Tesla Motors (TSLA) reported 4Q earnings on Wed 10 Feb 2016 (a/h)

** charts before earnings **

 

** charts after earnings **

 

Tesla Motors misses by $0.99, misses on revs; sees net cash flow positive FY16, reaffirms FY16 deliveries :

• Tesla Motors (TSLA) was +12% in extended hours after missing Q4 estimates but offering better than feared FY16 guidance, reaffirmed deliveries. TSLA also said it sees net cash flow positive in FY16.

• Reports Q4 (Dec) loss of $0.87 per share, excluding non-recurring items, $0.99 worse than the Capital IQ Consensus of $0.12; non-GAAP revenues rose 59.5% year/year to $1.75 bln vs the $1.81 bln Capital IQ Consensus.
• Preannounced deliveries +76% to 17.4K vs. 17-19K guidance.
• "For 2016, we are planning for even faster delivery growth than last year. We plan to be net cash flow positive and achieve non-GAAP profitability for the year (consensus $1.51), even after investing about $1.5 billion to add more production capacity, start cell production at the Gigafactory, and establish additional customer support infrastructure. Moderate GAAP profitability is expected in the fourth quarter. These investments will help prepare the way for Model 3, which is on schedule to be unveiled on March 31st and to start production and deliveries in late 2017.
• To achieve these goals we plan to deliver 80,000 to 90,000 new Model S and Model X vehicles in 2016 (reaffirmed), representing accelerating growth over 2015 at the midpoint of the range. We expect our average vehicle transaction price to increase slightly during 2016, as Model X grows to become a larger share of our deliveries throughout the year.
• In Q1, we plan to grow deliveries 60% year on year to ~16,000 vehicles, and we plan to directly lease about the same percentage of cars as we did in Q4. Throughout the rest of 2016, Automotive gross margin should continue to increase, helped by cost reductions for Model S and improving margin on Model X as our manufacturing efficiency improves for that vehicle. By year-end, Model S gross margin should begin to approach 30% and Model X gross margin should be~25%, with continued improvement for X in 2017."