Tesla Motors Inc. (NASDAQ: TSLA) reported $0.11 in earnings per share in the second quarter beating the market estimates of $0.04 per share. S&P Capital IQ’s Efraim Levy and Unit Economics Founder and CEO, Nathan Weiss, discussed the electric car maker’s earnings and the outlook for the year with Cory Johnson on Bloomberg TV’s “Taking Stock.”
Levy said that not only had Tesla Motors Inc. (NASDAQ: TSLA) outperformed S&P Capital IQ’s forecast of 7 cents earnings per share, but even the deliveries were a little above expectations.
“They had good news. They announced the Gigafactory deal with Panasonic. I would still like more details on that. And China is at the early stages of growth. I think that’s going to be an important area of growth. Basically, it is steady as she goes that they are executing on the plan,” he added.
While Weiss agreed that the second quarter had been good for Tesla Motors Inc. (NASDAQ: TSLA), he feels that 7,800 cars guidance for the next quarter is incorrect. The company targets 35,000 deliveries in the current year, which leaves 14,000 deliveries for the last quarter, which he believes is a risk.
Talking about the Tesla Motors Inc. (NASDAQ: TSLA)’s new vehicle, Model X, Levy told that there was no information shared about it, but the company is making the investments. However, only actual deliveries will bring any clarity.
While the company has revealed, in a press release, that it had begun work on the Gigafactory at a potential site in Reno, Weiss said that it was reported that Tesla Motors Inc. (NASDAQ: TSLA) was still considering California, where they don’t have the required environmental permits.
Levy, however, is of the opinion that currently the key priority for Tesla Motors Inc. (NASDAQ: TSLA) is ensuring that they have a steady supply of fuel cells, to avoid backlogs or disruptions that could hamper their production to meet their backlogs. As per the company’s press release the backlog was increasing. He considers that company will have to produce more than required cars in the quarter, given the reduction in production in the next quarter and the expansion plan in China.