Tesla Motors (TSLA) Tops Q3 EPS by 2c; Reports 5,500 Deliveries

November 5, 2013 4:04 PM EST
(Updated - November 5, 2013 4:06 PM EST)

Tesla Motors, Inc. (NASDAQ: TSLA) reported Q3 adjusted EPS of $0.12, $0.02 better than the analyst estimate of $0.10. Revenue for the quarter came in at $602.58 million versus the consensus estimate of $535.41 million.

Record 5,500 Model S deliveries.

Tesla is now producing 550 cars per week

Supercharger update:

We continue to rapidly expand the Supercharger network with 31 stations open in North America today. Our network now enables free long distance driving along the entire west coast of North America, from Vancouver to San Diego. By year-end, we expect to have a network that will allow cross country driving in the United States and a higher concentration of stations along the east coast.

We are also expanding our Supercharging network into Scandinavia and Europe. In August, Tesla opened a network of six Supercharger stations in Norway, allowing Model S owners to travel conveniently and for free across Norway’s most vital and commonly used roads and highways.

After Norway, we are putting specific emphasis on Germany where we plan to upgrade to even faster 135 kW Superchargers. By March 2014, we plan that more than half of Germany should be covered, with complete coverage by mid-2014. By the end of 2014, we expect that the entire population of the Netherlands, Switzerland, Belgium, Austria, Denmark and Luxembourg and about 90 percent of the population in England, Wales and Sweden will live within 320 km of a Supercharger station.

Q4 Outlook:

We are continuing to expand production and plan to deliver slightly under 6,000 Model S vehicles in Q4, which increases our total expected deliveries to 21,500 vehicles worldwide for 2013. ASPs are expected to be relatively flat sequentially as we continue to see a rich mix of options on incoming orders.

Model S gross margin may continue to make slight improvements over the next several quarters as we continue to drive down manufacturing costs. While we expect to achieve our target of 25% non-GAAP automotive gross margin in Q4 (assuming no contribution from ZEV credits), further progress is likely if customers continue to purchase our vehicles with a high option take rate.

R&D expenses are expected to increase sequentially by about 25% in Q4 as we accelerate product development efforts on Model X and Model S enhancements. SG&A expenses are expected to rise sequentially by about 20%, driven by the growth in our retail locations, service centers and Supercharger facilities.

We expect our non-GAAP profitability to be about consistent with Q3, with approximately 139 million fully diluted shares outstanding based on the current level of our stock price. Free cash flow is expected to be close to breakeven.

We expect to spend about $75 to $85 million on capital expenditures for a total of approximately $250 million in 2013, as we expand our factory production capability and customer support infrastructure. All these investments, funded in part by our profitable operations, position us for further expansion of our product portfolio and global growth.

We plan to share further details of our 2014 plan when we report Q4 results early next year.

For earnings history and earnings-related data on Tesla Motors, Inc. (TSLA) click here.

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