Tesla Motors Inc (NASDAQ:TSLA) released its earnings results after closing bell today, smashing earnings estimates. However, Wall Street was not thrilled with the report, which indicated non-GAAP earnings of 12 cents per share, compared to consensus estimates of 7 cents. The automaker’s big problem was the number of deliveries, which was an excellent number—but not excellent enough, apparently.
Tesla sets new production record, beats delivery guidance
In tonight’s report, Tesla Motors Inc (NASDAQ:TSLA) said it delivered 6,457 Model S sedans, which was a little more than its own guidance. The automaker’s deliveries actually were more than the average consensus estimate for deliveries. However, it didn’t beat the highest estimate. Tesla also set a new record for production, churning out 7,535 cars during the quarter. Management said they’re on track to deliver approximately 7,500 Model S sedans in the current quarter and 35,000 deliveries for the full year. They expect to produce between 8,500 and 9,000 cars during the current quarter. Currently, production is at 700 cars per week
Tesla Motors Inc (NASDAQ:TSLA) plans to launch the right-hand drive Model S in the U.K. in June and then in Hong Kong and Japan this summer. The automaker said production on the Model X is on track to ramp up in spring 2015 and that prototypes should be ready in the fourth quarter of this year.
Tesla invests in production, gigafactory
The automaker said it still plans to invest between $650 million and $850 million in capital expenditures to increase production capacity. Tesla Motors Inc (NASDAQ:TSLA) said it also plans to grow its store, service center and Supercharger network and invest in continued development of the Model X and the Model S.
They also plan to start construction on the gigafactory this year. Tesla Motors Inc (NASDAQ:TSLA) said the project is on track to start producing battery cells and packs in 2017. They haven’t finalized the location yet but continue to plan work on two locations at the same time to minimize delays after ground is broken at the sites. Tesla said it plans to hold discussions with its current battery supplier Panasonic and other potential supply chain partners about joining in on the factory. By the time the gigafactory is at full speed in 2020, they expect it to be able to produce 50 GWh in battery packs and 35 GWh in cells.
Tesla Motors Inc (NASDAQ:TSLA) also said it just started producing its powertrains for the Mercedes B-Class vehicle and are planning to ramp up production of that soon and grow it throughout the year.