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.

For those who want to see how automotive engineering can be evolved, they need look no further than the Tesla Model S. In addition to being the first sedan to be powered fully with electricity, the Model S has managed to combine efficiency, safety, and performance in one package. It offers the highest safety ratings possible and even the longest range to be offered by an electric vehicle.

Software updates are available to ensure that the Model S is constantly made better and further updates are offered over-the-air. Because of these different qualities, Tesla’s latest offering has managed to change what the world has come to expect from a 21st century car. One advantage of the Model S is that it makes use of the brand’s very own architecture.

Specifically, it is where the battery has been placed on the floor. This results in the model having a low center of gravity while greatly lowering the rollover risk. Further, it improves not only the performance but even the handling. Since there is no need for an engine, the crumple zone is larger especially when compared to other performance sedans.

For those not familiar, this is the region of the car that absorbs the energy should a front end impact occur. The unique way that the electric drivetrain has been positioned on this model is mainly the reason why Tesla can claim that the Model S is one of the safest cars out there. As previously mentioned, having a low center of gravity means that the risk of a rollover is minimized.

That the Model S is safe has already been proven by the 5-star ratings given by both NHTSA and the Euro NCAP. Tesla revealed that in a testing conducted in the U.S., the Model S managed to set a record of having the lowest possibility of injuring occupants. It is not all about the architecture as the Model S has been fitted with a number of active safety features as standard.

Examples of such systems include lane departure warning, collision warning, blind spot detection, and automatic emergency braking. Features aimed at convenience are offered as well though most are optional. These include summon, traffic-aware cruise control, autopark, and autosteer. There is no question that the Model S is truly the safest car one can drive on the road.

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Topics: tesla, earnings

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