Tesla strong post Earnings

Tesla, Inc. (NASDAQ: TSLA) is still making gains as the week progresses and made a 5+ point gain early in the trading day. Q1 2017 Earnings that were released on May 3rd 2017 reported revenues of $2.3M a 15% quarter over quarter increase from their automotive business and 2.1 million from their energy generation and storage revenue a 63% quarter over quarter increase. Assets were reported upwards of $4B in cash and cash equivalents. Taking into account that for much of Q1 operating expenses was used for acquiring Solar City and Grohmann, Tesla plans to continue expanding their infrastructure and bust production to support their acquisitions as well as increase in efficiency.

Tesla has made aggressive strides in advancing their vehicle production as they increased it by 64% Year over year (YOY), thus allowing them to set new quarterly records of 25,051 deliveries that translates into $2.7B in GAAP revenues. Tesla’s report states: “Based on our current order and production rates, our first half outlook remains unchanged at 47,000 to 50,000 deliveries, which represents 61% to 71% annual vehicle delivery growth. Moving past Q2, particularly as Model 3 becomes available, one of our challenges will be to eliminate any misperception about the differences between Model S and Model 3.”

In addition, their forecasts for the remainder of the year appears to be more or less similar to that of Q1 results and possibly a bit higher. According to Tesla’s earnings report, “We expect Q2 GAAP and non-GAAP operating expenses to be flat to slightly up from Q1, including expenses associated with the final stages of Model 3 development and growth in our customer support infrastructure. Q2 interest expense will reflect the full quarter of impact for the convertible securities we issued in Q1, leading to about $115 million of interest expense per quarter. We expect that year-to-date capital expenditures will be slightly over $2 billion by the time we start Model 3 production. We expect additional investments through the remainder of the year as we increase automation and add production capacity. This year will have many major milestones for Tesla with the introduction of innovative products that advance electric transport as well as energy generation and storage. We remain confident in our 2017 plan and long-term mission of accelerating the world’s transition to sustainable energy”. Strap in and get ready for the innovation Tesla ride.

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