After the remarkable launch of the Model 3, Tesla (NASDAQ:TSLA) was set to disclose its first quarter earnings report and it would probably do it well this time.
Tesla reported a total of 14,820 deliveries of cars and more than 400,000 pre-orders at $1,000 per slot of the mass market sedan, Model 3.During the last quarter of 2015, it has delivered 17,400 cars, but compared to the 10,045 deliveries in the first quarter of 2015, it has inched up significantly.
The revenue of the firm could probably advanceby 45 percent to $1.6 billion from January to March after the 48 percent increase of deliveries.As Teslaaims to reach its full year guidance of 80,000 to 90,000 new vehicles, Tesla may just report $1.61 billion of revenue, away from the posted $1.10 billion a year ago.
This could be a minimal sign of moving away from the disappointments raised after the Model X production and deliveries. A number of customers reported several concerns on the new SUV before, apart from the revealed parts shortages.
These figures aren’t an assurance of a bullish tone for the automotive and energy company. However, the company has somehow provided a more optimistic view after the Model X production sentiments through the Model 3.
By the end of 2017, Model 3 will be available in the market at $35,000. The reservations on the model 3 has begun before March since it is almost half the price of the Tesla Model S which cost $75,000.The Model 3 can be counted as well as an environment friendly option among the other cars nowadays. Surely, Tesla must not want to repeat its own history in terms of sales and production.
The company is expected to tackle its cash burn on its earnings report. Rest assured, investors would be keen on the ability of the firm to boost profit before 2016 ends and if it can live up to its promise to be net cash flow positive for this year. It has not been confirmed yet, but the company is expected to finance its investments without a capital raise.In 2015, Tesla had $1.2 billion in cash, lesser than the company’s annual capital expenditure budget
For this quarter, Tesla may disclose an adjusted loss of 58 cents per share, comparatively higher than the adjusted loss of 36 cents last year. On a larger scale, the automotive firm may end with an adjusted loss of 52 cents per share taking into consideration roughly 200 estimates.
Lately, Apple (NASDAQ:AAPL) was reportedly having an interest to buy Tesla. Whether it will materialize or not the underlying effect are still vague at this moment. On the other hand, the multi-tech giant can easily acquire the automotive company since Apple has reserves about $200 billion while Tesla has around $33 billion of market capitalization.
Tesla had better have another potential catalyst to fully recover in this quarter. Can it match its spending with its income?Can it meet the production of the Model 3 and satisfy the customers?How about its stationary battery business? And the giant battery factory? Is the plant ready to produce cells? Well, Tesla might be able to give the answers after the bell on Wednesday.