Tesla Motors Inc. will reveal the earnings it managed to draw over the second quarter on Wednesday. It will take place mere days after the company announced its now definite $2.6 billion merger with SolarCity.
The EV company is only beginning to shake off the bad Autopilot publicity that has stuck to it over the last few weeks. Investors and Wall Street have conveyed their unanimous dislike of Tesla’s recent buyout too. Safe to say, Elon Musk and co. are already on poor terms with the public and investors. It is hoped that some great news will be derived from the Q2 earnings call.
Tesla Delivers Failure
Tesla Motors has already revealed that it failed to meet its Q2 vehicle delivery goal. It was
suggested by some analysts that the early reveal would render the news irrelevant come this Wednesday, meaning Tesla would seem to have nothing but good news to share on August 3.
So what can we expect to hear about the second quarter?
Missing its Q2 deliveries by just under 2,700 should reflect badly on the company’s financials. If the average Tesla pulls in upwards of $100,000 per sale then vehicle sales figures should be around $270 million short of what they actually would be had the company met its goal.
Although the company missed it goals, it’s deliveries are up from what they were in the same quarter last year. This is only watered down by the fact that Q2 deliveries are below those of the first quarter. Tesla pegged the failure to the mixture of Model X and Model S productions as well as that some 5000 of its EVs were still in transit by the end of the third quarter.
Perhaps this slump in deliveries is forgivable, but it doesn’t deter from one looming question. If Tesla fails to accurately project its 3 month projections, how can we place any value on its long-term targets. The always ambitious company has a lot expected from it right now. Beyond the Model 3, Tesla promises a car delivery capacity of half a million by the end on 2018. This mean the company has to up its current capacity tenfold to meet that. The unease of TSLA investors is understandable.
Model 3 and other ventures
The Model 3 is Tesla’s biggest immediate project right now. It’s successful delivery would allows the company to easily pull itself out of the financial negatives. T he Q2 call is expected to reveal some more accurate figures about Model 3 orders. The last official figure pegs the order rate near 400,000. It would be nice to hear if that number has gone up by a lot or if more people are withdrawing their paid reservations.
Some insight into Tesla’s energy ventures would serve well. The company is running full-on with the SolarCity merger that has investors all worked up, and not in a good way. Some reassurances will need to offered regarding the Powerwall and Musk’s famed, new “Master Plan”.
On the whole, Wall Street projects a loss per share of around $0.53. We look forward to August 3 rd, where Tesla Motors is expected to reveal some much needed insight on a large number of items.0