Tesla announced its deliveries for the 4th quarter of 2016 had declined by 9.4% on Tuesday. This is mainly due to short-term production problems from the transition to the new autopilot hardware. During the quarter, 22,200 vehicles were delivered, down from 24,500 vehicles previously. In addition, total deliveries for 2016 only came in at 76,320 vehicles, slightly lower than the group’s own projection of between 80,000 and 90,000 vehicles. Despite the decline, it must be noted that nearly 2,750 vehicles missed being counted as deliveries in the 4th quarter because of last-minute delays in transport or due to the inability of customers to physically take delivery.
On Wednesday, Tesla fell 0.05% during the normal session, before surging in after-hours trade following the release of its 3rd quarter results. The group posted its 2nd profitable quarter ever which easily beat analysts’ expectations. Revenue for the period came in at $2.3bn, much better than estimates of $1.98bn. In addition, the group saw adjusted earnings surge to 71 cents per share, vastly better than expectations of a 54 cent per share loss. Tesla’s strong performance was partly attributable to new product launches, increased store efficiency and new store openings.
Over the weekend, Tesla motors announced that it had recorded its best ever sales quarter during the 3rd quarter of 2016, with global deliveries more than doubling over the past year to 24,500. This figure included 15,800 Model S sedans and 8,700 Model X SUV’s. In addition, another 5,500 vehicles were in transit to customers, but will therefore be counted as 4th quarter sales. The group said its 3rd quarter production increased by 37% from the 2nd quarter to 25,185 vehicles and confirmed that it would produce 50,000 vehicles in the 2nd half of 2016. Tesla has already started taking reservations for the Model 3, with the group estimating that it will reach its sales target of 500,000 cars per annum in 2018.
On Monday, Tesla added 0.46% despite news its proposed acquisition of SolarCity could be delayed. As it stands, four lawsuits have been filed by two individuals, which allege board members have breached their fiduciary duty. Ownership connections between the companies have raised concerns about Tesla’s motivation in acquiring SolarCity. Elon Musk is the largest shareholder in both companies. As a result, both Tesla and SolarCity have acknowledged the inherent conflict of interests in the merger and have taken steps to avoid them. If a judge grants any of the plaintiffs an injunction, the finalization of the deal could be delayed until 2017. A hearing has been scheduled for the 18th of October.
On Wednesday, Tesla saw its latest results miss estimates for both earnings and revenue. During the quarter, revenue came in at $1.56bn, slightly lower than estimates of $1.62bn. In addition, the group reported an adjusted loss of $1.06 per share for the 2nd quarter, sharply lower than expectations of a loss of 52 cents per share. Despite the large miss in earnings, investors remain much more focused on next year rather than these near-term results. With this in mind, Tesla showed progress in increasing its production capabilities, which has been a long-standing issue for the group. By the end of the quarter, Tesla was consistently making 2,000 vehicles per week, on track to deliver 50,000 during the 2nd half 2016.
Tesla Motors ended higher on Friday, up 1.99%, despite news reports that the group was under investigation by US regulators following a fatal accident involving a Tesla Motors sedan that was driving on autopilot. The crash involved a 40-year old man who was killed when his 2015 Model S drove under the trailer of an 18-wheeler on a highway in Florida. According to a statement from the group, the autopilot did not notice the white side of the tractor trailer against a brightly lit sky, which resulted in the brakes not being applied. Lastly, it must be noted that this crash is the first know fatality in more than 130mn miles of autopilot driving.
Tesla ended sharply lower during Wednesday’s normal session, down 4.2%, but reversed its losses in after-hours trade following results which were in line with Wall Street’s expectations. For the first quarter, Tesla reported a loss of 57 cents per share, up from 36 cents a year ago, but marginally better than expectations of loss of 58 cents per share. In addition, revenues increased to $1.6bn, an increase of 45% compared to the first quarter of 2015. Furthermore, the group reported deliveries of 14,810 vehicles in Q1, but disappointed analysts’ with a projection of only 17,000 deliveries in Q2. Nevertheless, Tesla sill expects to deliver between 80,000 to 90,000 vehicles for the full year.
Yesterday, the electric vehicle maker beat Wall Street expectations when it released its 2nd quarter results, but lowered its deliveries guidance for the year. For the period, the company reported a loss of $0.48 cents per share on $1.20bn in adjusted revenue, higher than expectations of a loss of $0.60 per share on $1.18bn in revenue. Disappointingly however, was that that it lowered its full-year delivery guidance to between 50,000-55,000 units, after announcing in May that it was expecting to deliver a combined figure of 55,000 Model S and Model X units. In response to the results, the company fell more than 7% in after-hours trading, but pared some of the losses in later trade.
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