Tesla Motors Inc (TSLA) Q1 Earnings: What To Expect?

Tesla will release its financial results for the first quarter on Wednesday after the market close, followed by a conference call and Q&A with management. Apart from disclosing the financial results, the EV firm is expected to provide updates on several things related to the difficult production ramp of the Model X and more details about the Model 3.

Will Tesla (TSLA) opt for capital raise?

Wall Street expects revenue for the quarter at $1.588 billion, while financial estimate crowd-sourcing website Estimize predicts revenue of $1.605 billion. Wall Street estimates a loss per share of 52 cents for the quarter, while Estimize expects it to be 54 cents per share, says Elektrek. In the last quarter, Estimize’s and Wall Street’s estimates were very close to the actual revenue, but they missed on earnings, and now both of them are making safer predictions with a loss.

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Tesla Motors Inc (NASDAQ:TSLA) has received more than 400,000 reservations for the Model 3, helping its cash position by roughly $400 million. Still, the company is rumored to be planning a capital raise to profit from the recent jump in the stock price, the website says. However, it is nothing more than a rumor at this point, and Tesla’s management is expecting to soon become cash flow positive and finance the automaker’s investments without a capital raise.

A lot depends on deliveries

Tesla Motors Inc (NASDAQ:TSLA) stock has gone up by 56% since mid-February, more than five times what the Dow Jones has gained in the same timeframe. Whether the stock will continue to rise or not after the release of earnings is what investors are concerned about.

Tesla Motors Inc (NASDAQ:TSLA) said that in the first quarter, it delivered 14,820 vehicles globally, which is significantly lower than what it did in the previous quarter when it delivered 17,400 cars but higher than the 10,045 vehicles it delivered in Q1 2015.  When Tesla releases its latest financial results, it generally updates deliveries, but the difference is generally less than 1%, the report says.

Tesla Motors Inc (NASDAQ:TSLA)’s deliveries in the first quarter were short by 1,180 vehicles, and this resulted in a decline of 3.4% in the stock price. This highlights the fact that Wall Street places a lot of emphasis on Tesla’s ability to deliver its vehicles in a timely manner.

On Monday, Tesla Motors Inc (NASDAQ:TSLA) shares closed up 0.43% at $241.80. Year to date, the stock is up by almost 2%, while in the last year, it is up by almost 7%. The stock has a 52-week high of $286.65 and a 52-week low of $141.05.