Tesla Motors is expected to post lower earning in first quarter of 2014

Article by Christian A., on May 8, 2014

Analysts are expecting Tesla Motors Inc. to post lower earnings in the first quarter of 2014 as it sales were hit by the decline of clean-car credit sales in California as well as by constraints in battery supply. According to the average estimate of 10 analysts polled by Bloomberg, Tesla may log earnings of 7 cents a share, excluding some items.

Tesla earned 12 cents a share on the same basis in the same period in 2013, boosted by higher sales of California zero-emission vehicle credit and savings from its early repayment of a federal loan. Analysts, however, expect Tesla to post a loss using GAAP as basis.

On that basis, Tesla managed to cut its net loss to $74 million in 2013 from $396 million in 2012. The carmaker also saw its revenues surge 387 percent to $2 billion in 2013 from $413 million in 2012. That surge is not expected in the first quarter of 2014.

The electric car maker just started selling its vehicles in China in April, which means any sales in the country won’t be included in its first-quarter results. Analysts still expect Tesla to post a sales gain in the first three months of 2014, although it would not top the record 6,892 set in the fourth quarter of 2013.

Craig Irwin, an analyst with Wedbush Securities, quipped that constraints in battery supplies and 1,000 cars being shipped to China will keep tesla from setting another sales record.

Tesla is planning to hike the output of its Model S by 56 percent and boost its sales in China to a figure similar to that in the United States by as early as 2015. Irwin, as well as Barclays’s Brian Johnson and Robert W. Baird’s Ben Kallo, remarked that gauging demand for Tesla vehicles in China is critical.

Kallo quipped that as he expects shipments of Tesla Model S to China will rise quickly following its initial launch last month.

Topics: tesla, earnings

If you liked the article, share on:

Comments

Recommended

Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries