Tesla's Earnings and Guidance on Fire!

Cars and Drivers

Published: February 19, 2014 4:16 pm

Tesla Motors Inc. (NASDAQ: TSLA) has been a stock on fire. Now we have the Elon Musk earnings report that comes with very strong production guidance for 2014. The electric car maker reported earnings at $0.33 per share prior to items, above the consensus estimate of $0.21 per share.

The sales figures looked a tad light at $616 million versus $638 million expected. Tesla also said that it sold and delivered a record 6,892 cars in the last quarter. The gross margin was also about 25% in the quarter, and are expected to grow in 2014.

Guidance shows that Tesla now expects to build some 35,000 Model S vehicles in 2014. The translation is some 55% vehicle delivery growth this year. Musk is also targeting for Tesla to have 28% auto gross margin by the fourth quarter.

By the end of 2014, Tesla expects to be able to increase production to about 1,000 cars per week.

Tesla shares closed down 5% ($10.13 lower) at $193.57, but the stock is now up 10% ($19+) at $212.25 or so in the after-hours trading session. For pre-earnings volatility trading, Tesla’s options would have cost close to $23 for the at-the-money put and call combined.

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