Tesla Reports Much Worse Than Expected Losses, But Investors Unconcerned

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Tesla Inc (TSLA) released its latest earnings report after closing bell tonight, posting adjusted losses of $1.33 per share on $2.7 billion in revenues. Analysts had been expecting adjusted losses of 83 cents per share on $2.6 billion in sales. In the year-ago quarter, the company reported 57 cents per share in non-GAAP losses and $1.6 billion in revenue.

Tesla’s (TSLA) production still on the rise

Automotive revenue rose to $2.3 billion from $2 billion in the year-ago quarter. The GAAP automotive gross margin improved to 27.4% from 22.6% last year. The non-GAAP automotive gross margin improved to 27.8% from 22.2% last year.

Tesla Inc (TSLA) said vehicle production grew 64% in the first quarter compared to the year-ago quarter. The company said the Model 3 is still on track for production to begin in July. The company said the “Release Candidate vehicles” are being built using “production-intent tooling and processes” and road testing is underway while they continue working on expanding the production line to produce 5,000 vehicles a week later this year ahead of next year’s goal of 10,000 per week.

Tesla Inc (TSLA) also deployed 150 megawatts of solar energy generation and installed 60 megawatt-hours of energy storage during the first quarter.

Tesla (TSLA) maintains outlook

Tesla Inc (TSLA) kept its outlook for the first half of the year unchanged at 47,000 to 50,000 deliveries for 61% to 71% annual vehicle delivery growth. It plans to provide second-half delivery guidance after beginning Model 3 production in July.

Before tonight’s earnings release Investing.com analyst Clement Thibault weighed in, saying that he’s skeptical on the company’s long-term results.

“Over the past few years, Tesla has been riding positive sentiment, not gaining on fundamentals,” he said. “Understanding how to take advantage of sentiment is an important investing skill, but confusing momentum driven by sentiment rather than because of actual fundamentals is a serious capital markets mistake.”

Shares of Tesla Inc (TSLA) were little changed in extended trading as they ticked lower by as much as 0.49% to $309.25.

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