Tesla Motors Inc Plunges After Deliveries Disappoint

Tesla Motors released its second quarter earnings report after closing bell tonight, posting adjusted losses of 48 cents per share on non-GAAP revenue of $1.2 billion. Analysts had been looking for losses of 60 cents per share and $1.19 billion in revenue. In last year’s second quarter, the automaker reported earnings of 11 cents per share and $769.35 million in revenue.

Tesla produces record number of vehicles

GAAP revenue was $955 million, while GAAP loss was $1.45 per share. Non-GAAP gross margin was 23.4%, while GAAP gross margin was 22.3%. Tesla reported 11,532 Model S deliveries, which was in line with their announcement of about 11,507 deliveries last month. The automaker produced 12,807 vehicles. The average selling price fell as consumers ordered fewer of the more expensive P85D models.

Global Return Value Investments, LP June 2020 Performance Update: Up 45% In Q2

Global Return Value InvestmentsGlobal Return Value Investments, LP performance update for the month ended June 2020. Q2 2020 hedge fund letters, conferences and more Risk Management in 1H 2020 Risk management strategies in a portfolio are like airbags in a car – you’ve been told they’re there and that they’ll work when needed, but you never really know Read More

Tesla said global orders for the Model S increased after the launches of the 85D and 70D models. The automaker noted a 50% increase in Europe and almost double the number of orders in Asia compared to last year.

Tesla cuts delivery guidance

Tesla management previously said they expect to delivery 55,000 vehicles this year, but now they expect to deliver between 50,000 and 55,000 vehicles. Management warned of “many dependencies” that could influence fourth quarter production and deliveries. For the third quarter, they expect to produce a little over 12,000 vehicles, including “a small number” of Model X crossovers.

Tesla is also ready to begin producing its energy storage systems, ramping production in the fourth quarter. They plan to expand production in the first quarter of next year at the gigafactory “on a more automated line.”

As of this writing, shares of Tesla Motors were down 6.34% at $253 per share in after-hours trades.