Tesla Motors Inc (TSLA) 4Q Results Are In; Beats Across The Board

Tesla’s 4Q13 results are in, and analysts delve into the details, noting that even with slightly downbeat guidance, there are several positives that should continue to drive the stock upwards.

Tesla Motors Inc (NASDAQ:TSLA) posted a beat for the quarter – and while the company guided to below consensus 1Q deliveries, guided to 2014 deliveries of 35k units, well above our 30k estimate, and better gross margins (28% in 4Q’14). The latter two items will likely continue to provide support for the shares.

• Revenue of $615mn (vs Barclays of $608mn and consensus of $677mn)
• Model S deliveries of 6,892 (vs Barclays of 6,050 and guidance of 6,900)
• Non-GAAP automotive gross margin of 25.2% vs Barclays of 24.1% and guidance of 25% (which assumed no contribution from ZEV credits, there were no ZEV credits in 4Q)
• Non-GAAP EPS of $0.33 (Barclays $0.11, consensus of $0.21)

• Delivery guidance of 6,400 (vs Barclays 6,171 and consensus of 6,927)
• Production of 7,400 units, up from 6,587 in 4Q’13

Deliveries of 35k units in 2014 (vs. Barclays at 30k and consensus).  Towards the end of the year TSLA expects sales in Europe and Asia combined to be almost twice that of North America

Production reaching 1,000 units per week by end of year (vs. 650 units/week in December 2013)

Tesla Motors Inc (NASDAQ:TSLA) expects further improvements in gross margin, targeting  non-GAAP automotive gross margin of 28% in 4Q’14 (excluding potential ZEV credit sales) vs. Barclays 26%

Gigafactory announcement to come ‘shortly,’ will also serve the stationary solar power market

Model X deliveries delayed until spring 2015

Tesla Motors Inc (NASDAQ:TSLA) is scheduled to host a webcast at 5:30 PM ET to discuss its earnings results. Presentation materials and webcast info can be found at http://ir.teslamotors.com.

Analysts are pleased to include the Barclays U.S. Autos and Auto Parts earnings analyzer, a formal worksheet to help investors analyze Tesla Motors Inc (NASDAQ:TSLA)’s results by measuring the variance between their estimates and consensus.

Figure 1. Tesla Earnings Analyzer