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electric vehicle and storage company Tesla reported worse than expected earnings Wednesday with a larger loss and lower revenue. $TSLA fell over 10% on the news, however the company reaffirmed full-year delivery guidance, mostly Model 3s.

Tesla Model 3 Tesla Model 3

Tesla Inc. (NASDAQ: $TSLA) Reported Earnings After Close Wednesday

$2.90 Beat $(0.15) EPS and $6.82 billion Beat $6.32 billion forecast in revenue

Earnings

Tesla Inc. ($TSLA) reported a loss per share on an adjusted basis: $1.12 vs. 40 cents expected on revenue of $6.35 billion versus $6.41 billion expected based on average estimates compiled by Refinitiv. That compares with an adjusted loss of $3.06 per share on $4 billion in revenue during the same period last year.

Tesla Inc NASDAQ: TSLA

Market Reaction > After hours $236.99 −27.89 (-10.53%)

Highlights

Tesla Q2 2019 earnings

Automotive

Tesla achieved a record in terms of vehicle production and deliveries, selling 95,200 vehicles during the second quarter and producing 87,048 cars during that period, it said earlier this month.

  • Automotive revenue for Tesla of $5.38 billion during the second quarter, with $111.2 million from regulatory credits of every type.
  • The company blamed a decline in the average sales price of its vehicles during the second quarter on the roll out of its Model 3 Standard Range Plus, and sales of inventory Model S and Model X vehicles that lacked an upgraded powertrain, which gives the cars the ability to drive further on a single charge. 
  • Tesla reported that the average sale price of its Model 3s in North America remained at $50,000, the same level as in late April, when the company delivered its first-quarter results.
  • Tesla delivered around 158,200 of its cars to customers in the first six months of 2019.
  • It has to deliver more than 200,000 in the back half of the year to hit the low-end of its guidance.
  • The company says it has a weekly run-rate of 7,000 Model 3 vehicles, and aims to be able to produce 10,000 Model 3s weekly by the end of 2019.
  • To make high-volume sales of the Model 3 possible, Tesla said in its second-quarter letter, it plans to improve production at its existing factories including its battery plant outside of Reno, Nevada and a car assembly in Fremont, California.

Tesla deliveries and production for Q2 2019

Energy Storage

  • Tesla products, the Powerwall and Powerpack increased during the second quarter,
  • Sales of its solar energy products declined.
  • Tesla combines these into a single line item, and said they generated $368.2 million in revenue from energy generation and storage products in the second quarter, a 2% decline over the same period last year.
  • Tesla’s Powerwalls, the home storage solution, are now installed at more than 50,000 sites

China

Tesla is aiming for a start of production of the Model 3 in China by the end of the year, which will allow it to benefit from lower costs to deliver to customers there, while reaping the rewards of local regulatory credits.  Tesla management said it is on track to launch the Gigafactory in Shanghai, China, by the end of 2019 and roll out Model Y by the fall of 2020.  

CapEx

The company lowered capex guidance down to $1.5 billion to $2 billion. It previously expected 2019 capital expenditures to reach $2 billion to $2.5 billion. That money is earmarked  toward development of the company’s “main projects,” including the completion of its Gigafactory in Shanghai, Model Y SUV and Tesla Semi, as well as expansion of Tesla’s Supercharger and service networks.;

Cash Position

Tesla following a nearly $3 billion capital infusion in May sees its cash position increased to $5.0 billion, with $2.4 billion in net proceeds from its equity and convertible debt offerings in May, and $614 million of free cash flow.

Source: Tesla. AlphaStreet

From The TradersCommunity News Desk

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