Tesla Motors Inc. is set to report its quarterly earnings on August 3, 2016. The automaker will provide investors with a comprehensive view of its second quarter results, and conduct a press conference to explain the outcome with analysts and investors.
The earnings report comes at a crucial time for the electric car manufacturer. Tesla’s huge target for vehicle delivery growth this year, its current Model X production ramp up, as well as the development of its Model 3 will be the main factors to watch when Tesla releases second quarter reports.
The company recently posted lower-than-expected deliveries. Tesla delivered a total of 14,730 vehicles, or 9,745 of the Model S and 4,625 of the Model X. These figures were well below the automaker’s guidance for 17,000 deliveries during the second quarter.
Deliveries came in short as the most extreme part of production ramp-up happened closer the end of the quarter than management anticipated, leading to a higher-than-expected combination of customer-ordered vehicles on trucks and transports before the end of the most recent quarter.
While the overall second-quarter vehicle production and deliveries fell short of Tesla’s guidance, the Model X production boost was actually strong. The company delivered 4,625 Model X units during the second quarter, up from 2,400 in the previous quarter.
However, the company’s move to introduce a cheaper version of the Model X fueled concerns among investors that demand for the new vehicle may not be as steady as Tesla was projecting. In this regard, the automaker may be compelled to cut its expectations for what level of Model X deliveries it can achieve. Therefore, market players must seek for some statement from the management on both Model X demand and production plans for the rest of 2016.
On the other hand, investors are likely to watch the ongoing development of Tesla’s Model 3 units. Set to start production late next year, the company should be making considerable progress in completing the design of the vehicle and getting ready for its production. In Tesla’s first quarter conference call, Tesla CEO Elon Musk said the automaker was almost done with the design of the Model 3.
Tesla’s Model 3 is crucial for its business plan to continue increasing production. As of May 15, the company had generated 373,000 deposit-backed bookings for the vehicle without any significant marketing of the new unit.
Tesla’s SolarCity Acquisition Vote to Pass
Tesla Motors CEO Elon Musk said he anticipates a majority of shareholders to support the car manufacturer’s proposed merger with SolarCity Corp. despite investor apprehension about the deal.
In an interview, Musk said he would add details of the merger in a new master plan, which he aims to publish this week.
In his email, Musk said the updated plan will include a summary of how Tesla’s SolarCity purchase would help transform the automaker into an energy firm specializing in utilizing batteries to generate and store power.
Tesla offers to pay $26.50 to $28.50 a share to acquire SolarCity, a premium of as much as 30 percent based on its June stock value.
“The most informed investors are highly supportive of the transaction,” Musk said. As of last week, he said he had “yet to talk to an investor after I have fully explained the situation and not had them support it.”
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