Tesla Motors Inc (TSLA) And SolarCity Corp (SCTY) Earnings Preview

Tesla Motors Inc (TSLA) And SolarCity Corp (SCTY) Earnings Preview
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While it seems like everything Elon Musk touches turns to gold, it’s quite possible that today may see some tarnish appear on both the performance of Tesla Motors Inc (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY).

Tesla Motors Inc (TSLA) And SolarCity Corp (SCTY) Earnings Preview

Since the beginning of April, Tesla Motors Inc (NASDAQ:TSLA)’s stock has risen over 220 percent, while SolarCity Corp (NASDAQ:SCTY) has seen a gain of over 125 percent. SolarCity are presently down $3 for the day after losing $1.50 yesterday. Most of this drop can be attributed to a weak forecast from The Street as it reports its earnings after the close of the market today.

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Tesla recovered after a big early morning loss

After a big early morning loss, Tesla Motors Inc (NASDAQ:TSLA) has recovered a bit but is still trading down over $7.20. This comes on the heels of losing $2.00 yesterday. Following a surprise profit last quarter, Tesla’s stock went soaring upwards, however, now California is considering taking away the zero-emission credits which Tesla used to benefit its first quarter numbers and were a large part of the profit they showed when they booked $67.9 million in credits.

Tesla Motors Inc (NASDAQ:TSLA) may also be overbought and nearly a quarter of its shares are held by short sellers ready to jump following its earnings report this afternoon.

The consensus estimate is looking for Tesla Motors Inc (NASDAQ:TSLA) to report a loss of $0.17 per share compared to a year-over-year loss of $0.89 last year. Revenue is expected to come in at $383.40 million for the quarter. While this is a gain of over 1100 percent from the corresponding quarter last year, it would be a loss of 30 percent over first quarter revenues. For the year, revenue is expected to reach $1.8 billion a gain of 334.70 percent.

Tesla made amazing strides in getting cars out the door

Obviously, the release of the Model S is largely responsible for this, but Tesla Motors Inc (NASDAQ:TSLA) has also made amazing strides in getting cars out the door compared to the year prior.

SolarCity Corp (NASDAQ:SCTY) is expected to post a quarterly loss of $0.38 per share, though analysts are agreed with a loss of $0.18 per share predicted by one and a loss  $0.58 per share from another. For the fiscal year, the consensus expects a loss of $1.58 per share compared to a loss of $5.22 per share the fiscal year prior.

Revenue is expected to reach $27.44 million for the quarter and $136.2 million for the year, a gain of 8 percent in sales.

Both of these company’s stock is largely being driven by the “Musk Effect” but its anyone’s guess whether this can continue in after-hours trading following earnings reports this evening.


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While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at [email protected]</i>
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