did a negative assessment of reliability recently where the target price of Tesla stock was lowered. So now it is high time that the company changes its course and actually thinks about what it can do to redeem itself once again and give appositive ray of hope to investors and analysts that are keeping a watch on the company.

Tesla Motors Earnings Report 3QFY15

Tesla Motors Earnings Report 3QFY15

The auto making giant has reported a strong quarter for the third time in the year but expects to do even better next time

Tesla Motors announced earnings for the third quarter of the fiscal year along with a very positive look towards the upcoming next three month financial period which has not only elevated investor sentiments but it has also helped the share price to go up on the index by around 10%. The giant has only recently reported its sales figures which turned out to be in a much better position than the expectations which actually raised the sentiments that the investors had towards the stock.

In the third quarter, Tesla stock reportedly attained an adjusted EPS and non-GAAP revenue much lower than the actual expectations which were made by the equity analysts in the market. The estimated EPS was to be around a loss of $0.48 whereas the reported figure turned out to be -$0.58. As for the revenue generated for the quarter, the expected figure was to be reported around $1.26 billion according to the expectations, whereas the actual adjusted figure turned out to be at $1.24 billion which showed an apparent decrease in the cash flow.

The progress that is currently being observed by the auto making company cannot be denied as in the same quarter last year, the total revenue which was recorded by Tesla was $932 million while the EPS stood at a price of $0.02.

On the other hand, the major reason for the 10% increase in the share value of the company is that the management of auto manufacturers has informed the investors and shareholders that it is expecting a much stronger quarter in the next season and that it is looking forward to some major improvements in business as well, which has put a great impression on the investors and has given its rivals in the industry something to think about.

Currently, Tesla is looking towards a delivery of 17,000 to 19,000 electric cars in the fourth quarter of the year and as per the actual guidance report, it shows that the auto maker could actually end up hitting a growth figure of 47% to 64%, which the analysts think could be pulled off by the giant.

 

Tesla Earnings Preview For 3Q 2015

Tesla Earnings Preview For 3Q 2015

The auto making company is all set to release its earnings for the third quarter of November 3 and analysts seem to be bullish about the stock already

Tesla Motors has been scheduled to report earnings for the third fiscal quarter of the year and will be adding its sales figures in the earnings seasons on November 3. The auto making giant has been covered by a number of equity firms in the industry and has been rated according to the business activities it has been making in the recent times. Equity giant Baird has also rolled out a research and analysis on the earnings that the auto maker might possibly be reporting next week and the firm’s analysts are of the opinion that even though positivity can be expected for the near term, the company might not be attaining its full year aims with the kind of problems it has lately been facing.

The Baird analysts have, however, given a strong target for the Tesla share price which has been reported at $282. This shows the kind of bullishness that the stock of the hybrid car maker is being looked at presently, right before the giant actually releases its earnings. The same analysts have also mentioned in their research note that it is very probable that the total units of the new Model X might not be as much as the company first planned them to be, which could prove to be a disappointing factor for the investors.

According to the Street analysts, Tesla stock has received expectations to report revenue of around $1.26 billion for the quarter with a loss of around $65.3 million in the non-GAAP revenue. As for the margins that will be attained by the auto making company in the quarter, it is also estimated that they might be lower than the consensus predictions which have been made by all the equity firms and is to be reported at 22.9%.

If Bloomberg research data is to be considered, it will be seen that from the 22 equity companies which have run over a detailed research on the stock of the company, around 8 firms have presented the smart car manufacturers with a rating of ‘buy’ while the same number of analysts suggested a ‘hold’ status for the stock. The consensus price target, however, stands at $302.85.