Tesla Beats The Street With 6,457 Cars Delivered, Model X And Battery Factory On Track

May 7 2014, 3:44pm CDT | by

Tesla beat ever number that mattered, reporting revenues of $713 million and earnings of $0.12 per share while delivering 6,457 vehicles — slightly more than its guidance (but below the 6,900 in the prior quarter as expected). Still, the stock is sliding after hours, down about 6%. Investors must have been looking for even better results as gross margins were up to a record this quarter, increasing sequentially despite Tesla’s decision to add new titanium underbody shields to further protect its cars against fire risk. Further, the results were achieve with zero revenues from Zero Emission Vehicle credits, which propped up last year’s first quarter by $68 million. Tesla did book $12 million in other regulatory credits, $3 million less than last quarter.

The company actually produced an additional thousand vehicles this past quarter beyond the deliveries, bringing the total to 7,535 and a run rate of 700 per week. It says it’s on track to hit both its goals of 1,000 per week production and 35,000 deliveries by the end of the year. Looking forward, Tesla sees right-hand drive deliveries beginning in the U.K. this month and Japan in summer. It reiterated plans to deliver the Model X in the spring of 2015 and to open its battery Gigafactory by 2017.

While Tesla says batteries are still constraining its production, it believes next quarter’s deliveries will set a record with 7,500 and that it can produce between 8,500 and 9,000 cars. As the pipelines to Asia and Europe get filled more efficiently over time, it hopes to shrink the gap between production and deliveries. In the meantime, thanks to a convertible offering that raised $2 billion last quarter, Tesla has $2.6 billion on the balance sheet, giving it the resources the company says it needs to complete its many initiatives.

Refresh this page for updates and coverage of Tesla’s earnings call at 5:30pm Eastern.

Follow me on Twitter. Find the rest of my Forbes posts here.

 
 
 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Chrysler hit with largest NHTSA Penalty Ever
Chrysler hit with largest NHTSA Penalty Ever
The Department’s National Highway Traffic Safety Administration (NHTSA) announced a $105 million penalty for Chrysler.
 
 
10 Improvements Found in 2016 Mazda MX-5 Miata
10 Improvements Found in 2016 Mazda MX-5 Miata
Mazda is ready with its fourth generation 2016 Mazda MX-5 Miata Roadster.
 
 
Honda Accord 2016 Features Apple CarPlay and Android Auto
Honda Accord 2016 Features Apple CarPlay and Android Auto
The all-new 2016 Honda Accord will be the first Honda model and among the first high-volume cars in the marketplace to feature Apple CarPlay and Android Auto.
 
 
Chrysler sends out 1.4 million USB Sticks to Prevent Car Hacking
Chrysler sends out 1.4 million USB Sticks to Prevent Car Hacking
The Wired story about remotely taking control of a Jeep Cherokee has scared Chrysler owners around the world. Now the company takes preemptive measures to make their cars save again.