Tesla will soon reveal its first quarter earnings, here's what to expect from it.
After the markets close on Wednesday, Tesla Motor Company is expected to reveal its first quarter earnings for the fiscal year of 2015. The news will be covered shortly along with the conference call Mr. Elon Musk the chief executive officer of Tesla is about to make as soon as they post they earnings for the aforementioned time.
However, Business Insider expects the following things from the earnings call.
Tesla Motors is expected to cross $1 billion for the first quarter of 2015 where they are expected to deliver 10,000 cars. The consensus for the earnings per share of the company is $0.5 (loss) whereas earlier in FY14 I for Q1 they had an EPS of $0.12.
The company has focused a lot on China during the first quarter which is expected to be a market with numerous growths potential. But according to an analyst at Jefferies, Dav Doley who initially gave a bullish price target of $350 where he believes that China is not the market which Tesla needs to be worried about. The demand for Tesla electric cars is pretty massive in Europe and this would actually help them to boost sales by 2020. If this turns out to be true then the company would get time to resolve the persisting issues in China.
Apart from this, Mr Elon Musk people are still not sure if the company is actually spending money to make Tesla products and services better. It was expected that the company will spend money in order to boost production in the years to come. Apart from that the news about a Gigafactory is also penetrating in the market, However now, it is expected that the earnings reports will clear out whether the company will be able to raise money on their own which was initially thought to be a compulsion.
A report regarding the total deliveries that have been made by the company is expected to be ready for the upcoming quarter. Tesla claimed earlier that it would actually deliver out 55,000 Model S Sedans and Model X SUVs overall in 2015. However, now 40,000 vehicles need to be sold out to achieve that target that will result in pressure on the company during the third and fourth quarter.
Moreover, the company will start selling its storage batteries in a few months that will again be a new prospect of growth for the company in general.
The earnings report for Tesla for Q1 FY15 will not really be something exceptional however the coming quarters will mark a greater difference.
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