Despite Q2 Loss, Tesla Forecast Optimistic

Yesterday, Tesla Motors Announced that it had recorded a loss for the second quarter this year. Nevertheless, the $93 million GAAP deficit, at $0.89 per share is still better than Wall Street Analysts predicted; Thomson Reuters initially predicting a loss of $0.93 per share.

Following announcement of the figures, Tesla stock jumped in value by 3.7 percent in external trading; company investors such as Jeffries Group, Maxim Group and Needham & Company reaffirming their recommendations in the company. Barclays Capital also re-confirmed its overweight rating of Tesla stock.

Yet despite the better than expected performance and Tesla stating that it is still on track to produce 5,000 Model S orders by the end of the year, with 1,000 cars expected to be delivered during the third quarter; some analysts are concerned actual output will fall short. Theodore O’Neil at Wunderlich Securities even went officially on record, saying that he expects Tesla to deliver only around 500 Model S sedans for Q3.

Nonetheless, Tesla’s flamboyant CEO, Elon Musk is doing his best to deliver a positive message following the earnings announcement.

“We are thrilled that our customers, investors and the media have now had a chance to see for themselves just how compelling Model S is,” he said. “We are also excited to have delivered the first group of Model S cars. We continue to focus on our long term goals of increasing quality production of the Model S so that we can achieve all of our goals to deliver on our volume, cash flow and profitability commitments.”

On Wednesday Tesla also reiterated plans to begin repaying its $465 million in federal loans – of which just $33 million are left, and Tesla will draw these funds down in the next few months.

It also reportedly said that in response to a 10-plus month long Model S waiting list, it will consider increasing 2013 production from a projected 20,000 units to as many as 30,000.

In all, news reports with commentary on Tesla’s prospects have been mixed between optimistic and pessimistic.

That this company’s success would be a boon to the entire electric vehicle industry is without question, as it threatens to remain a prod to large automakers showing what a small determined start up can do.


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