Tesla Motors Inc. Crushes Q1 Estimates, Announces Soft Q2 Guidance; Shares Fall 7%


The Tesla Model X is under heavy development right now. Image source: Tesla Motors.

Tesla Motors (NASDAQ: TSLA  ) just reported results for the first quarter of 2014. The electric-vehicle builder beat analyst targets on both the top and bottom lines but followed up with mixed next-quarter guidance. Responding to the news, shares fell more than 7% in after-hours trading.

In the first quarter, Tesla produced 7,535 Model S vehicles and shipped 6,457 units to its customers. 1,181 of these deliveries were sold with a resale value guarantee.

These shipments generated $713 million in non-GAAP revenue, which is a revenue metric that adds back the long-term value of financing contracts signed with an RVG. Further down the income statement, Tesla reported $0.12 of adjusted earnings per share.

Analysts were looking for earnings of $0.10 per share on $699 million in sales. Tesla beat both targets by a fair margin.

Looking ahead, Tesla sketched out second-quarter revenue of roughly $827 million, but the quarter will only be "marginally profitable" in non-GAAP terms. Analysts were looking for slightly lower next-quarter sales but also projected robust year-over-year earnings growth.

Tesla explained that battery cell supplies remain a bottleneck in the manufacturing process, and that production will exceed shipments in the second quarter because of long delivery times for build-to-order cars in Europe and Asia.

"We are expanding our factory capacity to support increased Model S production later this year and the introduction of Model X next year," said Tesla CEO Elon Musk and CFO Deepak Ahuja in a prepared statement. "Extensive development work on Model X is under way, and we expect to have production design prototypes ready in Q4."

Despite the big drop, Tesla has done well for investors. It was one of the best stocks to own in 2013. If you're looking for one of the best stocks to own in 2014, you can click here now


Read/Post Comments (2) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 08, 2014, at 12:00 PM, RedScourge wrote:

    "Tesla reported $0.12 of adjusted earnings per share.

    Analysts were looking for earnings of $0.10 per share on $699 million in sales. Tesla beat both targets by a fair margin."

    It's hardly "crushing" estimates to beat them by 2 cents per share on a $200 per share stock, but whatever you say.

  • Report this Comment On May 08, 2014, at 2:08 PM, investingNideas wrote:

    "battery cell supplies remain a bottleneck in the manufacturing process"

    They could go with less batteries and more hydrogen cells.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2948464, ~/Articles/ArticleHandler.aspx, 11/25/2014 5:33:25 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement