Earnings Preview: Tesla Motors Inc and SolarCity Corp

Tesla Motors Inc (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY) are scheduled to report its earnings results for the third quarter after the market close today, November 5.

Earnings expectations for Tesla Motors

Tesla Motors Inc (NASDAQ:TSLA) is expected to report average earnings of –S0.01 per share and $889.28 million in revenue for the third quarter based on data compiled by Yahoo! Finance.  Analysts have a high estimate of $0.10 in earnings per share and $973.70 million in revenue.

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During the third quarter last year, the electric car manufacturer posted $0.12 in earnings per share on $602.58 million in revenue.

Wall Street analysts will also monitor whether Tesla Motors Inc (NASDAQ:TSLA) will be able to meet its guidance. During the previous quarter, the electric car manufacturer said it would be able to produce 9,000 vehicles for the third quarter or 750 units a week.  The company anticipated that it will be able to deliver 7,800 vehicles for the quarter.

Analysts are also interested to hear new details about the Model X vehicle given the fact the Tesla Motors Inc (NASDAQ:TSLA) increased its spending on research and development particularly for the improvement of the design and production of the new electric SUV.

Tesla CEO Elon Musk previously stated that there is a significant demand for the Model X, which is expected to roll out in the spring of 2015.

Furthermore, analysts also want to know if Tesla plans for the construction of the gigafactory is on schedule.

Earnings expectations for SolarCity

SolarCity Corp (NASDAQ:SCTY) is expected by analysts to post $1.11 losses per share and $60.23 million in revenue for the third quarter based on data compiled by Yahoo! Finance.

Zacks Equity Research estimated that SolarCity Corp (NASDAQ:SCTY) to post losses of $0.46 per share, better compared with the consensus estimate.

During the second quarter, the company reported $0.52 GAAP net loss per share on $61.3 million in revenue.

For the third quarter, SolarCity Corp (NASDAQ:SCTY) expected to report around $50 million to $55 million in GAAP operating lease and solar energy systems incentive revenue. Its GAAP solar systems revenue is expected to be around $4 million to $8 million and GAAP operating lease and solar energy incentive gross margin to be around 50% to 55%. T

Solar City Corp (NASDAQ:SCTY) anticipated to post non GAAP losses between $1.10 and $1.20 per share.The company expected to deploy 135 MW-150 MW in the third quarter.

 Stock movement

Hours prior to the release of its earnings results, the stock of Tesla Motors Inc (NASDAQ:TSLA) is down by more than 2% to $232.84 per share. SolarCity Corp (NASDAQ:SCTY) is also down by more than 8% to $52.22 per share around 12:36 in the afternoon in New York.