Wedbush Raises Tesla Motors Inc 2015 Deliveries Estimate

Tesla Motors Inc (NASDAQ:TSLA) reported strong results on deliveries for the second-quarter with a 55% increase in non-GAAP revenue to $858 million and net income of $16 million or $0.11 per share.

Wedbush Raises Tesla Motors Inc 2015 Deliveries Estimate

Tesla Motors 2Q earnings beat estimates

The electric car manufacturer outperforms the $811 million in revenue and $0.04 in earning per share consensus estimate of Wall Street analysts.

The financial results of Tesla Motors Inc (NASDAQ:TSLA) is even higher compared with the $785 million in revenue and $0.04 in earnings per share estimate of Craig Irwin, an analyst at Wedbush.

During the second-quarter, the electric car manufacturer produced 8,763 Model S units, an increase of 16% in the previous quarter. Tesla Motors Inc (NASDAQ:TSLA) said it had been producing 800 cars per week. The company delivered 7,579 Model S vehicles in the same period a year ago.

Model S delivery guidance

According to Irwin, the furlough to reformat the factory of Tesla Motors Inc (NASDAQ:TSLA) to expand its manufacturing capacity reduced its delivery guidance for the third-quarter of 2014. The electric car manufacturer expected to deliver 7,800 units.

Tesla Motors Inc (NASDAQ:TSLA) estimated that the impact of the furlough and restart of its factory in Fremont would be ~1,700 units. Irwin noted that the company’s production guide of 9,000 units is lower by approximately 2,000 units without the lost time.
For the year 2015, Tesla Motors Inc (NASDAQ:TSLA) predicted that it would be able to deliver around 100,000 units annually by the end of 2015.

Wedbush: Tesla well-positioned to deliver an aggressive volume ramp

Irwin raised his deliveries estimate for Tesla Motors Inc (NASDAQ:TSLA) for 2015 from 52,000 units to 62,000 units as the company benefits from its new production capacity.

In a note to investors, Irwin wrote, “Guide is for operating expenses to again climb significantly into 3Q14 with SG&A up 15% and R&D up 20% as Tesla invests in diverse projects, and we update our model.”

In addition, the analyst perceived” strong positives” for Tesla Motors Inc (NASDAQ:TSLA) when it comes to its direction into longer-term battery cost reduction and the Gen-II vehicle target costs.

Furthermore, Irwin believed that the public would be receptive and willing to buy electric vehicles while retaining reasonable expectations. According to him, “Tesla’s multi-year lead over credible completion suggests the company is well positioned to deliver an aggressive volume ramp.”

Irwin reiterated his Outperform rating for Tesla Motors Inc (NASDAQ:TSLA) with a price target of $275 per share.