===Tesla (TSLA) wins temporary approval in China for its self-driving service

Tesla  (TSLA) cleared a significant hurdle that could help it roll out its advanced driver-assistance technology in China. Authorities removed restrictions on Tesla’s China-made cars after passing the country’s data security requirements. The move raises the prospect that Tesla’s driver-assistance software will soon be available in the country.

• Tesla stock soared on Monday following reports that CEO Elon Musk won Chinese approval to deploy the automaker’s Full Self-Driving (FSD) autonomous software on the mainland.
• As was first reported by the Wall Street Journal, people familiar with the matter said that officials told Tesla that they had tentatively approved FSD in the country during Musk’s 24-hour visit to Beijing over the weekend.
• Separately, Bloomberg earlier reported that Tesla will use Chinese tech company Baidu’s street-level mapping data to power FSD. Tesla had been previously using Baidu’s mapping data for satellite navigation in its cars. Working with a Chinese company helped with regulatory approval as data privacy and security risks are minimized, the reports said.

TSLA +115% YTD

• TSLA is in the NASDAQ 100 but not in the S&P 500

The fund that Simons founded in 1982 added 3.3 million shares of Tesla in the 3-month period ended Dec. 31

James Simons, founder of Renaissance Technologies.

Renaissance Technologies, added more than 3 million shares of Tesla to its holdings in the fourth quarter of last year, as the electric-vehicle maker’s shares catapulted higher, according to public filings.

The hedge fund founded by James Simons, considered the premiere quantitative-driven investor, owned 3.9 million shares of Tesla at the end of Dec. 31, with the company’s stake in Renaissance’s portfolio jumping from 0.1% in the prior quarterly period to 1.3%, according to file-tracking site Whalewisdom.

For his efforts, he ranks No. 21 on the Forbes list of the wealthy, with a net worth of $21.6 billion.

Renaissance’s main investment offering is the flagship Medallion Fund, which has generated a 39% average annual return from 1988 to 2018, that is despite rich fees, which currently include a 5% management and 44% performance fees.

The Medallion Fund limits its assets to roughly $10 billion and is only available to Renaissance employees.

This week's biggest % winners & losers : Jan 27 - 31, 20 (wk 5)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: AKRX (1.53 +16.79%), RETA (218.79 +13.08%), CDNA (24.16 +11.49%), ESPR (54.08 +10.14%), TNDM (76.04 +10.04%), TRHC (58.07 +9.55%)
• Materials: SMG (122.74 +12.98%)
• Industrials: NAV (36.62 +43.21%), CMPR (119.63 +13.91%)
• Consumer Discretionary: DLPH (15.34 +56.21%), ADNT (25.71 +26.84%), LAUR (20.84 +18.07%), DESP (14.81 +15.97%), TSLA (650.57 +15.18%), PENN (29.83 +14.91%), LB (23.16 +11.67%)
• Financials: MOSC (16.66 +42.15%), SC (26.62 +13.32%)

This week's top % losers

• Industrials: BGG (3.67 -29.96%), EGLE (3.25 -19.95%)
• Consumer Discretionary: ASNA (4.4 -23.21%), MIK (4.93 -20.23%), SKY (28.75 -20.07%), TUP (6.26 -19.43%), NIO (3.78 -18.88%)
• Information Technology: EXTR (5.9 -23.28%), INSG (6.71 -22.43%), CMTL (28.91 -21.97%), AAOI (11.3 -19.05%)
• Energy: MMLP (3.04 -21.85%), STNG (23.34 -19.57%), NINE (4.84 -19.33%), FRO (8.76 -18.96%)

-=Tesla (TSLA) reported earnings on Wed 29 Jan 20 (a/h)

Tesla beats by $1.53, beats on revs; guides FY20 deliveries above consensus

Reports Q4 (Dec) earnings of $2.14 per share, excluding non-recurring items, $1.53 better than the S&P Capital IQ Consensus of $0.61; revenues rose 2.2% year/year to $7.38 bln vs the $7.05 bln S&P Capital IQ Consensus. GAAP gross profit of $4.1B remained essentially flat in 2019 compared to 2018.

Volume growth and successful cost reduction efforts were offset by normalization of ASP, mix shift towards Model 3 and a higher lease mix. Sequentially, GAAP gross margin remained relatively flat in Q4 at 18.8% vs. 18.6% consensus, while we ramped Model 3 production at Gigafactory Shanghai.

Auto gross margin -30 bps QoQ to 22.5%.

For full year 2020, vehicle deliveries should comfortably exceed 500,000 units vs. ests near 475K. Due to ramp of Model 3 in Shanghai and Model Y in Fremont, production will likely outpace deliveries this year. Both solar and storage deployments should grow at least 50% in 2020.

Reiterates positive GAAP net income and FCF with temporary exceptions due to the lunch of new products

Production ramp of Model Y in Fremont has begun, ahead of schedule.

Model 3 production in Shanghai is continuing to ramp while Model Y production in Shanghai will begin in 2021. We are planning to produce limited volumes of Tesla Semi this year.

Earnings this week : Jan 27 - 31, 20 (wk 5)

Monday (Jan 27)

• Morning: ARLP ARNC BOH DHI HMST NWBI SALT S
• Afternoon: ASH BRO CR ELS FFIV GGG HTLF IBTX JJSF JNPR LRN NBTB PKI RMBS SANM SSB TCF WSBC WHR

Tuesday (Jan 28)

• Morning: MMM AOS ALV CIT FBP FBC GPK HOG HCA LEA LMT MKC NUE PCAR PNR PFE PHG PII POL BPOP PHM SAP UTX XRX
• Afternoon: AMD ALK AAPL BXP CHRW CNI CMRE EBAY EQR FCF FHB MTSI MXIM MRCY MSTR MKSI MINI NVR OSIS PFG RGA RXN SLGN SKY SBUX SYK TRMK UMBF WRB XLNX

Wednesday (Jan 29)

• Morning: ANTM T ADP AVY BA EAT CP GIB CVLT GLW DOW DT EVR EXTR FCFS GD GE HES IR IVZ KNX LFUS MPC MKTX MA MCD MPLX NDAQ NYCB NSC NVS OSK PGR PB ROK ROL RES SC SNDR SMG SILC SLAB SWK SXC TROV TEL TXT
• Wednesday (Jan 29)
• Afternoon: AGNC ALGN ALGT AMP ADM AZPN AXS AX BDN CACI CLS CMPR CRUS CNMD CLB CREE DLB DRE ENVA ESS FB FBHS HOLX IEX ILMN ISBC KLIC LRCX LSTR LVS LM LLNW MLNX MTH MEOH MSFT MAA MDLZ MUSA EGOV PKG PYPL QRVO SEIC NOW TSLA TTEK URI VAR

Thursday (Jan 30)

• Morning: ALXN ADS FLWS MO ABC APO APTV AXTA BIIB BX BGG BC CRS CMS CNXM CNX KO CTVA CFR DHR DOV DD LLY EPD BEN GWW HSY IP KIM KEX LAZ MMP MMC MDC MTOR MIXT MNRO MSCI MUR NTCT NOC PH DGX RTN RFP ROP RDS.A SHW SPB SF TMO TSCO TFC UBSI UPS VLO VLY VZ WEC WCC WRK XEL
• Afternoon: AMZN AMGN AIV ARCB AJG BZH EPAY CPT CVCO CE CACC DECK EMN EW EA NVST FII FICO FLEX HA HAYN LEVI LPLA MATW MTX MITK NFG NATI OTEX POWI PFPT RMD RHI SIGI SKYW X VRTX V WDC

Friday (Jan 31) 

• Morning: ADNT AON BERY BAH BR CAT CHTR CVX CHD CL XOM GNTX HTH HON IDXX ITW IMO JCI KKR LYB MAN PSX PSXP PFS SBSI VRTS WY WETF

MONDAY

Arconic, DR Horton, Sprint, F5 Networks, Whirlpool

TUESDAY

3M, Lockheed Martin, LVMH, Pfizer, United Tech, Harley-Davidson, Xerox, PulteGroup, Advanced Micro, Apple, Starbucks, Alaska Air, eBay, Equity Residential

WEDNESDAY

AT&T, Boeing, Dow, General Electric, Mastercard, McDonald's, Novartis, Anthem, Corning, General Dynamics, Las Vegas Sands, Facebook, Microsoft, Mondelez, PayPal, Samsung Electronics, Tesla, United Rentals

THURSDAY

Altria, Biogen, Coca-Cola, Deutsche Bank, Eli Lilly, Royal Dutch Shell, Alexion Pharma, UPS, Verizon, Nintendo, H&M Hennes & Mauritz, Hershey, Blackstone, Northrop Grumman, Amazon, Amgen, Visa, Levi Strauss, Electronic Arts

FRIDAY

Caterpillar, Charter Comm, Chevron, Colgate-Palmolive, Exxon Mobil, Philips 66, Johnson Controls, Honeywell

Notable earnings reports:

• Ashland (NYSE:ASH), Rambus (NASDAQ:RMBS), Juniper Networks (NYSE:JNPR) and F5 Networks (NASDAQ:FFIV) on January 27; Apple (AAPL), eBay (NASDAQ:EBAY), AMD (NASDAQ:AMD), Lockheed Martin (NYSE:LMT), Pfizer (NYSE:PFE) and Starbucks (NASDAQ:SBUX) on Janury 28; 
• Facebook (FB), Microsoft (MSFT), McDonald's (NYSE:MCD), Boeing (BA), AT&T (NYSE:T), Tesla (TSLA), Cree (NASDAQ:CREE), Mastercard (NYSE:MA), Mondelez International (NASDAQ:MDLZ) and PayPal (NASDAQ:PYPL) on January 29; 
• Altria (MO), Coca-Cola (NYSE:KO), DuPont (NYSE:DD), Raytheon (NYSE:RTN), Verizon (NYSE:VZ), Visa (NYSE:V), Electronic Arts (NASDAQ:EA), Nintendo (OTCPK:NTDOY), Biogen (NASDAQ:BIIB), Amazon (AMZN) and UPS (UPS) on January 30; 
• Caterpillar (CAT), Honeywell (NYSE:HON), Chevron (NYSE:CVX) and Exxon Mobil (XOM) on January 31.

=Tesla (TSLA) downgraded to Underweight from Equal-Weight at Morgan Stanley

This week's biggest % winners & losers : Oct 21 - 25, 19 (wk 43)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: BIIB (288.04 +30.89%), RIGL (2.1 +28.44%), ANIK (73.36 +26.77%), DVAX (5.01 +22.79%), LXRX (3.87 +20.94%)
• Industrials: UFPI (50.26 +21.55%)
• Consumer Discretionary: PETS (25.81 +32.77%), TSLA (328.13 +27.7%), BJRI (43.35 +23.93%), PDD (40.84 +22.35%), STMP (92.01 +21.75%)
• Information Technology: TWTR(30.30  -22.29%) CISN (10.09 +20.26%), FSCT (30.59 +20.2%)
• Financials: ONDK (4.46 +25.99%)
• Energy: QEP (3.65 +34.69%), TK (5.53 +29.21%), CHK (1.56 +20.93%)

This week's top % losers

• Healthcare: OPK (1.44 -31.26%), TXMD (2.84 -22.51%), VCRA (19.12 -20.96%), MGNX (8.71 -20.82%)
• Industrials: REZI (9.36 -36.37%), GVA (26.25 -25.64%), TNET (50.31 -16.5%)
• Consumer Discretionary: SERV (42.2 -23.94%), HAS (96.01 -21.28%), SIX (43.16 -16%)
• Information Technology: NOK (3.78 -27.31%), CTS (27.89 -16.99%), NTGR (26.55 -16.59%), MXL (18.73 -16.31%)
• Utilities: PCG (5.00 -35.57%)

Tesla (TSLA) reported earnings on Wed 23 Oct 19 (a/h)

** charts after earnings **

 

Tesla beats by $2.19, reports GAAP profitability and postive FCF, upside to gross margin; misses on revs

Reports Q3 (Sep) earnings of $1.91 per share, $2.19 better than the S&P Capital IQ Consensus of ($0.28); revenues fell 7.6% year/year to $6.3 bln vs the $6.48 bln S&P Capital IQ Consensus.  GAAP EPS $0.80 vs. ($0.23) consensus.

Compared to Q3 of 2018, the percentage of leased vehicles has tripled and alone has impacted revenue by the majority of the YoY decrease. Model 3 mix has increased while we have taken actions leading to the reduction of the ASP of our products. These ASP reductions are particularly impacted by the launch of the Standard Range trims of Model 3 and pricing actions earlier in the year. We are positioned to accelerate our growth further through Gigafactory Shanghai, Model Y and also through increasing build rates on our existing production lines. These capacity increases will allow for higher total vehicle deliveries and associated revenue. We also expect to gradually release nearly $500M of accumulated deferred revenue tied to Autopilot and Full Self Driving features.

GAAP Automotive gross margin improved by 393bp QoQ to 22.8%, well above estimates (improved by 366bp QoQ excluding regulatory credits). Margin was impacted in part due to fundamental improvements in our operating efficiency, including higher fixed cost absorption, reductions in manufacturing and material costs and continued improvements in vehicle quality and in part due to Smart Summon-related deferred revenue recognition, FX and other non-recurring items. Improved gross profit combined with a decline in operating expenses resulted in material improvement of GAAP net income.

While total volumes are expected to grow by ~50% in 2019, this year our focus has been cost control and preparing for our next phase of growth

Quarter end cash and cash equivalents increased to $5.3B, driven by positive free cash flow of $371M.

Gigafactory Shanghai ahead of schedule, trial production started

Model Y ahead of schedule, production expected by summer 2020

Tesla (TSLA) reported earnings on Wed 24 July 2019 (a/h)

** charts before earnings **

 

** charts after earnings **

Tesla misses by $0.76, misses on revs; reaffirms Q3 GAAP profitability, expects positive quarterly FCF, cuts cap-ex, sees production consistent with prior outlook

Reports Q2 (Jun) loss of $1.12 per share, excluding non-recurring items, $0.76 worse than the S&P Capital IQ Consensus of ($0.36); revenues rose 58.7% year/year to $6.35 bln vs the $6.44 bln S&P Capital IQ Consensus. 

Generated $614 million of free cash flow (operating cash flow less capex) in Q2. Combined with our public offering of equity and convertible bonds (net proceeds of $2.4 billion), we ended the quarter with $5.0 billion of cash and cash equivalents, the highest level in Tesla's history. This level of liquidity puts us in a comfortable position as we prepare to launch Model 3 production in China and Model Y production in the US.

Auto gross margin -130 bps to 18.9% in spite of reductions in vehicle ASP and lower regulatory credit revenue; excluding regulatory credit revenue, automotive gross margin improved by ~200bp

Outlook: This quarter, we are simplifying our approach to guidance. We are most focused on expanding our manufacturing footprint in new regions, launching new products and continuing to improve the customer experience, while generating and using cash sustainably. Local production and improved utilization of existing factories is essential to be cost competitive in each region. We remain on track to launch local production of the Model 3 in China by the end of the year and Model Y in Fremont by fall of 2020. We are also accelerating our European Gigafactory efforts and are hoping to finalize a location choice in the coming quarters. We are working to increase our deliveries sequentially and annually, with some expected fluctuations from seasonality. This is consistent with our previous guidance of 360,000 to 400,000 vehicle deliveries this year. Additionally, we expect positive quarterly free cash flow, with possible temporary exceptions, particularly around the launch and ramp of new products. We believe our business has grown to the point of being self-funding. We continue to aim for positive GAAP net income in Q3 and the following quarters, although continuous volume growth, capacity expansion and cash generation will remain the main focus. Our 2019 capex is expected to be about $1.5 to $2.0 billion, a reduction from prior guidance. We continue to find opportunities to improve capital efficiency and shift cash outflows to future periods. This estimate includes the development of our main projects, on the timelines referenced, and to expand our Supercharger and service networks.

-=TSLA : company to cut 7% of workforce, the road ahead 'very difficult'

• CEO Elon Musk announced plans in a letter to cut co's full-time employee headcount by approx. 7%; these cuts, says Musk, must be made while increasing the production rate of Model 3 vehicles and improving manufacturing and engineering, and co's road ahead is projected to be "very difficult"; preliminary Q4 figures indicate that co made a GAAP profit in the quarter, but a lesser profit than that realized in Q3; Musk says that co needs to reach more customers who are able to afford its vehicles, especially with changes to tax credits ahead.
• The least-expensive version of the Model 3 now available costs $44,000. Mr. Musk said in a companywide email that he wanted the lowest-priced Model 3 to sell for $35,000.
• The cuts, which could put more than 3,000 people out of work, follow a 9 percent reduction in Tesla’s staff in June. Another of Mr. Musk’s companies, the privately held rocket maker SpaceX, said this month that it would shrink its work force by about 10 percent.

As Tesla struggled last year to cope with a Model 3 production and delivery process that Mr. Musk has described as “hell,” his behavior created distractions for the company.

In August, he wrote in a short, cryptic post on Twitter that he was considering taking Tesla private and had “funding secured,” surprising board members and driving up the stock price.

The Securities and Exchange Commission later sued Mr. Musk in federal court, saying he had misled investors. He settled with the agency, agreeing to pay a $20 million fine and to step aside as chairman for three years.

Tesla (TSLA) reported earnings on Wed 24 Oct 2018 (a/h)

** charts before earnings **

 

** charts after earnings **

 

• the following day

Tesla surges following blow-out results: Profitability secured

Pretty much everyone thought Elon Musk was crazy when he guided for profitability in Q3 and Q4 but he handily delivered this afternoon. The company reported Q3 GAAP net income of $312 million, well above estimates for a ($169) million net loss and guidance for profitability. Free cash flow was $881M supported by operating cash flow of $1.4B.

Model 3 was the best-selling car in the US in terms of revenue and the 5th best-selling car in terms of volume.

The electric car maker announced an adjusted profit of $2.90 per share on revenue of $6.82 billion during its fiscal third quarter, blowing past the 3 cents per share loss and $6.052 billion in revenue expected in a consensus of analysts by FactSet.

In the same quarter a year ago, Tesla lost $2.92 per share on $2.985 billion in revenue.

Ramped-up production of the Model 3 paved the way for what Tesla Chief Executive Elon Musk vowed in an April tweet would be a profitable quarter. The company repeated that claim in its most recent letter to shareholders in August.

Tesla said it delivered 56,065 of the mid-size luxury vehicles to customers, or about 4,300 per week.

The Palo Alto, Calif.-based company reported $881 million in free cash flow, and $1.4 billion in operating cash flow.

Momentum had been growing in anticipation of the results, which were hastily announced late Monday, suggesting a good quarter was expected. The company usually sets the date for financial results weeks in advance, and its Q3 news typically comes in early November.

Longtime Tesla critic and short seller Andrew Left, who had nearly a five-year short position on the stock at Citron Research, reversed course on Tuesday, citing the success of the mid-size luxury Model 3 and the larger Model S.

“While the media has been focused on Elon Musk’s eccentric, outlandish and at times offensive behavior, it has failed to notice the legitimate disruption of the auto industry that is currently being DOMINATED by Tesla,” Left wrote in his note, which helped send Tesla shares up nearly 13% on Tuesday.

“TSLA is not just pulling customers from BMW and Mercedes but also from Toyota and Honda,” said Left, who sued Tesla, and Musk, alleging stock manipulation, last month.

Indeed, Tesla earlier this month said it produced 80,142 cars in the calendar third quarter—50% more than its previous high in Q2 and triple its production volume in the same quarter a year ago.

Still, short sellers and other Tesla skeptics aren’t completely sold the company has the long-term sales to justify its lofty stock value.

They point to the occasional Musk sideshow, culminating in his Aug. 7 tweet that he had funding to take the company private at $420 a share. This led to Musk giving up his chairmanship as part of a $40 million settlement with Securities and Exchange Commission. A subsequent stunt on a podcast, in which Musk apparently smoked a joint, didn’t help matters, or his image, in September.

Tesla (TSLA) shares fall after Musk mocks SEC on Twitter

(Reuters) - Shares of Tesla Inc fell as much as 5 percent on Friday, after Chief Executive Elon Musk stirred nerves about the settlement of his securities fraud lawsuit by mocking the U.S. Securities and Exchange Commission on Twitter.

The tweet calling the SEC the "Shortseller Enrichment Commission" came just hours after a federal judge ordered Musk and the SEC to write a letter justifying a settlement which allows him to remain in charge at Tesla.

"Just want to [sic] that the Shortseller Enrichment Commission is doing incredible work," Musk, a frequent critic of investors betting against the electric car company said in the tweet. "And the name change is so on point!"

The electric carmaker's shares plunged last week after the SEC accused Musk, 47, of fraud over "false and misleading" tweets on Aug. 7 that promised to take Tesla private and said funding had been secured.

The lawsuit threatened to pull Tesla and Musk into a long drawn-out fight that could have undermined the company's operations and ability to raise capital.

In the settlement that was announced over the weekend, Tesla and Musk instead agreed to pay $20 million each to the regulator while the billionaire - also a large Tesla shareholder - would step down as chairman but continue as CEO.

Tesla (TSLA) : CEO Elon Musk charged by SEC with securities fraud

 

The Securities and Exchange Commission has asked a federal court to oust Musk as Tesla's chairman and CEO, alleging he committed securities fraud with false statements about plans to take the company private.

• CEO Elon Musk charged by SEC with securities fraud for misleading investors with his flurry-inducing take-private Tweets on August 7. 
• Mr. Musk and the SEC were reportedly close to reaching a no-guilt settlement that would have barred him from being chairman for two years, but Mr. Musk backed out at the last minute.

Note Mon Oct 1, 2018: Elon Musk agreed to a settlement with the SEC for his "taking private" tweet in August, and will step down as Chairman for at least three years.

=Tesla (TSLA) reported earnings on Wed 1 Nov 2017 (a/h)

Tesla misses by $0.63, beats on revs; pushes out Model 3 production tgt of 5K/week one quarter 

• Reports Q3 (Sep) loss of $2.92 per share, excluding non-recurring items, $0.63 worse than the Capital IQ Consensus of ($2.29); revenues rose 29.9% year/year to $2.98 bln vs the $2.94 bln Capital IQ Consensus. 
• "While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear. Based on what we know now, we currently expect to achieve a production rate of 5,000 Model 3 vehicles per week by late Q1 2018 (from end of 2017 previously), recognizing that our production growth rate is like a stepped exponential, so there can be large forward jumps from one week to the next. We will provide an update when we announce Q4 production and delivery numbers in the first few days of January. With respect to the timing for producing 10,000 units per week, it has always been our intention to implement that capacity addition after we have achieved a 5,000 per week run rate. That will enable us to make the next generation of automation even better while making our capex spend significantly more efficient.
• Demand for Model 3 is not going to be a constraint for quite a long time. The global net reservations for Model 3 continued to grow significantly in Q3.
• In Q3, we delivered 25,915 Model S and Model X vehicles and 222 Model 3 vehicles, for a total of 26,137 deliveries. Combined Model S and Model X deliveries in Q3 grew 18% globally compared to Q2 and 4.5% versus the same quarter one year ago. Consequently, both Model S and Model X gained further market share in the US luxury vehicle market. In addition, our used vehicle sales more than doubled from the prior quarter.
• Model S and X combined net orders in Q3 also hit an all-time record in our North American, European and Asian markets individually, driven primarily by increased awareness of Tesla from the Model 3 launch and the addition of new stores internationally.
• Based on the recent acceleration in order growth, we now expect that Model S and Model X are on pace for about 100,000 deliveries in 2017, an increase of 30% compared to 2016. Notwithstanding these increased deliveries, we plan to produce about 10% fewer Model S and Model X in Q4 compared to Q3 because of the reallocation of some of the manufacturing workforce towards Model 3 production. As a result, inventory level of finished Model S and X vehicles should continue to decline. We expect Model 3 non-GAAP gross margin to reach breakeven by end of Q4, because of increased capacity utilization, and it should improve rapidly in 2018 to our target of 25%. Our recent production challenges may affect short-term costs, but they have no impact on our 25% gross margin target, since there has been no change to our projections for material, labor and overhead costs per vehicle. Due to a higher mix of temporarily lower margin Model 3 deliveries in Q4 compared to Q3, we expect non-GAAP automotive gross margin to temporarily decline slightly in Q4 to about 15% and then recover starting in Q1. Gross profit is expected to grow more than operating costs in Q4 compared to Q3, while operating costs are expected to be flat to up slightly in Q4. Between cash on hand, future cash flows and available lines of credit, we believe that we are well capitalized to accommodate the revised ramp of Model 3 production to 5,000 per week. Upon achieving this production level, we expect to generate significant cash flows from operating activities. Capital expenditures are expected to be approximately $1 billion in Q4, driven largely by milestone payments on Model 3 production equipment, as well as Gigafactory 1, and further expansion of stores, service centers, delivery hubs and the Supercharger network...
• we believe that we are well capitalized to accommodate the revised ramp of Model 3 production to 5,000 per week. Upon achieving this production level, we expect to generate significant cash flows from operating activities." 

=Tesla (TSLA) reported earnings on Wed 2 Aug 2017 (a/h)

Tesla (TSLA) reported second-quarter earnings after the market close that beat the consensus estimate on revenue and earnings.

The electric-car maker reported revenue $2.79 billion, beating the consensus estimate of $2.51 billion. It reported an adjusted loss of $1.33, beating the consensus estimate of a $1.82 loss.

Tesla stock was up 3%, near $336 during after-hours trading in the stock market today. The stock is up 53% this year.

Tesla is "confident" it can produce just over 1,500 vehicles in the third quarter and achieve a run rate of 5,000 vehicles per week by the end of 2017. It continues to plan on increasing Model 3 production to 10,000 vehicles per week at some point in 2018. Tesla also said it expects Model S and Model X deliveries to increase in the second half of this year, vs. the first half.

"While delivering the first Model 3 cars was a major company milestone, we are now focused on the critical steps to ramp Model 3 production," Tesla said in the earnings announcement. "We remain confident in our plans and look forward to the upcoming unveiling of the next exciting addition to our portfolio of electric vehicles – Semi Truck."

On Friday, Tesla handed over the first 30 production Model 3 sedans to customers at its Fremont, Calif., factory, as it begins to significantly ramp production. The Model 3 is Tesla's first car for the mass market, with a price tag starting at $35,000, moving beyond its niche as a provider of luxury vehicles that typically sell for more than $100,000. At the high end, the Model 3 goes for $59,000.

Tesla expects Model 3 production of 100 in August, 1,500 in September and 20,000 in December, not including the Model S and X production.

Tesla said it is averaging about 1,800 Model 3 orders per day since its handover event on Friday. Deliveries to non-employees will begin in the fourth quarter, the company said.

Tesla earlier this week said reservations for the Model 3 have grown to more than 500,000, up from the 373,000 that Tesla previously reported the spring of 2016.

Tesla (TSLA) reported earnings on Wed 3 May 2017 (a/h)

** charts after earnings **

 

DETROIT (AP) -- Electric car maker Tesla's first-quarter loss widened 17 percent to $330 million as it ramped up spending ahead of the launch of its Model 3 sedan and its growing solar energy business.

The loss equaled $2.04 per share, compared to a loss of $2.13 a year ago. Excluding one-time items, Tesla reported a loss of $1.33 per share, which was bigger than Wall Street expected. Analysts polled by FactSet forecast a loss of $1.23 per share.

Revenue more than doubled to $2.7 billion from $1.15 billion as Tesla delivered more vehicles in the quarter and saw big increases in its energy generation and storage business after its acquisition of solar panel maker SolarCity Corp. late last year.

Palo Alto, California-based Tesla said it remains on track to start production of the Model 3 in July. It's also working on several other vehicles, which helps explain its 77 percent increase in research and development spending in the first quarter.

CEO Elon Musk said the company plans to show a prototype semi-truck in September that is partially made from Model 3 parts. It is also planning a Model Y small SUV in late 2019 or 2020.

"I'm absolutely confident that electric vehicles will occupy every segment, without exception," Musk said.

The company's goal to move beyond its current position as a niche maker of luxury cars largely rests on the Model 3. The lower-cost model, which will start around $35,000, is set to go on sale later this year. Musk wouldn't say how many people have put down a refundable $1,000 deposit for a Model 3, but said "reservations continue to climb week after week." Tesla had 373,000 reservations as of last May.

Tesla said it is preparing its factory in Fremont, California, to produce 5,000 Model 3 sedans per week sometime before the end of 2017 and 10,000 per week at some point in 2018. Musk said the Model 3 was designed to be much less complicated than the company's Model X SUV and the company has a better supply team in place, so he's not anticipating the sorts of delays that happened with previous Tesla models.

"As far as we know there are no issues," he said.

Tesla is also expanding its network of stores and charging stations to meet anticipated demand. The company said it plans to open 100 retail and service locations worldwide this year, including its first stores in Dubai and South Korea. It also plans to double the number of fast-charging Supercharger stations to 10,000.

Tesla (TSLA) reported earnings on Wed 22 Feb 2017 (a/h)

** charts after earnings **

 

Tesla reports wide Q4 loss, beats revenue expectations

In its first earnings since merging with SolarCity, Tesla continues to burn through cash as it reported a wider-than-expected loss Wednesday.

For the fourth quarter ending Dec. 31, the Palo Alto-based automaker reported a loss of 69 cents per share on $2.28 billion versus what analysts expected — a loss of 53 cents a share on revenue of $2.2 billion.

Though it beat Wall Street's revenue expectations, Palo Alto-based Tesla (Nasdaq: TSLA) showed higher expenses both in the fourth quarter and for all of 2016.

The earnings are the first financials released since Tesla shareholders approved the company's acquisition of San Mateo-based SolarCity, which was a $2.6 billion merger of two companies that have influence by Elon Musk.

Since the deal, around $85 million in solar-related operating expenses were added. There was also a leap on research-and-development expenses, which rose 29 percent year over year this quarter while administrative expenses jumped 58 percent year over year.

In the earnings report, Tesla also gave an update on the highly anticipated Model 3, which the company said will achieve "volume production" by September.

To date, Tesla has not hit its forecast for deliveries, although last year it came close, predicting 80,000 to 90,000 cars and delivering a little under 76,300.

Tesla's ambitious goal of producing half a million cars by 2018 largely hinges on the success of the Model 3, which is the company's first mainstream-affordable car option by the car makers at $35,000.