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Tesla (TSLA) Misses Q1 Earnings Estimates, Model 3 Still on Track

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Tesla Inc. (TSLA - Free Report) just released its first-quarter financial results, posting an adjusted loss of $1.97 per share and revenues of $2.7 billion.  

Currently, TSLA is a Zacks Rank #2 (Buy), but this ranking could change based on today’s results. The stock is down 0.57% to $309.00 per share in trading shortly after its earnings report was released.

Tesla:

Missed earnings estimates. The company posted earnings of -$1.97 (excluding 7 cents from non-recurring items), missing the Zacks Consensus Estimate of -$0.67.

Beat revenue estimates. The company saw revenue figures of $2.696 billion, beating our consensus estimate of $2.561 billion.

Vehicle production increased by 64% compared to a year ago, which allowed Tesla to set new quarterly records of 25,051 deliveries and $2.7 billion in GAAP revenue

Operating expenses increased sequentially as the period now reflects a full quarter of SolarCity operating expenses. Nevertheless, vehicle-related operating expenses increased only 8% sequentially despite significant Model 3 vehicle development progress.

The company said its first-half outlook remains unchanged at 47,000 to 50,000 deliveries. Tesla will provide guidance on vehicle deliveries for the second half of the year after it starts Model 3 production in July.

“Model 3 vehicle development is nearly complete as we approach the start of production,” the company said. “Release Candidate vehicles, built using production-intent tooling and processes, are being tested to assess fit and finish, to support vehicle software development and to ensure a smooth and predictable homologation process. Road testing is also underway to refine driving dynamics and ensure vehicle durability.”

Here’s a graph that looks at Tesla’s recent earnings performance history:

Tesla Inc. Price, Consensus and EPS Surprise

Tesla Inc. Price, Consensus and EPS Surprise | Tesla Inc. Quote

Tesla Inc. designs, develops, manufactures, and sells electric vehicles and stationary energy storage products. It operates primarily in the United States, China, Norway and internationally. Tesla Inc., formerly known as Tesla Motors Inc., is headquartered in Palo Alto, California.

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