Tesla Earnings Brief: What You Need To Know

The elite electric car manufacturer Tesla Motors Inc (NASDAQ:TSLA) is set to report its 1Q earnings at the market close on Wednesday, May 6. According to the Wall Street Journal, the consensus among analysts’ is for a quarterly operating loss in revenue of $1.04 Billion or $(0.50)/share. Since the end of the first quarter, shares of Tesla Motors stock have surged over 22% with a 2% bump yesterday after positive comments from Credit Suisse and a $290 price target.

Analyst Comments

Analyst Dan Galves of Credit Suisse has an Outperform rating on the stock and had the following comments.

“We believe recent improvements to Tesla products have expanded the addressable market by approximately 75% and will drive incremental demand.”

“We are confident in Q2 and Full-year volume guidance and look forward to the newly expanded addressable market doubling again on Model X launch,” the analyst incrementally added.”

Future Opportunities

Tesla Motors has also recently introduced a grid based battery pack along with battery storage for in home use. According to a recent press release from PR Newswire, Tesla Motors is partnering up with Sunrun to develop renewable energy resources for the home.

More from the official press release:

“Sunrun, the largest dedicated residential solar company in the U.S., today announced its collaboration with Tesla to expand access to renewable energy storage systems for homeowners across the country. As part of the agreement, AEE Solar, the leading nationwide distributor of solar products and a subsidiary of Sunrun will add Tesla’s recently announced Powerwall Home Battery to its line of storage offerings sold for use in homes.”

One other aspect of Tesla Motors business on which to remain vigilant is the European distribution market. A strong dollar as of late will be sure to put pressure on their margins. Could this lead to a price hike in Europe to compensate for the negative impact of the strong dollar?

Final Thoughts

On the surface, Tesla Motors sure looks to be making the right turns for future business innovations and ultimately draw more attention from a wide variety of consumers. However, at this point in time in remains more of a “bull versus bear” story and until Tesla Motors can post solid numbers and exceed delivery expectations it will be difficult to trade the stock successfully.